If you’ve been told you have adverse credit due to bankruptcy and cannot take out the loan you wanted you may be wondering what on earth that means and what you can do now. Having adverse credit means you have a poor or negative credit rating which can affect your ability to get some loans or other finance. Being in a position where you have lost everything due to the bankruptcy is bad enough but there is a light at the end of the tunnel. If you search thoroughly you will be able to find lenders who will accept those with adverse credit due to bankruptcy.
The key is to be prepared. Your credit rating may lower the size of the loan you can have or limit the types of car finance you can get. Mostly this means you can only get secured car finance which means the company uses your property as a guarantee that you will pay back the loan. An unsecured car finance loan will be much more difficult to obtain than the secured loan if you have a bad credit history.
In these situations you have three main options to consider. The first is to accept a lower rate loan and purchase a used or lower model vehicle that you can afford with this amount. This will mean you don’t get the car you want straight away but it will help to bump up that adverse credit for future car finance.
The second option is to hunt online for a better deal. There are thousands of credit companies out there that specialise in getting people with adverse credit car finance or other loans. Don’t feel like you have to be bullied into a poor deal just because you have poor credit. Check out various different companies, what offers and deals they have and what loans they can offer.
The third option is to go for a no credit check loan. If you have an adverse credit rating then this could be the option for you. For this type of loan, no credit check is made on the individual applying. They base the loan amount you can borrow on your current ability to pay it back so all you will need is proof of income. If you have an unstable income then they will probably examine the lowest possible amount that you can achieve and base your loan on this amount, so this type of loan may not be suitable for the self employed. Be aware though that without a credit check you are likely to pay a higher rate of interest.
Don’t let your credit rating ruin your life; you can get car finance just like anyone else. Always ensure you look around for the best deals and offers, make sure you know what the company is all about. You should also ensure that you have chosen a loan that best suits you. Take a look at its benefits and downfalls and ensure that you know exactly what you’re getting into. Make sure you can afford your loan especially with secured car finance. You need to ensure that in the worst case scenario you will still be able to pay those monthly payments.