Your credit history will affect every aspect of your financial future. However, keeping your credit in good standing can be difficult from time to time.
No matter the reasons for your bad credit history, there are ways to improve it to secure the finance you need when getting a new car.
Finding finance with a bad credit history
If you have a bad credit history, you might be concerned about how to get car finance. Once you have assessed your financial situation, you might be able to access bad credit car finance.
There are things you can do to improve your chances of receiving the finance you need. We take a look at the top tips to improve your credit history below.
Tips to improve your credit history
Check your credit score and report
First, you need to understand your credit history. Obtain your credit report and score, as it will help you assess your credit history and where to make improvements.
Pay your bills on time
Consistently paying all your debts on time will help you improve your credit history and get car finance. Lenders will want to see that you are reliable in making repayments.
Pay off credit card debt
The more credit card debt you pay off, the better your credit history will be. Ideally, try to pay off above the minimum every month to clear your debt quickly.
Avoid applying for new credit
It can be tempting to apply for new credit to pay for old credit. Avoid doing this as it will continue to harm your credit history. Especially if you get rejected for multiple lines of credit.
Dispute inaccuracies on your report
Once you have assessed your credit report, make sure you report any inaccuracies with the credit score provider. You can then work to get false credit information removed from your report.
Stick to a savings plan
When applying for finance, a larger down payment can improve your chances of being approved. Make a savings plan and stick to it. You can then use your savings as a deposit or to pay off bad debt.
Get on the electoral register
Joining and staying on the electoral register can improve your credit score significantly. This is an easy step to take as it doesn’t take long to register on your local electoral roll.
Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.