May 5, 2022
by Ella Watson
Who doesn’t dream of owning a car and creating endless moments? Whether planning a family trip to take household goods or a weekend grocery plan, every person has responsibilities, including- having a car. While carpooling and booking cabs are popular, the desire to own a car remains at the top of the list.
Buying a car is easier said than done. Car loans help bridge the gap between dream and reality by offering financial assistance. If the credit score has dropped over time, the car loan becomes difficult. It is because getting bad credit car finance in Ireland is challenging. In-car finance, the creditors share the risk of borrowers falling over repayment. They prefer providing car finance to people with a good credit score.
Individuals with a less than ideal credit score find financing a used vehicle workable. Getting new car finance on bad credit is complicated. There are many myths and misconceptions associated with bad credit car loans.
Is Getting a Car Loan on Bad Credit Impossible?
If you are taking personal loans in Ireland on bad credit along with making efforts towards car financing, you must not make any haste decisions. Some critical events in life cannot wait, but delaying the car loans owing to bad credit is not a good idea either. Here are some misconceptions associated with car loans on bad credit.
1) Making massive down payments is a must
Individuals often believe that lacking good credit can pose difficulty in getting a car loan. And owing to this, they believe they will have to put down a good upfront amount to get the loan approval. The reality is – that you can apply for a car loan without putting up an enormous sum upfront. Although lenders suggest borrowers with bad credit do so for easy approval on a car loan, it is not mandatory.
If you are applying for car finance on bad credit, you may get car finance without paying a huge deposit. The terms and conditions vary from lender to lender.
2) You cannot get bad credit car finance.
It is a misconception which prevents many from rationalising their dream of financing a car. If you do not share several debts in the credit report or have suffered a bankruptcy lately, lenders may consider your loan application.
First, if you need car finance with a low credit score, analyse the good and the bad part. Think about whether you can save for a car finance deposit? Second, ponder on your car options. Analyse, can you go for a relatively inexpensive car? If yes, you can get bad credit loans in Ireland. A car loan is a long-time financial commitment, and making regular and on-time repayments can optimize your credit score and positively impacts your credit history.
It will further help you take personal loans in Ireland for any purpose at low-interest rates. Having a smooth pathway to your dreams begins with preparation. Making timely payments is a staircase to rationalising your long-term dreams.
3) Customer share limited Authority
If you are seeking car finance with an inappreciable credit score, lenders impose a few restrictions in terms of flexibility. It does not imply you lack a say in that. If you lack a good credit score, you can shop around the lenders and explore the terms and conditions.
You may find someone that rides exactly on your dream path. You can connect and explore the option with the expert’s help.
With bad credit car finance, you lack multiple options. But you do not have to agree on the first lender. You shouldn’t feel pressured to accept the deal. If you hit a better option, go for it. It is all about making the right and comfortable choice.
4) Taking a loan to finance a car is mandatory.
No, it is beyond reality. Everyone dreams of owning a car. If you stepped back just because of fearing a debt trap, read. One indeed has to meet some parameters to get a car on loan. But taking another loan to get a car loan is a wasteful thought.
If you have enough savings for a down payment, you may get it with less-than-perfect credit. Savings are a greater relief if you wish to rationalise your dream. However, if you don’t have one, you should not seek a loan unnecessarily. Car financing comes with multiple perks. And you can use these for your benefit.
5) Car Financing comparison destroys credit score.
Many individuals believe that getting a car financing quote destroys the credit score. It is not true. When you apply for car financing by filling in personal details, you receive a credit check call soon after. A credit check is a soft credit check where lenders check the credit score for approval eligibility. Check helps ensure loan affordability. It does not affect the credit score. One should avoid filling multiple checks at a time.
These are some common misconceptions about taking car loans on bad credit. Explore your options wisely and analyze the affordability before signing off the document.