Suppose the phrase bad credit proves the greatest obstacle when you plan to buy a car. Well, you are not alone. Many individuals just like you need a car for better conveyance support, manage family responsibilities, and reach the workplace on time. However, the past financial mistakes or bad credit history make one stumble here. It slams the door in your face when you wish to improve your lifestyle. Does that mean you will have to miss career opportunities due to the transportation gap?
Good News: You can buy the car with bad credit
Yes, you have read that right. You can now live your goal of driving your dream car despite credit issues. It is because “bad credit” does not automatically eliminate you from achieving your dreams. There are ways, like bad credit car finance, to get the keys to the desired vehicle. It is ideal for individuals with consistent income, fair financial management, and no heavy debt in recent years.
You can get behind the wheel by exploring car finance for bad credit quotes nearby. It helps you split the cost of the car purchase into instalments. You provide a deposit while buying a car on finance. It reduces the overall amount you pay on the loan and helps you fetch low interest and flexible terms.
Getting a car finance with a poor credit history holds competitive interest rates and terms. Explore the best ways to reduce the liabilities before applying.
How can I get guaranteed car finance for the unemployed in Ireland?
Getting a car on finance without a verified job proof is not possible. However, the unemployed with a monthly pension may get one. Here, the pension possibilities of getting repayment in a timely manner are. Alternatively, you can take steps to improve your chances of loan approval. It is all about improving your financial standing in the loan provider’s eyes. Here is how you can do so.
- Consider a guarantor car finance
A guarantor-based car finance is when you decide to apply for the loan with a person who has consistent income and a good credit score. It reveals your loan affordability and increases the chances of fetching an instant car finance quote for a bad credit score. The guarantor enters the scene only if the prime borrower cannot pay the dues. It is one way to get guaranteed car finance for an unemployed person. A guarantor increases the reliability of payments and hence helps you qualify.
- Set up a joint bank account with your spouse
Yes, it could be a wise decision, especially if you are unemployed but your partner has a stable job. The chances are you may get a loan by providing the strength of your consistent income and well-managed finances. However, here the partner must hold a good credit score to qualify. No two persons with a bad credit rating can come together on a loan.
- Residential address must align with the partner
If applying with a spouse, certain details should be common. One of the best examples is the residential address. You may qualify only if your wife’s and your living address are the same. Alternatively, if co-signing with parents, provide your current address.
- Get car finance if you are living on benefits
As an unemployed person, you leverage multiple government benefits to sustain a peaceful life. You can get car finance against these benefits. However, it is advisable to seek one only if you need the car urgently and cannot do without it.
Apart from benefits, you must hold a part-time income to qualify. It is because benefits alone do not reveal the reliability of payments. It is the reason most loan providers demand additional proof of earnings. Here are some benefits of which you may get a car finance:
- Universal credit
- Job Seekers allowance
- Disability benefits
- Personal Independence Allowance
What are the possibilities of a car loan with bad credit in Ireland?
Yes, you can get car finance for bad credit in the Ireland marketplace. However, for that, you need to be vigilant and conscious while applying. The first thing is – check your credit report for delinquencies. Report the incorrect bills or payment mentions.
Next, update the basic information like contact number, email address, and council bill number (if the home has recently been). Here are the next aspects that may help you qualify:
- Apply with minimal liabilities
Every responsible credit provider checks your finances and report before approval. Debts like payday loans, overdrafts, and credit cards affect your credibility drastically. Thus, try to pay these debts before applying for the loan. Also, halt your mortgage aspirations if you want to get into a car loan agreement.
- Reveal consistent bill payments
It is imperative to reveal your potential to repay the dues comfortably before seeking any loan. The loan providers check your previous payment arrangements and your outlook towards them. A car finance is a long-term arrangement requiring consistent instalment payments.
Therefore, check your debts and repay a high-interest one in regular payments without missing any. You can also consider personal loans to meet short-term purposes and build a positive credit history. These loans offer the flexibility to meet daily life needs with comfortable repayment flexibility.
- Save money for the deposit needs
A deposit is an amount that an individual seeking a car finance quote for bad credit provides upfront. It is generally 10% of the total car’s price that you must pay on the loan. It makes qualifying for the loan easy for individuals with poor credit history.
Moreover, a deposit provides an opportunity for an individual to reduce the total repayable amount and interest costs. You may provide a larger deposit if your finances allow. It must not hamper your basic living expenses. However, if you do not deposit, you can get a car loan without a deposit too. It is not mandatory to provide one.
- Get a car loan for a used car
Buying a used car is usually easier than buying a totally new car with bad credit. It is because you may spot cheap car loan quotes for used cars that lie within your budget. Moreover, you may get one easily as the loan provider does not have much liability over a used car. However, the insurance premiums could be high if you consider one.
Bottom line
Anyone may need a car to ease their lifestyle and daily travel concerns. If exploring quotes and wish to fetch the affordable one with bad credit, the tips may help. The first thing is to update your credit report and increase affordability.
Don’t depend on government benefits alone to meet your sustenance if unemployed. Instead, check for part-time earning sources to build a fair employment history. Later, you may improve the possibilities to qualify for bad credit by co-signing the loan, seeking used car finance, and providing a deposit.
Samuel Doyle is a finance content writer and loan strategist who explores the intersection of financing and technology to provide the best in terms of individual borrowing requirements. With a background in finance study and content strategy, he has written plenty of articles and blogs on finance, loans and the advent and future of FinTech. His work appears in top blogging platforms, loan product guides, and in the digital portals of online loan providers like Comparemyloan. With his writing, he has tried to bridge the gap between FinTech complexity and everyone’s loan requirements. A firm believer in ethical lending, Samuel focuses on solutions that serve people as much as profit.
