Loans Guides

Adverse credit car loans

Article updated: Friday 5 June, 2009 By becca.talbot@consumerchoices.co.uk

If you have a poor credit history, it may prevent you from getting the best finance deal when it comes to buying a new car. It’s important you look at all the options available, and shop around to find finance that suits you.

Below are a few tips on making sure you get the best deal you can…

Alliance Leicester Unsecured Loan

Company	% Typical APR
	Borrow between £7,500 and £15,000 with Alliance & Leicester, 8.0% APR typical.

Compare adverse credit loans

Work on your credit rating - The worse your credit rating is, the higher the rate of interest you will have to pay on any money you borrow, because lenders are taking a risk by lending you money. Read our top tips to fix your credit rating for ways to help improve your credit rating and thus improve your chances of being approved for car finance.
Car finance companies - If you absolutely need a car but have been refused a low-rate loan on the internet or on the high-street, a car finance company is a far better than a secured loan, despite the high interest rates. The worst that will happen if you can’t keep up the repayments is that you’ll lose your car – rather than your home.
Find a cheap car - If you’re strapped for cash you should also go for the cheapest car possible, and definitely not a new one. But beware of false economy and make sure that you don’t buy a car that will cost you money in maintenance instead.

Our recommendations

If you do your homework, choosing an adverse credit car loan will be a lot easier. Take your financial situation into account and don’t commit to anything you can’t afford.

Whatever you do, make sure that you compare the APRs of all the loans that you’re considering so that you can see how much each will cost overall

And download our free complete guide to credit reports to help you understand and improve your credit rating.