5 Myths About Car Finance with Bad Credit – Busted
Bad credit doesn’t mean you can’t get approved for a car loan. carloans365 clears up the biggest myths around car finance for bad credit borrowers.
Many people believe that bad credit automatically stops them from getting car finance — but that’s simply not true. In reality, there are plenty of lenders and brokers who specialise in helping those with imperfect credit find affordable deals. At carloans365, we’ve seen countless customers secure car finance even with a difficult financial history. Let’s bust some of the biggest myths about car finance with bad credit.
Myth 1: You can’t get car finance with bad credit
This is one of the most common misconceptions. While a low credit score can affect your options, it doesn’t make you ineligible. Many lenders offer finance deals designed for people with bad credit. You may face slightly higher interest rates, but you can still find manageable and fair repayment terms.
Myth 2: You’ll always be refused if you’ve missed payments
Having missed payments in the past doesn’t automatically mean a rejection. Lenders look at your overall financial situation, including your current income, employment, and how you manage money now. If you can demonstrate affordability, approval is still very possible.
Myth 3: Applying for finance makes your credit score worse
A single application won’t ruin your score. However, making multiple applications in a short time can impact it negatively. Working with a broker like carloans365 helps you avoid this by finding the most suitable lenders for your situation before applying.
Myth 4: You need a large deposit
While a deposit can help lower monthly payments, it’s not always necessary. Some lenders offer zero-deposit car finance deals, especially if you have a steady income or a guarantor.
Myth 5: You’ll be stuck with a poor deal forever
Improving your credit score can open doors to refinancing later on. Once you’ve built up a solid repayment history, you may qualify for better interest rates or even switch lenders.
Final thoughts
Bad credit doesn’t mean you can’t drive away in a car you love. By understanding your options and working with a trusted provider like carloans365, you can get back on the road and rebuild your credit at the same time.
