When you are making a search for Vehicle Finance in order to purchase a new or used car, it is prudent to find a loan that you can repay, without putting stress on your finances. Surely, you would not like to borrow the loan that has the potential of harming your financially. Therefore, keep some aspects of the loan in mind before applying for it.
First, get free copies of your credit report from all the three reputed credit rating agencies. All the copies must be completely free of errors. There should not be any misrepresentation of the payments that you made in the past. The lenders will deeply study the report for giving you credit score in order to judge the risks you carry. In case, your credit history is having stains like late payments, defaults, arrears or CCJs, then you are a high-risk borrower. Hence, apply for the finance only after making some improvements to the rating on paying off some debts. This measure will help you in borrowing the money at relax terms and conditions.
Another aspect that you must be prepared to meet is making down payment to the lender. The down payment should be of good amount, as the higher is the payment, the more are chances of getting vehicle finance at low rate of interest, even if you carry a bad credit history. Therefore, ensure that you have saved good amount of money for few months prior to applying for these loans.
Depending on the price of car and your requirements, the finance can be borrowed as secured or unsecured loan. Low rate is ensured on the secured loan, which is given against your valued property like home or the car itself. The unsecured loan carries a little higher interest rate, as the loan comes without any security or collateral. Amount of both secured and the unsecured loan will not exceed the price of the car in the market. Both the loans are of short-term of 5-7 years.
Compare as many offers of vehicle finance as you can on internet. You should note down their rates and additional charges in order to find out a suitable less burdensome deal for your circumstances.
