Hire Purchase Cars for Bad Credit
Looking for hire purchase cars for bad credit? At We Finance Any Car, we are specialists in bad credit car finance – helping hundreds of customers bag the car they need with flexible and affordable solutions.
Nothing ruins the excitement of buying a new car like a finance rejection. When you’re being hindered by a bad credit rating, it can make the process complicated and frustrating (to say the least). If you are experiencing financial difficulties, don’t feel disheartened. Hire purchase is still a viable option and, with our expertise and support, your new car could be just around the corner.
We want to give each and every applicant a fair chance of securing a car finance deal. After all, a bad credit rating doesn’t dictate your right to get behind the wheel. That’s why we take a personalised approach, where all finance reviews are completed by a real person and not just a computer-generated score.
What you can expect:
- Lenders who specialise in bad credit finance
- Fair application review
- Soft search credit check
- No initial deposit required
- Achievable payment plans
- Exciting range of new and used cars
Putting the human touch back into hire purchase car finance – submit an online application today to explore your options.
Hire purchase cars for bad credit - we're on your side
Can you secure a hire purchase deal with bad credit?
Yes, even if you have bad credit you can still secure a hire purchase finance deal. Because the agreement is secured against the value of the car itself, lenders may be more willing to offer this type of finance than other options.
When it comes to car finance, there is no right or wrong way of doing things – it all depends on what makes sense for you. If you want to own the car at the end of the loan term, hire purchase can be an appealing route to take.
The catch? As with all car finance deals, your creditworthiness is one of the biggest deciding factors in getting approval. This can make things a tad more challenging, especially if you have a financial history of late or missed loan payments. Luckily, you’re in the right place…
What is hire purchase?
Whether you’re looking to buy a new or used vehicle, hire purchase (HP) is one of the most popular finance options available. Instead of paying the full purchase price upfront, you make set monthly payments over a certain time period. The loan term for hire purchase car finance is usually between 1 to 5 years – this will depend on a range of factors including your budget, the interest rate, and your creditworthiness. Once you have come to the end of the loan term, and you have covered the total cost of the car (including interest), you become the legal owner.
Sounds simple enough, but what does this mean for applicants with a poor credit rating?
If you have a bad credit rating, lenders may view you as a higher-risk applicant and you may encounter a few more obstacles during the application process.
There can be several factors that negatively impact your credit score – ranging from missed loan payments to a County Court Judgement (in more extreme cases). In many instances, these circumstances are beyond our control and we understand how disappointing it can be to face rejection after rejection.
That’s why we work with a panel of lenders who have experience working with bad credit applicants.
Although we can’t guarantee approval, we go above and beyond to find our customers the best deal possible.
Will my monthly repayments be higher with a bad credit rating?
Depending on your credit score, the rate and terms you’ll be offered will vary. Ultimately, having a poor credit score will likely increase the amount you are expected to pay each month. There are a few reasons for this.
Unfortunately, having bad credit automatically raises concerns about your ability to fulfil the loan term. In the eyes of a lender, it can indicate a history of late payments or defaults, presenting you as a less reliable option than someone who has a stronger credit score. As a result, you may be charged higher interest rates to offset this potential risk. A larger chunk of your loan will therefore go towards interest, increasing your monthly payments.
We recognise that this can be a cause for concern, especially if you are already struggling financially. But we are here to help.
The first step is to review your finances using our online calculator. From there, you will have a better understanding of your monthly payments and how to factor this into your overall budget.
Whatever your situation, you will likely have other financial responsibilities to consider – don’t take on more than you can afford! We will work with you and your lender to secure a finance deal that is achievable.
I have a poor or incomplete credit history - will this affect my chances of approval for hire purchase finance?
Poor credit histories aren’t always the result of financial difficulties. The vast majority of young adults will be at the start of their financial journeys, meaning they haven’t had the chance to build a strong credit rating. This will also be the case for individuals who tend to only use cash or debit cards when making a transaction. In both instances, this can make it more challenging to secure a car loan.
By working with open-minded lenders, we aim to make car finance as accessible as possible. If you’ve previously been turned away from a loan application or you’re worried you won’t fit the eligibility criteria, our service is for you. With We Finance Any Car, you’ll be behind the wheel in no time!
Credit scores – what are they all about?
The ins and outs of credit scores can be tricky to get your head around. You may have heard the term before but are unsure how it all works. For some of you, this will be a completely alien concept. Whether you’re in desperate need of a car or are just starting to browse around, having a good understanding of your credit score is essential.
In simple terms, a credit score is a 3-digit number that demonstrates how reliable you are at repaying a loan. This ranges from excellent (between 800-850) to bad or poor (anything below 580). You can check your credit score by requesting a report from one of the major credit bureaus, such as Equifax, Experian, and TransUnion. For convenience, you can also sign up for credit monitoring services that provide regular updates.
Can I secure a hire purchase agreement without a credit check?
It can be tempting to submit an application without having your credit history reviewed, especially if you’ve got a bad credit score. For many, this is often a stressful part of the application process. But with We Finance Any Car, it doesn’t have to be!
Credit checks are important – they are to protect both you and the lender. Although we can’t offer a no credit check car finance deal, we have introduced a slightly different approach to ensure your credit rating isn’t damaged.
The majority of traditional lenders will automatically use a hard credit check to assess your creditworthiness (your ability to repay the loan). This can potentially lower your credit score and will remain on your credit report for a period of time, usually around 2 years. Although this can put many off from applying, it is particularly problematic for applicants who already face limited credit options.
To ensure our lenders get the information they need to approve deals, while also putting you at ease with a less invasive solution, we use a soft credit check service.
How does this work?
Once you’ve submitted your hire purchase finance application, the lender will conduct a soft inquiry into your creditworthiness. This gives them a brief snapshot of your credit history. If they are satisfied with this initial assessment, they will provide you with a pre-approval decision.
What other finance options are available with bad credit?
At We Finance Any Car, we offer a wide range of car finance options for a wide range of circumstances. The deal that is best suited to you will inevitably depend on a range of factors, including your budget, individual preferences, driving needs, and financial situation. As always, our friendly team of car finance experts will be available to offer advice and help you settle on the right plan.
Personal contract purchase car finance is an alternative option to consider if you are after more flexibility or have the funds for a newer model, although you may find it more difficult to secure a deal with bad credit. This is due to stricter eligibility requirements and the risk involved with lower monthly payments.
Need a little extra support with your application? Why not consider guarantor car finance?
Opting for a guarantor car finance agreement can provide added security for those with bad credit scores or limited credit history. Plus, having a guarantor can help to strengthen your application and improve your chances of approval.
Try our free finance calculator today!
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