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Poor Credit Car Finance

Firstly, We Finance Any Car are here to help. If your credit score is far from perfect, then the good news is that there are ways of improving it.

Although you can’t rewrite the past and correct some of those financial decisions that are now history, you can make a concerted effort to practice good credit utilisation going forward. This will make gradual improvements to your credit score.

What is Credit Utilisation?

Quite simply, credit utilisation (also known as, balance-to-limit ratio or utilisation rate) is a percentage referring to the balance between how much credit an individual is using, versus how much they have available to them.  If someone with £10,000 of credit spent £2,000, then their credit utilisation would be 20%. If you have multiple credit cards, then they are often calculated separately, and then together.  Your credit utilisation is an important indicator of credit risk. A high credit utilisation can give lenders the impression that you’re relying on credit – this could negatively affect your credit score.

Maintaining a good credit score

Actually maintaining a good credit rating is not always easy – it’s about striking the right balance between using your credit, and saving it. There are a number of different theories about the ‘right’ credit utilisation ratio.  The general consensus is that approximately between 20 – 30% is ideal. What is more important, is that you use enough of your credit to build up a detailed credit history.

If you have several credit card accounts and owe money on them all, it might be worth thinking about trying to consolidate your debt. If you do have multiple credit cards, a 0% interest balance transfer credit card is a good place to start.

It’s also worth trying to pay down the debt. You will reduce your credit card balances by paying more than the minimum amount each month. If you are struggling to repay your debts, if may be worth speaking to debt advisers like StepChange, Debt Charity, or National DebtLine, which is managed by the Money Advise Trust.

Need help with Car Finance

Should you have a less than perfect credit score, there are plenty of great deals and cars available. Buying a car with poor credit has never been easier. At We Finance Any Car, we are confident that we will be able to secure poor credit car finance for you, at an affordable and fixed monthly rate.

We Finance Any Car are here to help, even if you do have poor credit. Our friendly car finance experts are ready to help.  Call us on 01277 424337 or complete a no-obligation application that won’t affect your credit score on our website