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Bad car credit in Birmingham

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If you are thinking of buying a car in Birmingham but can’t afford to buy one outright, car finance may be a more affordable option, but what do you do if you have bad credit?

The whole situation of having bad car credit in Birmingham may be a bit overwhelming, you may feel there is no way of you owning a car due to your bad car credit but there are options and ways you may be able to find a solution when buying a car in.

The type of information that determines your credit score is as follows:

Payment History: the more regular you pay your bills on time the higher your score will rise.

Amounts Owed: the less you owe the better your credit will be.

New Credit: Do not open lots of new lines of credit, as this will damage your reputation with lenders.

A mix of credit: Car loan, Mortgage, credit cards, etc. these will all affect your credit rating.

Length of credit history: If you can consistently maintain paying over a length of time, this will help with your credit score.

The worse your credit score, the harder you will find it to get a loan, a low credit score indicates that you’re less likely to pay them back on time, if at all.

If you do decide to go for car finance, due to bad car credit in Birmingham there are a few things you will need to do, firstly you need to know your credit score, you can check with various online companies to get this, secondly shop around and do your researches make sure the car dealership you are planning to get your new car from is reputable.

Try and consider (if possible) a shorter loan period, although your monthly loan payments will be higher, you won’t pay as much interest over time. This could be crucial if you do have bad car credit in Birmingham, as your interest rates are liable to be higher.

If you have someone that would co-sign a loan with you, a friend or family member perhaps? This will encourage dealerships and banks to trust you, as they are agreeing to pay the loan if you do not.

Make sure that you can afford to fund a new car before going ahead with buying one on finance; it is only natural to want the best car you can afford but make sure you stick to a budget and don’t get tempted to buy above your means, If you have bad car credit in Birmingham, you do not want to make this worse by not paying this loan as well.

Always read thoroughly a finance agreement before you sign it, and consider all of your options before agreeing to anything.

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