People who are encountering some financial difficulties often believe that they have lost the chance of buying another car. But nowdays, it's not anymore a problem. The basic and the most common idea that people would think of is to apply for a car loan. But for those people who have had the experience of having a bad credit history, the best option is to go for a loan under the heading of guaranteed car finance.
Guaranteed car finance is provided by a number of companies and is aimed at people who have good finances, but have suffered in the past with a black mark on their credit record. This situation is all too common and occurs when someone has lost their job previously and have been unable to make payments on previous loans but now they are working again. This process of rebuilding your credit takes a lot of time. It may take years before you can consider yourself to have a good credit record.
Some auto lenders will not be interested in you if you have some poor history and they are only looking for people that have perfect credit records as they consider them very safe prospects. Some people will see this and believe that all lenders are the same and that they have no chance of getting the necessary finance to buy a car. It is certainly true to say that there are auto loan companies that think this way and will only entertain those with good credit status. On the other hand there are a growing number of guaranteed car finance companies that will help you if you have a bad credit history. In this case they will not need to perform a check on your credit status. There are three very important characteristics that they will look at. The first one is your employment record. Since you have a bad credit record the lender will want to be as confident as possible that you have a regular income and that you will repay the loan. That is why they will want to see that you have a job and that your income is fairly secure. Next is your bank statement, it is believed that most of the lending companies will request you to provide recent bank statements to them. If you have an account of your own, it might well be worth asking your bank if they offer this kind of loan as the rates will probably be lower. The last thing that is needed to be settled is the amount of your down payment. It is better if you can pay a higher amount, in that way you are more likely to be accepted and the repayments will be lower.
So if you are interested in obtaining a car loan and have a bad credit history, you need to be able to comply with all of the above requirements and in no time you can be qualified for guaranteed car finance. When looking for a lender choose one that offers this kind of finance and you will stand a much better chance of getting the money. If you go to just any lender then you will probably end up disappointed and waste a lot of time.