Just like everywhere else, here in the United Kingdom, one’s credit worthiness and the capacity to pay is based on his credit history and credit score. There are three major credit bureaus who took the task of gathering people’s credit scores from the reports banks and other financial institutions submit to them and they are Experian, Equifax, and Transunion. Once a year, all citizens can request for a free copy (yes, you have to pay for a copy of your credit report) of their credit report on the net via the government sponsored free credit report website. http://www.nocreditcheckcarloans.co.uk
Now, if at some point in the past you made some defaults in your monthly payments, or you had a lot of late credit card payments, or you had county court judgments or bankruptcies marked against you, then your credit score goes down dramatically and that is when your financial troubles start brewing. If you have bad credit, your borrowing options are very much reduced. Banks and big time financial institutions would rarely extend credit t someone who has poor credit, and if it happens, the interest charges are usually very high. In fact, only a few months ago, a few large banking corporations and lending companies have tightened up a bit with their dealings with borrowers who are bearers of mid level credit scores. So for those of you who have been approved for car financing by huge banks and are now currently experiencing difficulties making payments, make sure that you recoup because it would really be very difficult to find another one that will grant you another loan.
However, there is another option for people with bad credit to get a decent car financing program and that is through car leasing with credit problems. This is made possible by the stiff competition between the many lenders here in UK and that has pushed a lot of them in taking greater risks in order to acquire additional business.
By and large, people with poor credit are expected to have high interest rate charges, be required to make huge down payments, or if it is leasing, make security deposits. Usually the interest charges are computed based on the credit rating that the individual has meaning the lower the score, the higher the interest charges. Another option for those who are having difficulty in securing a car is through the lease takeover program. This setup is also called lease assumption where you take over the lease payments from someone who really needs to get out of his own lease program. This scheme is not as strict as the actual car financing or direct car lease program although a check on your credit history is also a part of the entire transfer approval program.