Being refused car finance isn’t nice. Whether you need a new car out of necessity to replace your old banger, or simply want to upgrade to a newer, faster model to enjoy, being told that you don’t qualify for finance for some reason or another can really ruin your day (to say the least).
The good news, however, is that there are steps you can take to get that shiny new motor you’re after. Before we get on to those though, the first thing you shouldn’t do is keep on applying for car finance if you’ve already been refused.
This is very risky; every time you get rejected for finance it will show up on your credit file. Repeated rejected applications can make you look desperate for cash which, as you can imagine, is going to make it even less likely you’re going to get finance anywhere.
Now we’ve got that out of the way, here’s what you can do if you’re refused car finance:
- Improve your credit score
- Save up and pay in full
Find a lender who’s willing to look past your credit rating
Improve your credit score
One of the most common reasons for being refused car finance is a poor credit score. There are steps you can take to improve this; making payments in full and on time on things like mortgage or rent, bills or credit cards will build up your credit score, and prove to any prospective lenders that you’re a responsible borrower.
Another important step you can take is to close any credit accounts you don’t use anymore. Lenders will consider how many lines of credit you have access to in addition to your actual credit score, and having accounts for multiple store cards, credit cards or overdrafts that you don’t use anymore doesn’t look great.
Save up and pay in full
If you’re happy to wait, then another thing you can do is simply save up until you’ve got enough money to buy your car outright. This may take a while, of course, and depending on your financial situation might be years before you can get the new car you want. In this case, then you might want to consider…
You might not believe this if you’ve been refused car finance by multiple lenders, but not all lenders are the same. At Red Potato we specialise in assisting customers who have a less than perfect credit score.
Over the years we’ve helped thousands of people get a new car when they’ve been refused car finance elsewhere due to poor credit ratings, and we’re even willing to lend to people if they’re currently in a debt solution like and Individual Voluntary Arrangement or a Debt Management Plan.
If you’d like to know more about our car finance options and how our application process works, then please Apply Online Below for an instant decision with no impact on your credit score!
Representative 19.9% APR