Acquiring your very own car is a dream come true for many. It is one of the basic requirements in one’s life. However, people are often unable to afford the car they covet due to the lack of finances, a bad credit history, or a thin credit file.
When you have no or bad credit history, it is a definite thing to expect that the regular financial institutions such as banks won’t be considering you for a personal loan at all. The guarantee is missing and of course the history is either missing altogether or is negative.
But that certainly doesn’t mean there are no options for those who are skinny on credit score or have had bad credit history, to acquire car financing. Some of the options to consider are:
The Credit Unions
Credit unions are the community based non-for-profit6 financial institutions which aim at providing funds and financial support to its members at easy terms and relaxed payment schedules to facilitate their needs. These credit unions could be the go-to option when you have had a bad experience juggling finances, maintaining credit or if you do not have a sound financial position at all. The competitive interest rates offered by the credit unions make it a lot easy for any common person to purchase a car they need and also manage their personal finance alongside.
The Guarantor Loans
Guarantor loans or buddy loans are one of the options top consider when you are looking for financing options for your car purchase, that too with skinny credit score or a bad credit. Asking your friend/ family member to guarantee the loan for you will get you in a position to apply for a good amount of financial security so you could purchase the car and pay off the debt in time. However, for this the guarantor has to have a good credit history.
Also, co-signing is a wonderful option where one of your acquaintances/friends signs the loan with you and shares the responsibility of the debt while you enjoy the perks of their good credit history and get a chance of building your own.
Peer to Peer Lending
Peer to peer lending is one option many people opt for the first thing however that can only be possible if you have friends or family members with a strong financial; status to lend you a hefty amount. This option helps you discuss the terms and conditions of the loan and you can also have a flexible and stretched repayment schedule which suits your financial status and foreseen expenses. Social lending has been gaining tremendous popularity for the flexibility of it.
It is always a good idea to rethink your current financial standing and grow in financial terms. If you have a skinny credit because you did not have much to prove yourself worthy of the credit you wanted, or you’ve had hard time paying off debts, this is the chance to improve it once and for all while you enjoy your favourite car.