Motor car finance for people with a bad credit record is extremely difficult to access. A poor financial history means that you have defaulted on your monthly repayments, or have had previous problems repaying a debt. When banks process applications for vehicle loans, they assess this history and will either approve your finance application or reject it. Financial credit providers have to be extremely careful about who they lend money, and often require high interest rates of those with a bad record. If you would like an auto loan without all of the red tape then there are some ways that you can improve your appeal.
The first thing you need to know about financial credit providers it that it is unlikely that they will approve motor car finance for people with bad credit. This might feel unfair to the person applying, but banks must base their risks and assessments on sound and accurate data. They cannot simply hand out money to everyone. Vehicle loans make it much easier to buy a car, but if you are already in debt, then perhaps the solution is not always borrowing more money for extravagant purchases. Most South Africans get around from month to month on credit. Most people simply need vehicle loans to get by.
A simple way to get rid of all of those loans and to repay past credits is to take out a debt consolidation loan. This type of loan pays of all of your existing debt and leaves you will only one monthly instalment to make at one interest rate. If you need an auto loan, have a desire not to enter into new debt then talk to your financial credit providers about debt counselling or debt consolidation. It might allow you to access vehicle loans that you may never have dreamed of. This makes it easier to access motor car finance for people with a bad credit record.