Should I improve my credit score before buying a car on finance?
The question that many people interested in buying a car on finance seem to be asking is “Can I purchase a vehicle with poor credit?” The answer is yes; however, the question remains – should you improve your credit score before purchasing a new vehicle?
Buying a car on finance has never been easier. With more services out there than ever before, offering great deals for anyone after a new car, car buyers are truly spoiled for choice.
Although, many services accept people with poor credit scores, there are numerous restrictions that you will have to deal with. For example, depending on how poor your credit score is, you likely won’t be able to benefit from PCP, as it’s strictly exclusive to people with good credit, as it offers more flexibility and freedom.
Hire Purchase, is the option that will likely be offered to you. Although, it’s still the most popular option out there, it does have its restrictions. Whereas PCP is quite flexible, as it allows you to switch vehicles after a certain period of time, HP doesn’t really allow for that. You still get your desired car, and you pay for it as you normally would; however, if you fall behind on your payments, the car will be repossessed and you will be left without a vehicle.
Should you try to improve your credit score before applying for finance then? It entirely depends on what you are looking to get out of the process.
Although, improving your credit score won’t hurt you in any way, it’s important to remember that, depending on how bad your current credit score is, it could take months, if not years, for you to get it back to normal. If you’re desperate for a new vehicle then, you might not have the time to that. If, on the other hand, you don’t mind waiting and you want to benefit from more flexibility and freedom, then improving your credit score could be a good idea, before applying for any forms of finance.
We hope you found this article helpful. Be sure to check out the rest of our blog for more exciting and informative content, and don’t forget to return shortly for all the latest from the Car Buying Guide.