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When most of us go to a car dealership to buy a car we expect to be able to get car credit. Most of us know it as HP or higher finance, it is the equivalent of getting a mortgage for a house.

A car is probably the second most expensive item most of us will buy, many of us rely on financing to be able to get a new car or at least new to us. Many of the larger car dealers will have their own in-house financing schemes that they can get access to on your behalf to provide you with car finance.

Car finance with bad credit can be more difficult although not impossible to get. With many of the car sales dealers they will be able to call up on several credit companies to provide you with a loan. Some opt to stick with one particular finance firm to provide credit to the car buyer.

When they check your details on the computer they will more than likely have several lenders that can provide you with a car loan. The car dealer will then usually choose the lender that provides them with the biggest kickback. That is right, not only are they making money on selling you the car but also by lending you the money.

You can however go directly to one of the specialist car financing companies. There are now several different financing firms that specialise in providing car finance to people with bad credit. Bad credit car finance can provide you with the money to be able to get the car you want. This means that you do not have to depend on the car dealers whose finance companies accept you.

Rather than doing a credit check on you which may bring bad a poor credit score and therefore automatically refuse you the finance, they will look at your ability to repay the loan. They are specialist lenders and deal with people who have a poor credit record and specialise in bad credit car refinance.

If you take the time to compare different car refinancing offers online you will be able to get the best or cheapest rate. If you went straight to the car dealership you may well be stuck with a very high rate with no choice or other options.

Once you are accepted for the loan you will be able to also get the best deal on a car. On a car dealership finance deal you do not have and leverage to negotiate the price of the card down. With the loan already sorted you can pick and choose the best car deal thus saving you money on your repayments.

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When it comes to finding cheap car finance, you have plenty of options. Unless, that is, you have a less than perfect credit history. As a result of the recession a tremendous number of people have suffered at the hands of credit cards, store cards, loans, overdrafts and credit agreements, and this has resulted in more poor credit histories than ever before.

A credit history is a detailed account of how you have managed in keeping up with repayments on previous or current financial commitments, from your sofa to your overdraft, from your store card to your mortgage. If you make a payment a little late, this will be automatically recorded on your credit history, as will any missed payments, defaults or CCJs, otherwise known as County Court Judgements. All of this negative information can quickly begin to pile up, and many entries on credit histories remain on file for up to six years after the debt has been cleared.

When looking for car finance or car loans it is important to be aware of the fact that although you can’t escape your credit history, you actually do not have a credit score. There is no such thing as a credit score on file for you. What tends to be referred to as a credit score is the assessment which a car finance firm or other credit firm makes based on the data in your credit history.

Vehicle finance firms, banks, credit card companies and car loan companies will all have different means of rating your credit history, with some being more thorough than others, more harsh than others or more lenient. This is why sometimes you can apply for cheap car finance with one car loan company, and be declined, yet you are still able to get cars on finance from elsewhere.

It’s also important to be aware of the fact that you don’t even have one single credit history. In the UK there are three main credit agencies, and although some credit companies will register your accounts with all three, this is rare, and you generally find your financial data is only registered with one or two of the agencies. This means that any finance firm which carries out a credit check is only actually checking one of the three potential credit histories, and each of these histories may differ slightly in terms of the negative information held.

Because of this fact, coupled with the different ways in which finance firms and car loan companies rate a credit history, you can often find that shopping around results in you being more successful in getting approved for cars on finance. However, a word of warning. Because although based on this information it sounds tempting to simply go out and apply for car finance with every car dealer and finance company you can find, this is likely to work against you, and actually lower your credit rating. This is because whenever you approach a car finance company for a car loan they will carry out a credit check, and this check will be recorded on your credit history. Only the fact that a credit check was carried out is recorded – the result of the application isn’t known.

But if car loan companies see that you have made a dozen applications for car finance in the last week they’re almost certainly going to turn you down. They’ll do this because they won’t know how many of those applications were successful, and how many you’ve taken up. Potentially you could be seriously over committing yourself, and so they’ll decline you.

Of course the quickest, simplest, safest and easiest way of getting car finance is to apply for a car loan from a company that doesn’t carry out a credit check. In this way it doesn’t matter what your credit history is like, and you won’t have to brace yourself for the potential embarrassment of being declined. Guaranteed car finance has become an increasingly popular choice for many people, with cheap car finance deals now available, and car finance companies offering a car loan which you can then use to buy any car from any dealer you like anywhere in the UK.

If you take up an offer of guaranteed car finance then it’s also a chance to repair your credit history, because every payment you make on time will be recorded as a positive entry on your file. Car finance doesn’t have to be painful or embarrassing, and your credit history doesn’t have to work against you. Call Car Loan 4U or visit their website and see how easy it is to get the car finance you deserve.