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|Amount to Finance||£7,000|
|Total Amount Payable||£9,289.20|
If you have bad credit, finding the funds to buy a car can be tough. After all, mainstream lenders and high street banks are often unwilling to lend to anyone with so much as a missed payment, let alone a default, CCJ (County Court Judgement), or worse – a mix of all three.
However, at Stoneacre we look at things a little differently. Rather than dwelling on the past and whether or not you have defaulted on historical financial commitments, we focus on your current situation and whether or not our car finance products are both suitable and affordable based on an assessment of your individual circumstances. This approach aligns us with one of the Financial Conduct Authority's (FCA – UK regulator for consumer credit) key principles – Treating Customers Fairly
Furthermore, not only are we a direct lender, but we also have a panel of alternative lenders along with a large in-house team of underwriters and finance specialists who are on hand to provide expert help and advice throughout the application process.
Bad credit is a term used to describe an individual who has failed to maintain one or more of their financial commitments. For example, failing to make a payment on time or refusing to pay altogether and is often an unwelcome result of unemployment, sickness or unexpected bills/expenses.
The result is often one or more of the following (ordered by severity) being recorded on your credit history:
Missed Payments - Missed payments are fairly self explanatory; essentially, whenever a payment is missed the lender in question will record it as such on your credit file. When applying for car finance with a record of missed payments, banks and mainstream lenders are likely to see you as an increased risk and may assume that you are likely to miss payments with them too.
Defaults - A default is recorded on your credit file by a lender when you fail to meet your legal obligations relating to a finance agreement. It's usually only recorded after multiple payments have be missed or a period of several months has lapsed since the payment was due and will remain on your credit file for six years – having one is almost definitely going to rule out the possibility of a mainstream lender or bank accepting an application for credit. However, for alternative lenders such as ourselves and those on our panel, a default won't necessarily be an issue.
CCJs (County Court Judgements) – Other than bankruptcy a CCJ is the most serious outcome of failing to stick to a financial commitment. It is essentially an order from the court that enables the lender to commence doorstep debt collection activities. Although it sounds serious, it doesn't necessarily mean you will be unable to obtain car finance.
Bankruptcy – This is the final stage in the life of a debt and can be instigated either by the debtor or the lender depending on many factors. Applying to finance a car whilst bankrupt may be against the terms of your bankruptcy order so it's important to seek legal advice beforehand; not only that, but even lenders who specialise in bad credit are likely to decline an application based on this alone.
When applying with Stoneacre the short answer is no. Traditionally when an application for finance is made, a full credit check is carried out and indeed this is still the case with some lenders and brokers.
However, Stoneacre prefer to conduct a soft search, which is the same as a 'quotation search' that car insurance companies use when generating a quote and therefore won't leave a footprint on your credit profile. The only person who will see it is you (provided you have access to view your credit report).
A soft search also enables us to match you with the most suitable lender without having to carry out a full credit check with multiple lenders and enables us to offer a provisional decision within minutes.
This eliminates the risk of a lender being put off by the fact that other lenders have already carried out a credit check in your name (multiple credit checks are sometimes seen as sign of desperation and can result in an application being outright declined).
It's important to understand that each lender has its own underwriting criteria - something that most are tight lipped about. Because of this, a refusal by one doesn't necessarily mean refusal by all; it's all about finding the most suitable lender based on an assessment of your real-life circumstances.
Here's a brief overview of our application criteria:
UK Resident – You must have been a UK resident for at least three years.
Over 18 years of age – This isn't just our fresh-hold, UK law stipulates that you must be at least 18 years of age in order apply for and enter into a car finance agreement.
Earn £600+ a month after tax – Most lenders (including ourselves and our panel) look for a minimum income of £600 a month, this can come from employment, self-employment, benefits.
Not bankrupt – If you have completed your bankruptcy order we may be able to help. However, if your bankruptcy order is still in place then we'd suggest seeking both legal and financial advice before applying for car finance.
If you are struggling to maintain your current financial commitments then adding more debt in the form of car finance is only likely to make the situation worse. The best thing to do is to regain control of your finances and in the mean time consider alternatives such as saving a little every month and buying a car outright, car sharing or public transport.
For professional help or support you can reach out to – Money Advice Service Step Change or Citizens Advice – all of whom offer free, impartial and confidential advice on issues surrounding budgeting, bad credit and debt.
We're a multi award winning car finance team – We're immensely proud of our customer-focused approach along with the work we've done to innovate the way in which we assist customers who have had previous financial problems. It's also something that's been independently acknowledged resulting in us scooping a number of prestigious finance awards. Firstly, we were crowned double Finance and Insurance (F&I) Award winners in 2012 and in 2014 received the highly coveted Treating Customers Fairly Award.
2 out of 3 applications are approved – At Stoneacre we approve as many as two-out-of-three applications made via our website. Furthermore, the average turnaround time between us receiving you application and one of our car finance specialists contacting you to complete the process is under 10 minutes.
Family-run business for more than 20 years – With over 20 years’ experience, Stoneacre remains a family owned and run business, is registered in the UK, has full FCA permission to offer consumer credit services such as car finance and is Specialist Automotive Finance (SAF) approved.
Sasha McCormack is a Sales Manager at Stoneacre Motor Group
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