Whether you’re just excellent with money and haven’t had to borrow any money, or you’re simply young enough to never have to, trying to get credit without having a credit history can be tricky.
It can in fact, seem a little unfair if you’ve managed your money well, because now you need finance you’re being punished for it. What makes you a risk to credit lenders?
Lenders prefer to lend to people who have borrowed in the past, because the lenders then have an indicator of whether they pay their loans back. This is why it can sometimes be tricky to get credit as someone with no credit history.
However, everyone has to be a first-time borrower at some point, so it’s all about being strategic about who you apply for credit with.
Luckily, there are credit products available that are designed for those with bad credit and those with no credit history. If you’re new to credit, you should aim to prove that you can be trusted with credit, build up your score and then perhaps get a better deal the next time.
Using a broker increases your chances of getting credit, because you’re effectively applying with an agent who will find the best car finance deal available for you. We have access to a large portfolio of lenders, so when you apply with us, we can match you with the lender most suitable for you and your budget.
It helps to be on the electoral roll, but if not we may still be able to help. , Naturally it helps to have a driving license, but if not we may still be able to help with one of our specialist panel of car finance companies. Whatever you’re circumstances we’ll always aim to find the most suitable lender for you, and should be able to get you on the road in no time.
A guarantor loan may be the best option for people with no credit history. This type of loan is perfect for people with bad or no credit history because it requires a second person to guarantee that the loan is paid. This means that if you are unable to make the repayments, then a second person, usually a family member or a close friend, will promise to pay it instead.
The guarantor will need to have a good credit rating and usually they will be a UK homeowner.
Because this is based on trust, rather than a credit score, a guarantor loan is the perfect way to get on the credit ladder.
If you’re looking for car finance, and you don’t have a credit rating, then don’t hesitate to get in touch.