Published on Tuesday 19 February 2019 in Van News
One of the most frequently-asked questions about leasing a van with Vanarama is whether or not van leasing with bad credit is possible. Let's see what we can do to answer it.
None of us have a single credit rating or score that every lender can see when they're decided whether or not to accept us a customer. However, it is true that a roller-coaster credit history could mean being turned down when you apply to borrow money – this is why a lot of people assume they have a bad credit rating.
And Gary Lemon, Vanarama Sales Director, has some good news on that front: "A lot of our customers believe that if they have poor credit they cannot be accepted for finance on a vehicle. However, finance companies actually use a score card system to mark a customer/business against, and there are a lot of key points looked at that you may find help your case."
What ARE finance companies looking for?
It's a valid question, and the short answer is that they look at a lot of things – below are just a few of them:
- Being a long-term resident at your residential address will help the finance company find you, and making sure you are registered on the electoral register can also be crucial.
- Having secured credit before your latest request will help the finance company see how good you are at making regular payments.
- The size of the deposit you decide to put down can also help. As you would imagine, by putting a larger deposit down you are lowering the total cost of the finance, which presents less of a risk to the finance company.
"Of course, we can't guarantee that credit will always be accepted," says Gary. "But we have an experienced team here at Vanarama who will put all their efforts into finding you the best product and matching you with the most suitable funder."
We hope this has given you a little more insight into what finance companies look at. Please feel free to get in touch with us if you'd like to know more – call 01442 838 195 today.