# Help & Advice

## from a Tailor Made Car Finance friendly advisor

Our frequently asked questions.
All you need to know about applying for car finance.

##### Q. Do I need a credit check?

A. The plain and direct answer is “yes”. That applies to car finance or typically any other form of borrowing you’re considering.

##### Q. Why is a credit check required?

A. Potential lenders have a professional responsibility to try and confirm that a borrower:

1. Can afford the car loan they’re requesting, in terms of their current income/outgoings;
2. Is someone who constitutes an acceptable degree of risk in the context of maintaining repayment of the car loan once advanced.

The second of those two objectives is usually dealt with, in large part, by a credit history reference check (sometimes also called a “credit check” or “credit score check”).
That process usually entails a potential lender contacting one of several large credit reference agencies who maintain information about large parts of your financial behaviours. That information includes things such as any IVAs or CCJs registered against you, late payments you might have made on your credit card bills, loans you’ve applied for and so on.
It also contains positive information about your financial history, such as loans you’ve successfully paid off on schedule.
The central agencies will use all that information to create a “credit score” for you. That indicates their view of how high or low the risks would be in lending to you.

##### Q. What lenders do with that information?

A. Your credit score is used for a number of purposes but perhaps the two best known are:

- to assess whether or not to lend to you. Some lenders won’t advance funds to applicants with poor credit histories;
- at times, to calculate the cost of your borrowing (typically their interest rate) if they are going to lend to you. Generally speaking, the poorer your credit score, the more difficulty you might have in finding finance and the more you may have to pay for it when advanced.

The Loan Application Problem
It’s worth noting that every time you apply for a loan, even if you decide not to progress it, the fact you made the application will be recorded on your credit history files. Every time you’re refused a loan, that fact will be similarly noted.
This is important because the more refused finance you have on your records, the more that might negatively affect your overall credit score. That might make it even harder for you to obtain a loan in future.
The clear message here is that if you’re looking for a car loan or self-employed car finance (or if you believe you have a poor credit history) it typically isn’t advisable to make lots of random loan applications to see what happens! This will make you look financially desperate to any other prospective lenders.

##### Q. How can Tailor Made Car Finance help

A. At Tailor Made Car Finance, we perform what we call a “soft credit check” in advance of your formal loan application.
This essentially involves checking your credit history references but NOT in the context of a loan application. This means that nothing is updated on the central credit reference databases because no application has been made.
This is exceptionally important because once we have that understanding of your credit status we will be better positioned to identify those car finance lenders who will be most likely to offer a favourable response to your car loan request. That helps to protect your credit history files, saves you time and improves the likelihood of a successful loan application.
Please don’t think that having a poor credit history means that you’re shut out of car finance options. Let Tailor Made car Finance, cut out the hassle and work with you to find a solution, using our soft credit check as a starting point.

##### Q. How can I improve my credit score?

A. Improve your credit score
If you’ve been turned down for credit a few times recently, it could well be the case that the information on your credit file is such that lenders judge you to be an unacceptable risk. Unfortunately, desperately applying to more and more lenders in the hope that one will accept you can just make things worse; credit searches show on your credit file and too many may lead lenders to believe you are just desperate for cash. To start improving your credit score, take a look at the following suggestions:

- Get hold of a copy of your credit report. Experian and Equifax are the two credit agencies used by most lenders, with Call Credit the third most popular. These companies will all provide you with a copy on request, although you may need to pay.
- Check that the basic information on the report is correct. Simple clerical errors such as the wrong address or an incorrectly spelled name can cause all sorts of problems. If you see anything wrong, ask to have it corrected.
- Clear any defaults or make arrangements with your lenders. If you are owing money on a bill and it’s appeared on your credit record as a default, the best thing to do is pay it off in full. If that’s not possible, make an arrangement with your creditor to pay it off in a manageable manner. If you have lots of defaults or aren’t quite sure how to go about offering your creditors a repayment plan, organisations such as StepChange or the Citizen’s Advice Bureau offers free advice and support.

Once you have completed the above, recheck your credit score to note the improvements (it may take two or three months for the credit information to be updated, so be patient). Subsequently, try to take out credit again – ideally a very small amount with a lender that specialises in sub-prime lending. PAY THIS OFF ON TIME. Provided you make all your repayments on time, you will be starting to build up a positive credit profile. If, having successfully paid off one lot of credit, you then apply for another, it’s more likely a lender will agree, as you’re beginning to show that you can stick to a repayment schedule

##### Q. Why don't Tailor Made Car Finance charge any fees?

A. Tailor Made Car Fiannce is a broker, not a lender, so any charges we incur are covered by the fees we receive from the lenders for arranging your car finance with them. This means we can offer our services to you totally free of charge.

## What vehicles can I purchase using Tailor Made Car Finance?

We’re specialists in bad credit car loans and typically 4 out of 10 applications get accepted. You may have bad credit or have been refused financing elsewhere. Our friendly advisors will be able to help you find a lender that suits your requirements. Please apply now to get your tailor made, no obligation quote.

## Can I get car finance if I have bad credit?

Our panel of over 32 lenders will finance all nearly new and used cars, so whatever you are planning to buy, give us a call on 01279 927003.

## Do I need a deposit?

No you don’t need a deposit! No deposit car finance is an affordable way to upgrade your car without a substantial upfront payment and at Taylor Made Car Finance we know that for many people, saving up thousands of pounds for a deposit isn’t always possible.

In addition, for a large number of motorists, a car is an essential, not a luxury, particularly if they need it to get to work. That’s why we work with several specialist lenders who are able to offer no deposit car finance.

If your circumstances are such that it’s just not practical to manage without a car, or keep your current one on the road until you’ve saved a sufficient deposit, our providers will usually be able to offer you a suitable no deposit choice.

## How does it work?

Applying for no deposit car finance with Tailor Made Car Finance is very easy. Simply fill out our application form and we’ll quickly provide you with a no-obligation quote.

At this stage we will only carry a soft search to see if you’re eligible, This process will not affect your credit score and we’ll only use this information to match you to a lender that is most likely to accept you for a no deposit car finance product.
This will help you avoid multiple applications in a short period, multiple applications can show lenders signs of desperation and significantly reduce your chances of being accepted.

If you don’t have a perfect credit score, don’t worry, we’ll work with you to find a solution best suited to your individual circumstances. We work with many lenders who specialise in poor credit car finance and even if you’ve had CCJs or have poor credit we may still be able to find you no deposit car finance.

## Car Finance with no deposit – WHAT’S THE CATCH?

No deposit car finance makes getting a new car more affordable and the car you’ve been dreaming of may be within reach.

With no deposit, you won’t have paid anything towards the cost of the car until you start making payments and thus your monthly payments will be higher than it would have been if you had put down a deposit.

The longer the repayment term, the lower the monthly payments are and you can choose a term that suits your monthly budget and we’ll search our panel of lenders to find you the best available deal based on your circumstances.

Without any deposit, you will pay more interest as you will be borrowing the full cost of the car but you have the benefit of driving away from the car lot without having to pay anything until your first instalment.

## What else should I think about when considering Car Finance?

If you are thinking of opting for a no deposit financing choice, it’s worth considering the following questions:

- What’s the rate of interest like?
- Can I afford the repayments on my income? Particularly if you haven’t been able to save, it’s worth looking closely at your budget to identify how you’re going to find the money to make your repayments.
- Is now the right time to buy a car?

We are always happy to help when it comes to explaining the various pros and cons of the no deposit car finance. In some cases it may be more cost-effective to try and save a little first for an initial down payment; for some individuals, a no deposit option is going to be the most economical option for their needs. We offer “no deposit” finance from a range of reputable lenders, giving you access to a good selection of high-quality financing opportunities.

## How do I choose the right finance for me?

The best starting point is to set out:

- How much you can afford to borrow and, therefore, pay back every month.
- How much you want to borrow.
- How long do you want to keep the car.
- Find out what your credit history is.
- Do you have any savings that can be used as a deposit?
- Are you likely to change your car within the next three years?
- Are you buying your new car through a private sale or through a reputable UK dealership?

The answer to each of these points will determine the nature of your car loan and the chances of your application being accepted.

## What documentation do I need?

Essentially, lenders are looking for proof that you are a good credit risk or, at least, you’ll be able to repay the approved loan amount. They will request particular pieces of documentation; they’ll access information held by 3rd parties and they’ll check any employment references you provide.

#### Below is a checklist to get you started:

1. Identification: You will need to provide your full name (and your previous name(s) if you have changed it), your date of birth, marital status, residential status (i.e. whether you are renting, living with parents or a homeowner) along with your full address history for, at least, the last 3 years. Most finance companies will ask you to prove your residence for up to 2 separate addresses. This can be in the form of a utility bill (where you are named on the bill), and/or bank statements (although some forms are not accepted so you should check with the finance company what they will and will not accept). These individual pieces of documentation usually need to be dated within the last three months. Otherwise, your application will be rejected.

3. Driver’s License: Most finance companies will automatically reject an application if you don’t have a driver’s licence. After all, it is illegal to take finance out for someone else. If you have lost your licence or it’s been sent back to the DVLA for penalties to be added then you will need to provide additional personal identification. This is usually a passport or a similar form of ID. The car dealer will be able to tell you what their finance company requires. The finance company will also contact the DVLA to confirm that you do actually have a driver’s licence.5. Vehicle information: If you’re buying a new car, you will need the dealer sheet or buyer’s order, which includes the purchase price, vehicle identification number, year, make and model. If you’re buying a used car, get the above information from the seller, along with the car’s mileage, original title and disclosure of any liens on the car.

2. Employment Details and Proof of Income: You will need to provide your full name (and your previous name(s) if you have changed it), your date of birth, marital status, residential status (i.e. whether you are renting, living with parents or a homeowner) along with your full address history for, at least, the last 3 years. Most finance companies will ask you to prove your residence for up to 2 separate addresses. This can be in the form of a utility bill (where you are named on the bill), and/or bank statements (although some forms are not accepted so you should check with the finance company what they will and will not accept). These individual pieces of documentation usually need to be dated within the last three months. Otherwise, your application will be rejected.

4. Vehicle information: If you’re buying a new car, you will need the dealer sheet or buyer’s order, which includes the purchase price, vehicle identification number, year, make and model. If you’re buying a used car, get the above information from the seller, along with the car’s mileage, original title and disclosure of any liens on the car.
5. Bank Details: You need to provide the bank details for the account that you will be using for your monthly repayments. You will need to confirm your account number, sort code and the address of your branch. The account should be in your name or jointly in your name.

## Cut out the hassle

Applying wont effect your credit score.

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