A car can be vital for many families, especially those who live in rural areas. Access to or ownership of a vehicle is also necessary for countless workers. If you need to buy a car or replace a broken or old model but have a bad credit rating, it’s important to know there are financing options available.

The good news is that it is possible to borrow money to buy a car even if you have a poor credit history. The main requirements are that you are between the ages of 21 and 80, that you are a homeowner and are employed.

Bad credit rating loans do attract higher APRs than loans available to people with good scores, but they are still a great way to finance your new vehicle. Here are a few tips before securing a loan:

  • Look out for loans that are flexible and will allow you to overpay if you can so you can clear your debt more quickly.
  • If you want to keep monthly repayments down, spread the loan over a longer period of time, but if your priority is to clear your debt more quickly then you can opt for a shorter term but you will have larger monthly repayments.
  • However you do it, make sure, so far as is reasonably possible, that you will be able to afford to make your loan payments, as failure to do so can have serious consequences.

Bad credit rating loans are generally more expensive, but the exact APR will depend on your recent credit history. It will be far lower for people who have not missed payments on their mortgage or credit cards in the last six months than for those who have missed a mortgage payment in the last three months.

Always use the helpful online loan calculators to work out your options and remember to take into account any fees that may be applied on your borrowing. Once you have secured your loan you can get on with purchasing your new vehicle.

Evolution Money has a more rounded approach to your finances. The company’s loan service can be tailored to suit your needs, taking into account any bad credit history. Evolution Money focuses on your current financial circumstances. The firm is interested in your ability to pay now, not whatever problems you had in the past.