Put simply – no. Just as there are no guarantees in life, there are no guarantees in car finance. As such, we would advise you to be very wary of any company that suggests they can guarantee car finance to you. At My Car Credit, we don’t offer any guarantees. However, we always do our absolute best to get you accepted for car finance, so you can buy the car that you want.
The truth about ‘guaranteed car finance’
The reality is that the ‘guaranteed car finance’ claim is often a marketing ploy. The goal is to make you think that you’ll definitely be able to get a loan regardless of your circumstances.
Guaranteed car finance simply doesn’t exist. In fact, there have been laws in place since 2010 which state that making a false or misleading claim around finance guarantees for consumer credit is an offence. Additionally, advertisements that contain just the phrase ‘loan guaranteed’ are also banned. The advert would need to include terms and conditions regarding the individual’s credit status to be allowed.
‘Guaranteed finance’ schemes
Watch out for ‘guaranteed finance’ schemes which are designed to catch you out. A common scheme is to ask for a ‘guaranteed finance enquiry’ fee. Usually this fee and the offer it is meant to guarantee are closely attached to complex small print (i.e. legal jargon). In order to decipher it, you’d need to be a qualified lawyer!
Any finance lender suspected of dealing with customers in this way can end up with a full Financial Conduct Authority (FCA) investigation into their conduct. If upheld, this could lead to them being fined or forced to close.
In summary – almost every guaranteed car finance claim is a scam.
How car finance agreements really work
Car finance agreements are purely based on your individual circumstances and your credit profile. This means that there will inevitably be some individuals who aren’t eligible for car finance. We’ll go out of our way to help you get approved for car finance. However, it’s our lenders that make the final decision after fully assessing your affordability and credit profile.
A credit profile is a document that contains information regarding your creditworthiness and credit history. Your credit profile includes: what types of credit you hold, the length of time your credit accounts have been open for, if you made your repayments on time, and any applications for new credit. Lenders are far less likely to lend you money if they are not convinced you can repay them. This would naturally be bad business for them. In addition, it is not ethical for them to lend money that could push you into financial difficulties.
A more ethical solution to car finance
At My Car Credit, we only carry out a ‘soft search’ when you first apply with us. This means that there will be no footprint or indication on your credit file that a search has been carried out. Once you have made an application with us and a ‘soft search’ has been performed, we’ll know if you’ll get accepted by one of our lenders on our extensive panel.
The benefit of this approach means that should you unfortunately get declined, your credit profile will not be affected.
How to get accepted for car finance
Whilst we cannot guarantee car finance, there are ways you can improve your chances of getting accepted for car finance.
- Improve and maintain your credit score
Your credit score is the main factor that is assessed when you apply for a car loan. This means it’s important you keep your score as high as possible. There are many things you can do to improve your credit score. Not only will a good credit score improve your chance of an acceptance but you will also get a better rate. However, don’t lose heart if you have a low credit sore as there are still plenty of options.
- Put down a deposit on your car loan
Paying an upfront deposit on your car loan makes you less of a risk to the lender. Not only is the amount owed on the vehicle reduced but your monthly payments will also come down. Once again, don’t despair if you can’t pay a deposit. There are plenty of no deposit car finance options available!
- Opt for a Guarantor Loan
A Guarantor Loan is where a third party (usually a family member or close friend) agrees to pay your loan if you are unable to. This lowers the risk for the lender, improving your chances of an acceptance. It can also lower the rate you are offered. Guarantor Loans are a big responsibility for both parties and shouldn’t be entered into lightly. Make sure you are clear on how a Guarantor Loan works before proceeding.
What we can offer
My Car Credit has access to a large panel of lenders. These have all been vetted and approved by the FCA for their trustworthy operations and the quality of their service.
Our large network of lenders increases the chances of you getting accepted, across all credit profiles (from poor to excellent). Our unique underwriting policy prioritises the best outcome for you, the customer. This ensures we give you the best available deal on car finance for your circumstances.
You can trust My Car Credit because we are part of Evolution Funding, the UK’s largest motor finance broker. We are proud to be award-winning market leaders in the industry. We have helped thousands of customers get the car they want; at the price they can afford. We are also regulated and monitored by the Financial Conduct Authority (FCA). In conclusion, you can borrow for your next car safe in the knowledge that we are professional and reputable.
Rates from 6.9% APR. Representative APR 13.9%
Evolution Funding Ltd T/A My Car Credit
Require more help?
Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!