Usually, buying a car with a bad credit history is terribly difficult, if not impossible. This is because if lenders spot defaults, judgments, debt review, and the like on your credit report, they’ll be rightfully nervous about lending you money. What if, they’ll think, person A doesn’t pay me back?
Conversely, creditors are very likely to sell cars to people with good credit scores– think 650 and higher. That’s because they can assume with surety that they won’t default. People with good credit scores usually pay creditors back in full and on time, which is indicated on their credit report.
Of course, this is the case if you need car finance. You can buy a car in cash (without getting a loan) if you have a bad credit score with no qualms.
Cars and other motor vehicles are crucial for things like getting to work and back and picking up children from school. Without having a reliable car, you may be forced to take public transport like taxis and busses: not exactly the most reliable medium of travel in South Africa.
Not all is lost! There are ways you can buy a car with a bad credit score, like having a friend or family co-sign for you or paying in cash. Alternatively, you could empower yourself and prepare for the future by fixing your bad credit score. Do this by maintaining a low credit utilisation rate (how much credit you have compared to what’s available), paying on time and in full, and removing derogatory items like judgments and debt review from your report.
Get a FREE credit check that won’t harm your score with Credit Boost! We’ve partnered with XDS, South Africa’s local leading credit bureau, to provide you with a fast and secure credit check. All you need is your ID number and contact details.
Ready to take control? Contact Credit Boost today or get a free credit check now.