How does your credit rating affect your vehicle financing?

How does your credit rating affect your vehicle financing?

By | 2016-09-27T11:14:10+00:00 10 October 2016|Blog|

If you’ve tried buying a car while blacklisted, you will know that vehicle financing isn’t easy to achieve if your credit rating isn’t great. Vehicle financing in South Africa has become quite strict as a result of the Credit Act and in order to buy a vehicle that is financed by a bank or institution, you will need to meet with strict requirements first.

A poor credit rating can affect your vehicle financing in the following ways:

  • Being denied vehicle finance or only being approved for very small / insufficient finance amounts.
  • Higher interest rate which in turn leads to higher monthly premiums and higher insurance costs too.
  • Stricter vehicle finance terms.

If you’re smart and plan properly, you can acquire vehicle finance through Earn-a-car and earn a better credit rating while paying off your loan. A low credit score is based on how you handle your existing accounts. If you take the time to pay your accounts in full and on or before time every month, you can rectify that rating and be able to acquire larger vehicle finance in the future to buy the car of your dreams. Want to earn cash towards your current car’s financing or the deposit on a new car? You can refer clients to us and earn R1000 for every successful deal!

Get car finance with bad credit at Earn-a-car 

Whether you are a first-time car buyer with no credit history or an individual with a bad credit rating / blacklisted, we can help you get the car that you want and can afford at Earn-a-car. For more information and advice, contact us at Earn-a-car via email or telephone today.