If you have a bad credit score rating, then you have probably found it difficult to obtain anything from a cell phone contract to a vehicle loan. Regardless of affordability, regulatory institutions in South Africa have a mandate to only provide credit to people who have a good to fair credit rating.
The good news is that the right rent-to-buy a car finance plan is available to you even if you have a less than stellar credit score rating.
What is a Rent-to-Buy a Car Finance Plan?
A rent-to-buy finance plan is a vehicle that is given to people under specific agreements:
- You will need to pay an upfront deposit and show proof of income,
- You will be paying for the car as if you are renting it,
- But, after the fixed term has passed a portion or all of the money you paid towards renting or leasing the car can be used towards buying it.
This agreement can help your poor credit rating in a number of ways:
- Credit Score
When taking out a loan with a bank, if you are unable to make a payment on your car loan then this would negatively impact your credit score. At Earn-A-Car, you have options, to either trade down and get a vehicle that costs less per month and fits within your budget or discuss alternate repayment options that won’t impact your credit score at all.
- Interest
Another benefit is that there isn’t any interest because you aren’t being loaned money for a car, you are essentially paying a rental fee that will be used towards the purchase of the car at a later stage.
South African legislation entitles you to obtain your credit report free of charge from every credit bureau, namely TransUnion or Clearscore to name a few, every year.
For more information about easy vehicle finance from Earn-A-Car, contact us to find out more about our rent-to-buy financing solutions.
