Keeping a perfect credit rating is not easy these days, whether you are an individual or a company but an adverse credit rating may not stand in the way of getting the vehicle finance you need, especially if you apply via one of the growing numbers of brokers specialising in van loans with bad credit.
The process is straightforward and usually starts with a basic online application form – all the standard information will be needed at this stage, name, age, address, income, requirements etc – just enough for the broker to make an in-principle decision which only takes a few hours in many cases.
Your application will then be presented to a panel of specialist lenders who are willing to accept a bad credit history who will then individually decide if they are prepared to lend of not. This panel may consist of a dozen or so or, in some cases, hundreds of lenders. The broker will present your application to the lender(s) they see as most likely to accept based on your situation and their criteria.
The specialist van loans providers will accept applications from those will all sorts of historical credit issues:
Poor Credit, Bad Credit & Non-Status
CCJs, Defaults, Arrears
Self-Employed, New Business, No Accounts
Previously Refused Credit
If you are currently declared bankrupt you will not get a loan though.
You will receive the lending decision and, if everything is OK, very often the broker or representative advisor will make contact at this stage to discuss all aspects of the loan, the offer, the credit limit and to progress the application.
No you’ve got the finance all you need to do is find the van. You may already know the van you want in which case all that’s needed is to provide the details (registration, mileage, price etc) and the broker will coordinate the paperwork between the seller and the lender and organise all the paperwork and transfer of funds.
If you’ve yet to find the van you’ll be given a credit limit to work to which will give you the same power of a cash buyer so shop around, find the right van and enjoy negotiating the right price.
There are several online national databases of vans for sale – your broker may introduce you to a preferred or recommended such list or be able to help in other ways to find the perfect van.
At this stage of the process you may be required to provide some documentation such as proof of income or ID too.
If you know the van you want this whole process can be fast and on average will take just days from start to finish, sometimes less.
When applying for finance via a bad credit van loans broker always check the terms and read the small print – some will charge you a fee but others will not, instead taking a commission from the lender on completion of a finance agreement.
Obviously the broker will only be able to demonstrate a representative example as to cost of a loan – the actual cost will depend on the actual lender – this information should always be provided once available and before any agreement is reached. Keep an eye on interest rates and APR though as a van loan with bad credit may be set at a high level to represent the increased risk to the lender.