Second Chance Finance explained
Are you struggling to get finance for a car? Second chance finance might be just the thing you need. Second chance finance is just that – a second chance after financial troubles or bankruptcy.
There are lots of reasons why you might need second chance finance. Perhaps your business had cash flow issues, you were once bankrupt or a serious illness has taken its toll on your finances. Even with a history of defaults you could be eligible for second chance finance.
Second chance finance is provided by specialist finance companies who want to provide finance to people just like you. They have chosen the second chance finance niche of the loan market, so they genuinely want to provide you with a loan. Their bottom line relies on second chance finance, so they structure their business to cover the risk that some of their customers might default on their loans. This means that they have to charge a little bit more for second chance finance, but they are still very willing to offer it!
Because not all financiers want to target the second chance finance niche, it can be harder to get finance if you have a poor credit history. This is why your regular bank might be happy to take your savings deposit, but might not want to offer you finance on a car loan. This is where second chance finance comes in.
A finance broker like 360 Financial Services can help find the perfect second chance finance for you. They listen to your situation and using their knowledge of second chance finance providers, they develop a second chance finance solution that you can afford. They use their experience with second chance finance to present your case to the second chance finance companies to encourage an approved loan.
If you think second chance finance might help you buy the car of your dreams, contact 360 Financial Services for a confidential discussion about second chance finance.
The how and where of getting a bad credit loan
Help! I have a bad credit rating!
If you have a bad credit rating, applying for a loan can seem intimidating, frustrating and disappointing!
There are lots of reasons why you might have a bad credit rating. Whether you fell on hard times in the past, had a flatmate who forgot to pay the bills or you were once bankrupt, you are likely to have a bad credit rating but that doesn’t mean you have to miss out on getting a loan. You could be eligible for a bad credit loan.
A bad credit loan is provided by specialist finance companies who have chosen the bad credit niche of the loan market. Providing loans for people with bad credit ratings is their business, so it is in their interest to approve your bad credit loan. To do this they have to charge a little bit more to allow for the risk of some of their loans becoming bad debts. This means the interest rate on a bad credit loan may be a higher than regular loans.
Most big banks don’t offer a bad credit loan so it can be harder to source a bad credit loan compared to regular loans. This is where the expert advice of a finance broker can help. They listen to your situation and using their knowledge of all providers of bad credit loans, they develop a finance solution that you can afford. They use their experience to present your case to the financier to encourage an approved bad credit loan.