Top Notch Cars Provide Bespoke Finance for Used Cars
If you have read the 5 step guide to building a credit profile page you will know the building blocks for starting an account. The next step is applying for that loan or Hire purchase agreement. It’s a very simple process to begin with. Most companies will have the facility to submit an application through an internet web site. They will need some of your personal details such as name, address, date of birth, work location, your bank account and sort code. This is all that’s required to get a decision from a loan or finance company. Most large companies use a credit scoring facility that has the ability to take your details, match it with your credit profile and make a decision without the need for human intervention. An instant decision. If the information on your credit profile does not meet the lenders auto-accept criteria it will often be passed to a human to make the decision. It can take up to an hour for a decision to be made if a human looks at your application.
If your application is accepted then you need do no more. If your application is declined, very often lenders will simply say their decision was due to information held on your credit profile. That’s as far as they will go in explaining their decision.
Our Bespoke Finance Service
Top Notch Cars provide a bespoke service. At your request we will go through your credit profile with you step by step.
Christian is a nominated person representing a fully FCA authorised finance company and is the finance advisor at Top Notch Cars. They can advise on debt adjusting and have debt counseling included within the authorisation. Rest assured the information you are being given is from a qualified and experienced person.
If you have never seen your profile then it could be that you are unaware of the rates and deals available to you. When we review your credit profile we can give our opinion on the rate of interest you can expect to pay.
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Car Finance Explained
There are 3 different credit profile categories that a person can fall into. Your credit profile will be categorised as prime, semi prime and sub prime.
Prime Credit Profile
A prime profile can demand the best rates available on the market. Most prime companies offer on line accounts where you can overpay, reduce the term of the contract and change payment dates at the click of a button. You can keep up to date on payment history and see how much is outstanding at any time.
Prime lenders will often have an on line agreement document which gives you the ability to “click and drive away”. They can check your driving licence is valid and residential address is matched to the information you provided at point of application. In the majority of cases there is no need to provide any additional proofs.
Prime profiles will typically have: every personal loan agreement getting paid in full every month without being late. Mortgage payments paid in full and up to date. Registered at the current residential address on the voters role. Bank accounts with positive balances. Monthly mobile phone bills paid up to date. Credit cards below their maximum limit and with AT LEAST the minimum payment being made every month. No previous county court judgments and no defaults on any previous payments. (Default is classed as a payment which has fallen 6 months behind from its due date)
Semi Prime Credit Profile
Semi Prime Profiles are those that do not quite meet the strict underwriting criteria of the prime lenders but are still good.
The semi prime finance market has only recently come back into recognition as many of the companies that offered loans to semi prime credit profiles lost their funding and went out of business. This was due to the global financial downturn in 2008 and there are now strict new lending regulations which are now in place following EU legislation regarding responsible lending.
Most semi prime lending rates are higher than prime but considerably lower than sub prime. Semi prime finance companies tend to be much smaller than the prime finance companies due to the individuality of every credit profile.
There is no computer that can decide if a proposal is to be accepted and all applications are dealt with by real people on a person by person approach. A basic rule of thumb is a person who is willing to pay or trying to pay but is tight to the buffers will be a semi prime profile.
Semi prime profiles will typically have some form of entry listed but usually less credit than a prime profile. More often than not a semi prime profile will be the start to getting a prime profile. There may be a store credit card or catalogue mail order which is getting paid monthly. There may be a current car finance agreement in place which has had a few payments missed and have never caught up BUT are still making payments. Not registered on the voters role but can prove where they live with proofs such as utility bills etc. Outstanding default for a small amount and good reason for not paying it.
A very important point to make is a profile with no credit entry can be semi prime. If you have a reasonable deposit and have the relevant proofs we may be able to get a great deal for you at Top Notch Cars.
Sub Prime Credit Profile
Sub Prime Profiles are profiles which have been rejected by both prime and semi prime finance companies.
It could be said that if you have a bad credit profile then the sub prime lenders are the only option.
Pre 2008 this segment of the finance market was flooded with providers but even the biggest companies decided that the market was no longer viable with all the new regulations coming into effect.
First Response Finance and Advantage finance are the two remaining companies left in the market. Both companies accept ex bankrupt clients along with previous defaults and county court judgments which are commonly known as CCJ’s.
There must be a willingness to pay if you are to be accepted and this must be reflected within your credit report. It’s likely that proofs such as bank statements and tenancy contracts will need to be presented at the time of application.
Throughout his career Christian has battled to achieve trust and improve clarity within the car industry. He has accumulated considerable praise from the very people who have purchased vehicles from him. To read about their experiences, search for Top Notch Cars Thetford on Google. To follow Christian's blog join the Top Notch Cars Facebook page.