When it comes to purchasing a car, understanding the concept of pre-approval for car finance can be a game-changer, especially if you’ve had financial hiccups in the past. At Marsh Finance, we’re here to demystify what it means to be pre-approved for a car loan and how this step can put you in the driver’s seat of your car-buying journey.
What Does Pre-Approved Mean in Car Finance?
Pre-approval is an initial green light from a lender indicating that you could be eligible for car finance. It’s a preliminary stage where we evaluate your creditworthiness based on a soft credit check. This process doesn’t impact your credit score or leave a lasting mark on your credit report. It simply allows us to gauge your financial situation, how you manage existing loans and your repayment history.
Is Pre-Approval a Guarantee for a Car Loan?
It’s important to understand that being pre-approved doesn’t mean you’re guaranteed the loan. Pre-approval is essentially a conditional approval based on the information initially provided. It’s a positive first step, but further checks and verifications are required before final approval and loan disbursement.
The Journey from Pre-Approval to Car Loan Approval
It takes just 30 seconds to find out if you’re pre-approved for car finance with Marsh, and it doesn’t impact your credit score – click here to check if you’re pre-approved!
Once pre-approved, you’ll engage with our dedicated account managers to explore the suitable finance options. It’s at this stage that we delve deeper into your financial situation. Only when you select an option and decide to proceed do we conduct a hard credit check. This check is more comprehensive and is recorded on your credit file, visible to other lenders.
How Does a Credit Check Fit into Car Finance?
A credit check is an integral part of the car finance process. It helps us understand your financial behaviour, reliability as a borrower, and your likelihood of keeping up with repayments. While your credit score is a crucial factor, it’s not the only one.
We also consider:
- Your age
- Your income
- Electoral roll information
- Current financial commitments and debts
- Repayment history
- Loan amount and repayment period
All these factors collectively help in making an informed decision about your car loan application.
Want to learn more about the role of credit checks in the car finance application process? Click here.
Can You Get Car Finance with Bad Credit?
Yes, even if your credit score isn’t perfect, car finance can still be within reach. At Marsh Finance, we recognise that credit scores can vary greatly. That’s why we offer solutions for those with good, bad, or average credit scores.
Improving Your Credit Score
Your credit score is dynamic, meaning you have the power to improve it. By managing your finances responsibly and making timely repayments, you can positively influence your credit score over time. We’ve compiled some handy tips on how to get your credit score in tip top condition – click here to check it out.
Applying for Car Finance With Marsh Finance
Ready to apply for car finance? At Marsh Finance, we make it easy and straightforward. Our 30-second pre-approval process is a no-obligation, hassle-free way to start your car finance journey. It’s designed to give you an idea of your eligibility without affecting your credit score.
Finance is subject to status
Understanding pre-approval in car finance is crucial in navigating your path to a new vehicle. It’s a beneficial first step in assessing your eligibility for a car loan, especially for those with varied credit histories. At Marsh Finance, we’re committed to helping you find the right car finance option tailored to your unique financial circumstances. Start your journey today and drive towards your dream car with confidence and clarity. 🚗💡💳
Rates from 12.9%
Representative example: borrowing £10,000 over 60 Months with a representative of 23.0% APR, an annual interest rate of 23.0% (fixed) and a deposit of £0.00, the amount payable would be 59 repayments of £269.58 per month, with one final repayment of £279.58 (which includes the option to purchase fee of £10.00), with a total cost of credit of £6,184.80 and a total amount payable of £16,184.80. Marsh Finance Limited are a lender, not a broker.
Marsh Finance Limited are a lender, not a broker.
This is for illustrative purposes only and is not a quote or an offer of finance.