Bad credit after leaving work? Perhaps car leasing is the answer?
In the present day, its sometimes very difficult to maintain all of the monthly payments when one person leaves work. Single income households are quite difficult to manage when you’re not used to it!
In many cases, this can result in a poor credit rating, which ultimately results in being refused finance. This can be a very disheartening, but there are companies out there who are specifically set up to handle people with bad credit.
In this example we’re discussing bad credit car leasing. It’s a simple process, which can be likened to a long term rental agreement. The basic idea is, you put down a minimal initial rental and then pay a monthly fee for the use of the vehicle.
For all general purposes, its very similar to actually buying the car.
You still insure it in your name, fuel and maintain it. You’re just no longer responsible for the resale value or deprecation, should that occur.
Bad credit car leasing companies tend to not base the entire decision on your credit report. They’re specifically setup to deal with people who have had previous problems, so basing the entire decision on a credit report score would be fairly short sighted. Instead, they will look at your combined family affordability, how long you have lived at your current address and so on.
They will be looking to ensure that the contract completes without default, and manage their asset (a car in this case) efficiently. So in other words, they won’t give you a contract you cannot afford, this serves no real benefit to anyone involved. Instead, they will look at your income and outgoings, the length of time you have lived at your address and other aspects which might increase or lower the risk.
Like anything, it’s important to shop around, and make sure you understand the entire process before making an application. Car leasing companies are now very heavily regulated and as such should be very clear as to the costs (including any hidden fees) up front. Most importantly, ensure you’re not over-committing by entering into a lease contract.