High Earners Affected By Restricted Car Finance Lending

According to The Funding Corporation, a specialist automobile finance group, mainstream lenders are now declining many Brits considered high earners. The group found and an increasing number of people are now considered rich when it comes to salary but poor in terms of credit. Often, these folks are denied car loans due to only minor credit blemishes.

No longer is bad credit car finance restricted to people with low wages and a poor history of repayment. Just a few missed credit card payments several years ago can be enough for a professional to be rejected for bank financing.

Some individuals do not become aware of the situation until they purchase a second car because their first car is often supplied by the employer.

Norman Beaumont is the ACF Car Finance Limited sales and marketing director. His organization speaks with people every day whose incomes easily qualify them for a car loan but who have been denied credit by a finance house or bank.

Credit blemishes that were ignored a few years ago are now focused on by many lenders. Many of the mainstream lenders want the borrowing record to be “spotless,” said Mr. Beaumont.

ACF is one organization that uses lenders that have strict lending criteria but also review the reason for a credit blemish. In some cases, the cause may be a one-time occurrence, not an indication of a chronic problem with repayment.

Companies like ACF operate national networks of dealerships that directly supply cars to customers who face difficulty getting car loans.

Many professionals are experiencing the shock of poor credit. They are highly regarded professionally so the fact that their credit status is low is surprising. Mr. Beaumont said that they may take comfort in knowing that refusals have become commonplace.

Lenders specializing in bad credit car finance exist to help individuals who are rejected for credit elsewhere.