4 Steps To Improve Your Chances Of Getting Motorhome Finance With Bad Credit
With stunning camping sites like Snowdonia, Skye and the Peak District on offer, as many as 15 thousand new motorhomes are registered in the UK each year. We just can’t get enough of a peaceful life on the road. After all, what could be better than spending your weekends and even the odd evening escaping the grind of daily life from the comfort of a great camper?
The only trouble is that, with some new motorhomes costing as much as £80,000, most of us can only dream of buying a motorhome upfront. Alternative options like motorhome finance are, therefore, essential for ensuring that many of us can still achieve our motorhome dreams.
Yet, as with any other kind of finance, seeking approval here can be tricky if you have bad credit. That doesn’t necessarily mean that you can’t still pursue motorhome ownership. But it does mean that you’ll need to take the following steps to secure much-needed motorhome funding despite the blight of bad credit.
# 1 – Do what you can to improve your credit score
While bad credit isn’t the be-all and end-all of securing motorhome financing, the process will inevitably be harder the worse your credit score is. You’ll certainly struggle to access great deals and choices if your credit rating is at rock bottom.
While it takes time to build your credit score back up, there are small steps you can take before seeking motorhome financing that could still improve your prospects. Steps especially worth taking include –
- Check for and address any errors on your credit report
- Update details (name, address) on your report
- Increase payments on loans, credit cards, etc.
- Find ways to build your credit, such as using a regularly paid credit card
# 2 – Understand your financing options
There’s more than one way to finance a motorhome, and understanding your options allows you to settle on the best loan despite bad credit. Admittedly, your options may be more limited depending on your credit situation. That said, motorhome financing is generally available across three types of arrangement, which are –
- Hire Purchase (HP): Hire purchase loans are a popular borrowing option that gives users ten years to repay their lender, after which time they own their motorhome.
- Personal loan: Personal loans offer a more generalised form of finance that’s not linked specifically to your motorhome. Lending like this allows for selling or part-exchanging a motorhome as required.
- Personal contract purchase (PCP): PCP provides lower repayments and the flexibility to either return your motorhome at the end of an agreement or pay off any remaining balance to secure ownership.
Where bad credit is concerned, flexible options like personal loans may be preferable to keep repayments at a more reasonable rate. Speaking to a motorhome financing company with experience in bad credit lending is the best way to choose the ideal type of loan for your situation and credit rating.
# 3 – Consider joint hire
Most motorhome loans don’t require a guarantor. That’s great news in some ways, but it also means that your chances of approval rest solely on your bad credit rating. Unless you consider a joint hire.
Joint hires are offered by most reputable motorhome financing companies, and provide the opportunity to take out a joint loan with another person. This option is especially ideal for couples seeking a motorhome, as joint hires are a great way to prove affordability, even if one or both of you have a slightly shaky credit rating.
Your options and available lending amounts will certainly increase with the power of two credit ratings rather than one.
# 4 – Choose a specialist lender
Securing motorhome financing with bad credit is inevitably going to be a little harder. By working with a specialist lender that has experience in motorhome loans bad credit, you can significantly increase your chances of securing your desired funding in a loan package that suits you.
That’s because experienced lenders like our team here at Auto Finance Online know the steps and stages necessary to secure motorhome finance despite bad credit.
Our trusted advisors can also guide you towards the best loan options, the lowest interest rates, and the best possible deals despite credit setbacks. Working with someone who understands bad credit loans can also significantly reduce the stress of this experience, enabling you to more quickly and easily set off in your motorhome at last.
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Lending £15,000 over 7 years with a representative APR of 9.9%, an annual interest rate of 9.9% (Fixed), would cost £244.99 per month, with a total cost of credit of £5,578.77 and a total amount payable of £20,578.77.
Rates may differ as they are dependent on individual circumstances. Subject to status.