David Allan

Experly compared by David Allan

Products Updated May 9, 2018

Van Loans With Bad Credit

If you require a loan or finance to buy a new van and have a history of bad or adverse credit then our experts can help. We have access to a range of both unsecured and guarantor lenders who are willing to finance commercial vans to people with an adverse credit history or low credit score.

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All credit types
Rated 5.0/ 5

CarFinance247 Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

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Loan Amount
£1,000 - £250,000

Representative APR
6.9%

Loan Term
1 - 7 years

Loan Type
Vehicle Finance Broker

Status
Homeowners & Tenants

Finance for cars, motorbikes, vans and motorhomes. We make the process hassle-free & provide the customers with a helping hand throughout. Our aim is to get the best possible finance deal, whilst providing an efficient service of the highest quality.

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Poor Credit
Rated 5/ 5

Uk Credit Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

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  • EXPERTISE & KNOWLEDGE
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Loan Amount
£1,000 - £10,000

Representative APR
39.9%

Loan Term
1 - 5 years

Loan Type
Guarantor Loan

Status
Homeowners & Tenants

Trusted, simple guarantor loans from £1,000 to £10,000. With the help of a friend or relative to guarantee your loan UK Credit could get you the cash you need.

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All credit types
Rated 5/ 5

Trust Two Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

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  • VALUE
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Loan Amount
£500 - £10,000

Representative APR
43.8%%

Loan Term
1 - 5 years

Loan Type
Guarantor Loan

Status
Homeowners & Tenants

With Trust Two you could borrow up to £10,000, in your own name, by asking a relative or friend to guarantee that you'll repay it. Apply online and, once you and your Guarantor are approved, on average you'll have the money within 3 days.

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Poor Credit
Rated 5/ 5

Avant Credit Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£1,000 - £20,000

Representative APR
42.5%

Loan Term
1 - 5 years

Loan Type
Poor Credit Lender

Status
Homeowners & Tenants

AvantCredit offers online unsecured personal loans of £1000 to £20,000 from 12 - 60 months with fixed monthly payments. AvantCredit understands that people have a less than perfect credit history and a guarantor is not required and you don't need to be a homeowner.

Getting a van loan with bad credit

Finance options to buy a van with poor credit

Finance options to buy a van with poor credit

Getting a loan if you have bad credit can be difficult however, it is certainly not impossible. The key thing you have to do when looking for a loan when you have bad credit is to fully appreciate the repayments you are going to make and be able to budget for them. This means that before you decide on a loan, you should take plenty of time to look at all of the loans available as they do vary significantly.

What are the advantages of getting a van loan with bad credit

Clearly the main advantage of a bad credit loan to buy a van is that you are actually able to get the money you need in order to make the purchase as it would not be possible through a mainstream lender. This means that you have an additional asset with which to carry out your work and can therefore potentially maintain a better income. Another advantage that you need to be aware of is that you can actually start to rebuild your credit rating through the successful repayment of your bad credit loan. Just because it is a bad credit loan doesn’t mean it doesn’t count towards your credit rating, so ensuring that your payments are made on time will increase your rating over time.

The disadvantages

You will find that the loan amounts you are able to get on a bad credit loan are not as large as those you could get with a personal loan. However you can potentially get up to £10000, which may be enough for you to make your purchase. The other major disadvantage is that you will pay very high interest rates compared to a mainstream loan. This is because for lenders you represent a high risk, no matter what the reason for your credit rating, because they do not have the reassurance that you will be able to make all of your repayments. This also means that it is quite high risk for you as well as you need to be able to make sure you are in a position to be able to make the repayments otherwise you could be rejected for a bad credit loan as well.

Are there any alternatives?

Get the loan you need with help from a guarantor

Get the van loan you need with help from a guarantor

If you need to get a larger loan, or you want to be able to take advantage of lower interest rates you could potentially take out a guarantor loan to buy a van for up to £7500. In this case you will need to find someone who is willing to be your guarantor. What this means is that they will guarantee your loan will be repaid if you fail to make all of your repayments. If you make all of your payments then your guarantor will never be affected by the process, however you need to bear in mind that if you do end up not being able to make payments that they will be liable for the whole of the rest of the debt.

 

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