Finance if you live with your parents

If you are looking for car finance or your next car and you live with your parents, you may be wondering if you are eligible. The good news is, you probably are, but there are some extra things to take into consideration.

Being accepted for finance is based on your credit score, and while living at home won’t harm it, it won’t be helping it either. This means your credit history could be limited, and lenders will be less likely to offer finance to you.

There are things you can do to improve your credit score, such as taking out smaller finance or credit agreements and making sure you always pay on time. Something else you can do is to enrol on the electoral register, if you haven’t already.

It’s not all bad news though, you still have a chance of being accepted for finance and some lenders work exclusively with those who have a limited credit history.

Your parents can co-sign a loan or credit card with you if you want some help working it all out. However, car finance has to be in your name, and you cannot take it out on behalf of someone else.

Another thing you can do is to increase your initial deposit, which will give you a better chance of being approved.

You should look out for the APR percentage on the finance agreements you are offered, as these can vary depending on the lender and your circumstances. Living with your parents of course has its financial benefits and it is still possible to obtain car finance. The best thing to do is explore the options and if you are at all unsure, speak to an expert who will be able to answer your questions.

If you do want to find out more about car finance in Liverpool, get in touch with one of the finance experts at Wavertree Car Centre.