Glossary
Apr
The annual rate that is charged for borrowing, expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction.
Bad Credit Car Loan
Have you had, or previously had poor or a blemished credit rating? Then look no further for your car loan. We have specialised for many years in obtaining car loans for people who have been refused car credit in the past due to bad credit. So if you have CCJ’s, Arrears or Defaults this will not stop you from owning the car of your dreams.
We have a large panel of bad credit car loan lenders to suit all our customer’s needs and individual circumstances while getting you the best rates available on the market. Look at the benefits of using Car Credit Converters for your car loan.
- No Deposit
- Any Dealer Of Your Choice
- Great Rates
- Fast Efficient Service
Car Credit / Yes Car Credit
Generally “Car Credit” describes exactly the same type of finance agreement as Car Finance, meaning an on trade premises finance agreement used to purchase a new or used vehicle.
The use of the word Car & Credit has no doubt increased due to a company that traded for some time as “Yes Car Credit” selling vehicles to customers with poor or low credit ratings.
Yes Car Credit was subsequently exposed by the BBC’s whistleblower program for selling vehicles that were less than perfect and using practices that were not entirely professional.
Thankfully Yes Car Credit is no longer trading from its branches and Car Credit Converters is available to help customers who may have less than perfect credit ratings, buy the car of their choice from the dealer of their choice, with excellent customer service and some of the best rates available in the market place.
Car Finance
“Car Finance” is probably the term most people associate when buying a new or used car. Traditionally customers would take finance from the dealer where they were purchasing the vehicle from. However in the Internet age more & more customer have need of specialist facilities whether they have a poor credit rating or are looking for the best rates available in the market place. Hence the popularity of Car Credit Converters!
Usually this term is used to describe a Hire Purchase agreement where a loan is agreed for the purchase of a motor vehicle. Loans are secured only on the vehicle and not your property or other possessions.
Car Loan
Car Loan is a more common term for a loan specifically for the purchase of a car outside a dealership. Most people would consider getting a loan as opposed to a normal car finance facility if they are unable to meet the stringent criteria offered by prime finance facilities.
However due to the current market place, banks & other loan providers are getting more and more choosy regarding the customers they wish to lend money to. Hence the popularity of Car Credit Converters specialising in helping customers buy their dream vehicle with a great range of finance facilities available.
Car Credit Converters offers low cost car loans for customers with excellent and poor credit ratings. Rates are from 9.9% apr up to 34.7% apr for a customer with credit problems. However our typical apr is 23.9%.
Consumer Credit Licence
The Consumer Credit Act 1974 requires most businesses that offer goods or services on credit or lend money to consumers to be licensed by the OFT. Trading without a licensing arrangement is a criminal offence and can result in a fine and/or imprisonment.
The Act also requires certain credit and hire arrangements to be set out in a particular way and to contain certain information.
Nearly all quality motor dealers hold a Consumer Credit Licence. This allows you to sign for Car Finance, Car Credit or Car Loans on those premises.
Flat Rate
A term used with Hire purchase agreements specifically Car Finance or Car Credit to signify the flat amount of interest charged per annum. This rate remains the same regardless of the quantity purchased or other considerations such as fluctuating base rates. Many other products are sold at variable rates that may decline such as some Car Loans on variable rates of interest.
Gap Insurance
GAP insurance can provide valuable protection during the early years of your car's life if you have Car Finance, Car Credit or a Car Loan or even if you have bought the car for cash.
If a loss occurs, GAP insurance will pay the difference between the actual cash value of the vehicle and the current outstanding balance on your loan or finance. Gap Insurance protects your car finance or loan. Sometimes it will also pay your excess on you vehicle Insurance.
If your vehicle has been written off or becomes a total loss, either by accident, theft, fire, flood or vandalism your insurance company typically pays the actual cash value. That may be less than its actual retail value. It is often considerably less than the actual amount you still owe on your loan or finance agreement.
The amount between your insurance payment and either the purchase price or the amount you owe the finance company is the “gap” you can be left owing.
Car credit Converters Ltd offer both GAP insurance from our panel of lenders and also from our sister company www.directgap.co.uk. Please feel free to visit for great quality GAP products at the lowest prices.
Guaranteed Car Finance
Car Credit Converters are one of the UK’s leading guaranteed car finance specialists. We specialise in obtaining car finance for people who have had problems in the past. If you have had Defaults or CCJ’s then we can help.
Car Credit Converters prides itself on having the most professional and efficient staff in the industry and aim to gain your acceptance for Car Credit and then pay your car finance deal out as fast as possible.
We generally require no deposit and let you choose your car from any dealership in the UK. Our motto is “You Find The Car We Find The Money”. We search our extensive panel of car loan and car finance funders to get you the best deal available. As we are one of the longest established brokers we can offer some great rates even on, Guaranteed Car Finance Deals.
We promise that over 90% of qualifying car finance applications will be accepted guaranteed! This may be subject to the vehicle or deposit available as finance may be offered by Car Credit Converters Ltd.
Hire Purchase
When using the term “car finance” this is normally what is implied. With a Hire Purchase agreement you borrow an agreed sum over an agreed term. Repayments are generally made monthly and include a repayment of both capital and interest. The loan is also normally secured on the funded vehicle. Once all repayments have been made the title of the vehicle passes to the customer. Hire Purchase agreements can also be settled early by requesting a settlement figure from the funder.
Part Exchange
The term used to describe the vehicle you agree to exchange for a part of the total value of the car you are purchasing.
Secured Loan
A loan in which a borrower pledges an asset such as a home or car that may be sold if the borrower is unable to repay the loan. Car Credit Converters Ltd only provides loans that are secured on the vehicle.
Unsecured Loan, Unsecured Car Loans
An unsecured loan is a loan where the lender has no entitlement to any of the borrower's assets in the event of the borrower failing to make the loan repayments. Such a loan normally carries a higher interest rate than a secured loan.
Used Car Loan
Personal loan, Car Finance, Bad Credit Car Loan or New Car Loan to purchase a car a loan that establishes consumer credit that is granted for personal use; usually unsecured but can be secured on the vehicle and based on the borrower's integrity and ability to pay.
