How car finance works


Get car finance

Get a no deposit car finance approved without affecting your credit score.


Choose your car

Choose any car from any reputable dealer and we will finance it for you.


Delivery or collection

Collect or get the car delivered to you with a 14 day return guarantee.

Car finance calculator for bad credit

Good credit
Bad credit
Amount to borrow:
To repay over:
5 Years
Car finance rate XX% APR
Cost of credit £ XXX
Total repayment £ XX,XX.XX
48 monthly payments of
£ 245 /mo

Representative example - Borrowing £5,500 over 4 years with a representative APR of 19.8%, and a deposit of £0, the amount payable would be £162 per month, with a total cost of credit of £2,282 and a total amount payable of £7,782.

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How does bad credit car finance work?

Bad credit car finance is designed for people with poor credit score to buy a car. As car finance brokers, we understand that everyone has a different credit history. That’s why we can offer car finance for bad credit – even if other lenders have refused you in the past.

Our financing is still applicable if you have an Individual Voluntary Agreement (IVA), a County Court Judgement (CCJ), a previously- declared bankruptcy, or if you are self-employed.

We believe everyone deserves fair and unbiased judgment - so no matter your credit history, we’ll assess every case on its own merits and your individual circumstances.

Can I get car finance with bad credit?

Lenders need to make sure you are the right financial fit to borrow money for a vehicle; thus, they must carry out credit checks. However, if you have a poor credit score or no history at all, it can be difficult to find a lender who will approve your loan.

Yet, it is entirely possible to get poor credit car finance. The Carplus team looks at situations on a case-by-case basis to find the perfect car deal.

How do I apply for bad credit car finance in the UK?

Applying for bad credit car finance with our brokers couldn’t be easier:

  • Complete and submit our online application form.
  • We’ll perform a soft credit check, which will not affect your credit score and will not be marked on your credit report. This will determine if our panel of financial providers can offer you a lending deal.
  • If provisionally accepted, we can discuss your options in more detail. Should you wish to proceed, we will tell you what to do next.

We’ll take care of everything else and get the money to you as soon as possible.

What documents do I need to apply for a bad credit car loan?

If you are interested in obtaining a bad credit car loan, you must submit relevant documents. Our panel of lenders will need to review said documents to ensure that a car finance is right for you. Requirements will vary depending on the lender, but in general, they will usually ask for:

  • Proof of ID
  • Proof of address
  • Proof of income

Depending on the lender you want to apply to, they will let you know the type of documents necessary and what format they need to be provided in.

What can affect the final approval of car finance for bad credit history?

At Carplus, we understand that various circumstances could cause low credit scores, which is why we examine each case on its merits. However, there are still ways to improve your chances of getting approved for a bad credit car finance in the UK.

  1. If you have fallen behind on your credit repayments, do your best to catch up.
  2. If you have an ongoing IVA, try to obtain written confirmation from the insolvency practitioner that they approve of you getting a loan. This will not be necessary if you had a prior IVA that has already been settled.
  3. If you are in bankruptcy, we will not be able to help you obtain car financing. However, we would be happy to give you insight on how to manage your debt and improve your poor credit score. If your bankruptcy has been discharged, we will certainly be able to help you upon application for car financing.
  4. Lastly, even if people with bad credit have an outstanding CCJ in the UK, we will still review their applications and help however we can.

Why use Carplus to apply for car finance with bad credit?

We understand that life is complicated, and not everything goes to plan. That also applies to people’s finances, which means they sometimes need a helping hand obtaining a bad credit car finance.

Cars play a vital role in the daily lives of tens of millions of people, and limited access to a vehicle can affect them in all sorts of ways.

That’s why we are committed to connecting people with bad credit with our established panel of lenders to see if we can find the right deal that matches their situation. It’s a bespoke service tailored to each person’s lifestyle, giving them the best possible chance of finding an affordable package that won’t break the bank.

How do I improve my poor credit score?

Bad credit car finance can be tricky to navigate, but these tips are great ways that people with low credit can improve their chances of getting car finance with bad credit history.

  1. Place a larger deposit. Even though we offer financing with no deposit, by placing one, you’ll be able to reduce your monthly payment plan.
  2. Follow responsible lending practices. You will only receive a car finance that you can safely repay each month throughout the overall term. We’ll calculate car financing by comparing your current monthly expenses to your monthly income.
  3. Set realistic expectations. Before applying with us, you can use our poor credit car finance calculator; enter your income and expenditures, and get an idea of what you can afford to borrow.

How can I improve my chances of securing car finance?

Two common methods used by customers to improve their chances of securing car finance is either through offering a higher deposit or using a guarantor.

Most customers will be required to put down a deposit to purchase a car. The better your credit score, the lower the deposit required will be. However, the opposite is true if you have a bad credit rating. If you have bad credit and are in a position to offer a higher deposit without affecting your finances, it could convince the lender you are able to afford the repayments without defaulting.

Alternatively, you could apply for car finance using a guarantor. This involves asking someone financially reliable to provide full economic support in the event that you are not able to keep up payments.

They will take over the full debt and will be required to meet the monthly instalments on your behalf. From a lender’s point of view, this lowers the risk as they have assurances that the money will be repaid in full. The guarantor needs to be financially secure and will also be required to undergo a credit and affordability check before they can be approved.

Will applying for bad credit car finance affect my credit rating?

Absolutely not. We perform soft searches rather than hard searches initially, which don’t affect your credit score or report in any way. Not all companies do soft searches initially, opting to perform hard searches instead, but we know that these searches can have an impact that can be avoided. Too many hard searches can reduce your ability to borrow credit in the future – which is especially bad when seeking car finance for people with bad credit already. Applying for a car loan online on Carplus won’t affect your credit rating unless we do a full credit search on your car finance application. We aim to provide a second chance for our customers, which allows them to build their credit score through monthly repayments.

Bad credit car finance FAQ

Do I need a deposit?

A deposit is not necessary, but placing one can reduce your monthly payments and increase the vehicle’s affordability.

Is it possible to get finance for bad credit with no guarantor?

Yes, this is possible. However, having a guarantor may allow for more favourable loan terms.

Who will finance a car with bad credit?

We work with a panel of over 20 UK car finance companies who offer loans to customers with poor or bad credit history.

How much money do you need to put down on a car with bad credit?

You won’t need a deposit in most cases. This means that lenders will finance the 100% value of the car. Simply get your quote today to see how much you can save on car finance with us.

Is bad credit car finance the same as guaranteed?

Bad credit car financing is not 100% guaranteed. However, we will do our best to meet your needs.

What credit score is too low for a car loan?

There is no specific minimum credit score required to obtain a car loan.

Bad credit options

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Comparing car finance and car warranties is what we do, so you will get through to someone who can help. Call us from Monday to Friday (8am - 8pm) and Saturday to Sunday (9am - 6pm).