At our core, we specialize in bad credit car finance. Whether you have a thin credit file or a less-than-perfect credit history, we've got you covered. We understand that getting declined by other lenders can be frustrating, but don't worry—we're here to make things easy. Our team of dedicated car buying experts has partnered with trusted bad credit lenders throughout the UK to provide you with excellent financing options. Don't let bad credit hold you back from getting the car you want – we're here to help!

Can I get car finance with bad credit?

Yes, it is entirely possible to get car finance with a bad credit score, but it's important to be smart about it. If you're applying for finance on a car that's too expensive or unusual, like rare imported cars, it might be harder to get approval.

Take a good look at your budget and choose a car that makes sense for your financial situation. Make sure you can handle the monthly payments without any problems. As a car finance provider, Carplus looks at situations on a case-by-case basis to find the perfect car finance deal.

As a broker, we check credit to ensure you qualify financially for bad credit car finance. Bad credit or no history can make approval harder.

While there is no minimum score needed for a bad credit car loan. Many lenders are willing to approve loans for individuals with low credit scores, but interest rates can be higher with poor credit.

Before forwarding your loan application to our lenders, we conduct a 'soft search' or 'quotation search.' This is a basic credit check that doesn't impact your credit score. We evaluate your income and the likelihood of making monthly repayments. Once the soft search is done, we forward your application to our lenders, who typically respond within 24 hours.

Can I get car finance with no credit score?

At Carplus, it is possible to get car finance with no credit history. Having zero credit history can prove to be an obstacle to getting cars financed. One main reason is that car finance lenders are unsure if they can trust the borrower or not.

Since they have no insight about how effectively they manage their finances, lenders consider persons with no credit history to have bad credit. If that's the case, your car loan offer may be the same as someone looking to get bad credit car finance. There's no way of knowing how likely car finance lenders are to get their money back.

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

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

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

What is considered a bad credit score?

It is common to have a bad credit score due to past financial problems.

Credit scoring methods differ among the UK's top three main credit reference agencies, so there is no single credit score that defines “bad credit” or “poor credit”. However, each credit reference agency has its own categorization for poor and bad credit scores.

What causes you to have bad credit?

The following factors can cause you to have a bad credit rating:

1. Inability to follow a credit agreement.
2. Bankruptcy.
3. Opting for a credit card that does not match your lifestyle and expenses.
4. County Court Judgements (CCJ).
5. Identification duplication or theft.
6. Minimum monthly payments on the credit card.
7. Having zero credit history.

Could my credit score impact car finance approval with a poor credit history?

A poor credit history can lower your credit score. Your credit score is used for more than deciding whether or not to provide you with a loan. Traditional car finance lenders may reject applicants based on their credit score. Car finance lenders usually have more lenient criteria and procedures than bank. Suppose you are currently behind on existing credit agreements. In that case, it is in your best interest to update repayment as soon as possible so that you can get approved for a deal.

Types of car finance for people with bad credit score

Regardless of your situation, we think you should be able to get car finance at a competitive rate. If you have a bad credit score, you can opt for the following types of car finance:

1. No credit car finance: This type of car finance is for people who have no credit history. Our lenders who specialize in dealing with bad credit scores will evaluate various criteria to establish your financial capacity and creditworthiness if you are under 18 or have no credit history whatsoever.
2. No deposit car finance: A car finance agreement without a down payment is not available from any provider. Our panel of lenders can provide you with the best interest rates if you have no savings. You will be at a disadvantage if you do not have a deposit. It's usually a good idea to retain your car finance application and put down a deposit first.
3. No guarantor car finance: This type of car finance is intended for those who do not have dependable friends or family to help them get car finance. For poor credit applications, many lenders need guarantors, but our team specialises in identifying finance alternatives for people with such credit history.
4. County Court Judgment (CCJ) car finance: CCJ car finance is obtainable. However, it is tough to come by. If you were issued a CCJ last year, we recommend waiting until the 12-month term has passed before applying. There are still choices if you can't wait, but expect longer terms and higher interest rates.
5. Hire purchase (HP) – regular monthly payments. You will get the car at the end of the contract.
6. Personal contract purchase (PCP) – regular monthly payments. Secured against the vehicle. At the end of the car finance agreement, you have three options. You can return the car, keep it, or exchange it for another.
7. Car finance if you are unemployed but have the budget or have been refused previously, can be challenging because car finance lenders require trust and a guarantee that their money will be paid back. At Carplus, we can also help people secure financing for cars in these situations.

What is the cost of a bad credit car loan? Let’s see

Bad credit will make car loans more expensive. The representative example below shows a 19.9% APR over 4 years

SAF approved car finance specialists

Welcome to Carplus, your friendly car finance broker in the UK! We're here to help you secure car finance with ease. As fully authorized by the Financial Conduct Authority and SAF approved, our dedicated team is committed to empowering individuals with tailored financial solutions.

What can affect the final approval of car finance for people with a poor credit score?

At Carplus, we understand that various circumstances could cause bad 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 bad credit car finance in the UK.

• If you have fallen behind on your credit monthly repayments, do your best to catch up.
• If you have an active IVA, get written approval from the insolvency practitioner to get a car loan. This isn't needed if your previous IVA was settled.
• If you are in bankruptcy, we cannot help you. However, we would be happy to give you insight into managing your debt and improving your bad credit score. If a bankruptcy has been discharged, we can certainly help with an application for financing for cars.
• Lastly, even if you have an outstanding CCJ in the UK with bad credit, we will still review your applications and help however we can with your car loan.

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

Applying with us does not impact your credit score. We first do a soft search that is not visible to others. Some companies do hard searches right away instead. But too many hard searches makes future credit harder to get. We avoid this so bad credit does not get worse.

Our full application search affects credit only if approved. We provide a second chance to build credit through on-time monthly payments.

Where can I get car finance with a bad credit score? Carplus!

At Carplus, it is possible to get car finance with no credit history. Having zero credit history can prove to be an obstacle to getting cars financed. One main reason is that car finance lenders are unsure if they can trust the borrower or not.

Lenders see no credit history as bad credit. With no financial track record, they don't know if you will repay a loan. So your terms may equal someone with bad credit. If that's the case, your car loan offer may be the same as someone looking to get bad credit car finance. There's no way of knowing how likely car finance lenders are to get their money back.