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!

Car finance calculator for bad credit

Must be between £3,000 to £50,000
Your monthly payment
Total charge of credit£0
Total amount payable£0
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Rates from 9.9%: the exact rate you will be offered will be based on your circumstances, subject to status. Representative example: borrowing £10,000 over 60 months, £1,000 deposit, on HP, and a representative APR of 19.9%, the amount payable would be £229.95 per month, with a total cost of credit of £3,796.82 and a total amount payable of £13,796.82.

We look to find the best product from our panel of lenders and will offer you the best deal that you’re eligible for. We earn a commission for providing our services, but this does not influence the interest rate you’re offered.

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  • Rates From 19.9%

How does bad credit car finance work?

Bad credit car finance is designed for people with poor credit scores 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 with 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 circumstances. Additionally, we have a car finance calculator that will help you get a picture of how much time it’ll take you to pay out the loan.

Can I get car finance with bad credit?

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

Brokers need to make sure you are the right financial fit to get bad credit car finance; thus, they must carry out credit checks. However, if you have a bad credit score or no credit score at all, it may not be easy to find a lender who will approve your bad credit history for car finance.

Also, there is no minimum score required to get approved for a bad credit car loan. There are many lenders that will approve you for a car loan, even with a low credit score. However, the rates available for applications with poor credit may be higher.

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 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

Term48 months
Credit profileBad credit
Car price£9,500
Representative APR29.9%
Monthly cost£280.49
Total cost of credit£3,963.42
Total amount payable£13,463.42

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.

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.

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.
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Could my credit score be too low to get approved for car finance with a bad credit history?

Poor credit history can consequently lower the credit score. Your credit score is used for more than deciding whether or not to provide you with a loan. Conventional car finance lenders (such as banks) may immediately reject someone based on their credit score. Car finance lenders employ their criteria and procedures, which are generally considerably more liberal than traditional lenders (such as banks). 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.

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 car finance 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 finance deal for people with a bad credit score.
  • If provisionally accepted, we can discuss your finance options in more detail. Should you wish to proceed, we will tell you what you need to do next.

We'll take care of everything else and get you the money as soon as possible, no matter what your credit history is.

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:

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

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 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.

  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 car finance loans. This would not be necessary if you had a prior IVA that has already been settled.
  3. 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.
  4. 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.

How to get car finance if you have bad credit?

Getting poor credit car finance can be tricky, but these tips are great ways for people to improve their chances of getting car finance with bad credit history.

  1. Place a larger deposit. You'll be able to reduce your monthly payments plan by placing one when applying for car finance with a bad credit score.
  2. Follow responsible lending practices. You will only get car finance that you can safely repay each month throughout the general term. Our car finance calculator will calculate car finance by comparing your current monthly expenses to your monthly income. Before using it, make sure credit reference and credit profile are up-to-date.
  3. Set realistic expectations. Before applying with us, you can use our car finance calculator; enter your income and expenditures and get an idea of what you can afford to borrow based on your credit score.

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

Absolutely not. We perform a soft search rather than hard searches initially, which doesn’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 access credit in the future – which is especially bad when seeking a car loan for people with bad credit already. Applying with 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.

How can I improve my chances of securing car finance with a poor credit score?

Customers with low credit history have two common methods to improve their chances of securing a car loan. These involve either offering a higher deposit or using a guarantor.

When applying for a car loan, 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. Suppose you have bad credit and are in a position to offer a higher deposit without affecting your finances. In this case, you may convince the car finance lender you can afford the repayments without defaulting.

Alternatively, you could apply using a guarantor. This involves asking someone financially reliable to provide full economic support if you cannot keep up payments.

They will take over the full debt and will be required to meet the monthly payments on your behalf. From the 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 must also be required to undergo a credit and affordability check before being approved as your guarantor to help you get car finance with bad credit.

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

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 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 brokers 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.

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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.
You're proving that you're responsible with your money, which tells the lenders that you can afford to make a higher deposit. The cheaper qualifying amount means you'll pay less overall for the loan. With a lower interest rate, monthly payments can be lower. Lower monthly payments mean you'll save money over the long run.

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

It is possible to get car finance for bad credit with no guarantor but it might not be the best option. There are some risks involved in this type of financing, such as higher interest rates and higher monthly payments.
However, having a guarantor may allow for more favourable loan terms and high approval chances.

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?

The lender will finance the 100% value of your car which means that you won't need to pay a deposit in most cases. The amount you save can vary, but our website provides quotes to give you an idea of how much you could save when buying your next car.

Is bad credit car finance the same as guaranteed?

Bad credit car financing is not 100% guaranteed. The lender must make sure that the borrower has enough money to afford the repayments. 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, but a low credit score can mean you have to pay higher interest rates, add additional costs to the interest rate you are offered and pay more over the full term of your loan.

Can I finance a car with a 500 credit score?

The 500 credit score requirement for financing a car varies from one lender to the next. Many lenders will offer you the chance to finance your car with a low credit score. However, it is important to be aware of how much you will be charged for the loan.
As long as you can afford the car and have a credit score below 500, you should be able to finance it. Interest levels for loans like this may be somewhat higher than average

How long does it take to get a car with bad credit?

The time of securing a car loan will vary by lender and personal circumstances. By working with us, you can minimize the paperwork your car loan requires and minimize the time it takes to receive a loan. We don't control the timing of your purchase, but we're always happy to answer any questions you may have as you go through the process.