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.

Compare car finance from 20+ trusted providers without affecting your credit score

Before you can be approved for car credit finance, the lender will conduct a credit check to ensure you are eligible for the loan. Having a bad credit history doesn’t always mean you won’t be approved, although it may not give you access to the best deals available.

If you have struggled to receive car finance from other lenders, or feel your current credit status could lower your chances, then Carplus may be able to help. Our bad credit finance deals could be the answer you are looking for, putting you back in the driving seat of your finances.

What is a credit score?

While most people have a credit score, not everyone is aware of what it means and how it can affect their credit applications.

You credit score relates to your credit report, which is a record of your financial history. In most cases this will include credit information collected over the past 7 years, after which negative information will disappear. Records of bankruptcy can remain on the file for up to 10 years.

The report allows lenders to assess if you are in a position to repay any loans or credits applied for. Any missed credit payments or defaults in the past could lower your score and can affect your chances of securing more in the future, even with a different company.

Everyone has the legal right to check their own credit score. Before applying for credit you should be aware of your current score, as a failed application for credit with any company will be recorded and can negatively impact your rating and lower your chances of securing future loans.

How does bad credit car finance work?

At Carplus we understand that everyone has a different credit history. That’s why we offer bad credit car finance – even if other lenders have refused you in the past.

That includes whether you have an Individual Voluntary Agreement (IVA), County Court Judgement (CCJ), have previously been declared bankrupt, or are self-employed.

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

Can I get a car loan without a credit history?

Credit checks are carried out by lenders to ensure you are the right financial fit to borrow the money needed for the car. If you have no credit history, it can prove difficult to check your suitability.

However, that doesn’t mean you can’t get a car loan without a credit history. We may be able to help you find the right deal to suit you – you can always rely on the Carplus team to do all it can to find a solution that works for you.

Do I need a deposit?

Not all of our lenders require a deposit to secure a deal. Simply let us know during the application process we’ll put you in contact with the most suitable lenders.

How do I apply for bad credit car finance?

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

  • Complete and submit our online application form.
  • We’ll perform a ‘soft credit check’ which will not affect your credit. This will determine if our panel of lenders can offer you a 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.

How can I improve my chances of securing car finance?

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

Most customers will be required to put down a deposit to hire a car. The better your credit score, the lower the deposit required. 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 a car loan 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.

Why use Carplus to apply for car finance?

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

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 them 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.

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

To ensure that taking out bad credit car finance is right for you, our panel of lenders require a few simple documents to get things started. 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 and format they need to be provided in.

Bad credit car finance

Find the best deals on bad credit car finance without affecting your credit score. Buy from any dealer.

CCJ car finance

If you have a CCJ, but we will work with you to find a monthly repayment plan that works for you.

No credit check

We compare car loan quotes from UK’s top lenders with no impact on your credit score.

Car finance on benefits

Compare car loan deals for customers on benefits and use our free car finance eligibility checker.

Refused car finance

You may be refused car finance if your credit score is in bad shape. Learn about how we can help you.

Debt management plan

Get approved for car finance while being on a debt management plan. No impact to your credit.

Questions? Speak to a real person

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).