Assuming your credit profile is
|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.
Carplus will find the best car loan rate from our panel of lenders and will offer you the best possible deal. We don’t charge fees, but we earn a commission. This does not influence the APR you’re offered in any way.
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 a 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.
|Excellent||628 - 710||466 - 700||961 - 999|
|Good||604 - 627||420 - 465||881 - 960|
|Average||566 - 603||380 - 419||721 - 880|
|Poor||551 - 565||280 - 379||561 - 720|
|Bad||0 - 550||0 - 279||0 - 560|
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.
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 bad credit score or no history at all, it cannot be easy to find a lender who will approve your loan.
It is a well-known fact that lenders are hesitant to offer a loan if you have bad credit. However, you can finance a used car with a poor credit. Initially, the circumstances may seem challenging. However, there is a solution. At Carplus, we will help you secure financing for a used car with bad credit even if other lenders have turned you. It is advised not to make a financial decision until you've thoroughly investigated all of your possibilities.
The following factors can cause you to have a bad credit rating:
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 your car financed. One main reason being that 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 searching for a bad credit car loan. There's no way of knowing how likely lenders are to receive their money back.
Regardless of your situation, we think you should be able to get auto financing at a competitive rate. If you have a bad credit score, you can opt for the following types of car finances:
Poor credit history can consequently lower the credit score. Your credit score is used for more than deciding whether or not to accept a loan. Conventional lenders (such as banks) may immediately reject someone based on their credit score. 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 to improve your chances of getting approved for bad credit car finance.
Applying for bad credit car finance with our brokers couldn't be easier:
We'll take care of everything else and get the money to you as soon as possible.
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 car finance is right for you. Requirements will vary depending on the lender, but in general, they will usually ask for:
Depending on the lender you want to apply to, they will let you know the documents necessary and what format they need to be provided in.
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 bad credit car finance in the UK.
Bad credit car finance can be tricky to navigate, but these tips are great ways for people with low credit to improve their chances of getting car finance with bad credit history.
To apply for bad credit car finance, complete our brief application form. Then we'll work diligently on your behalf to find the best lender for you and negotiate the best terms for your credit situation.
Your financial management expert will be assigned to you and will call you to discuss the financial benefits. If you discover a good deal, we'll handle the paperwork so you can start looking for a new automobile.
Absolutely not. We perform a soft search 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.
Customers' two common methods to improve their chances of securing car finance are 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. Suppose you have bad credit and are in a position to offer a higher deposit without affecting your finances. In that case, it could convince the lender you can afford the repayments without defaulting.
Alternatively, you could apply for vehicle finance 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 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 must also be required to undergo a credit and affordability check before being approved.
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 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.
A deposit is not necessary, but placing one can reduce your monthly payments and increase the vehicle’s affordability.
Yes, this is possible. However, having a guarantor may allow for more favourable loan terms.
We work with a panel of over 20 UK car finance companies who offer loans to customers with poor or bad credit history.
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.
Bad credit car financing is not 100% guaranteed. However, we will do our best to meet your needs.
There is no specific minimum credit score required to obtain a car loan.