Car finance calculator for bad credit

Amount to borrow

Must be between £3,000 to £50,000

Choose lenght of contract

24 months
36 months
48 months
60 months

Assuming your credit profile is

Estimated payments

These estimates are subject to credit checks and may change when you apply for finance.

Hire Purchase (HP)

APR 5.9%

48 monthly payments of


Total charge of credit
Total amount payable

Personal Contract Purchase (PCP)

APR 5.9%

48 monthly payments of


Optional final payment
Total charge of credit
Total amount payable

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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 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.

Credit Scores

Excellent628 - 710466 - 700961 - 999
Good604 - 627420 - 465881 - 960
Average566 - 603380 - 419721 - 880
Poor551 - 565280 - 379561 - 720
Bad0 - 5500 - 2790 - 560

Can you get car finance with bad credit?

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.

Can I finance a used car with bad credit?

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.

What causes you to have bad credit?

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

  1. Inability to follow the 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 history?

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.

Types of car finance for people with bad credit score

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:

  1. No credit car finance: This type of car finance is for individuals who have no credit history. Our specialist lenders will evaluate various criteria to establish your financial capacity and creditworthiness if you are under 18 or have never taken out a loan.
  2. No deposit car finance: A loan agreement without a down payment is not available from any auto finance provider. Our panel 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 loan 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 a loan. For poor credit applications, many lenders need guarantors, but our team specializes in identifying alternate alternatives.
  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 own 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 agreement, you have three options. You can return the car, keep it, or exchange it for another.

Could my credit score be too low to get approved for car finance with poor credit?

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.

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 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 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 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 loans. This would not be necessary if you had a prior IVA that has already been settled.
  3. If you are in bankruptcy, we will not help you obtain car financing. However, we would be happy to give you insight into managing your debt and improving your bad credit score. If your bankruptcy has been discharged, we will certainly help you with your 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.

How to get car finance if you have bad credit?

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.

  1. Place a larger deposit. Even though we offer financing with no deposit, you'll be able to reduce your monthly payment plan by placing one.
  2. Follow responsible lending practices. You will only receive car finance that you can safely repay each month throughout the general term. We'll calculate auto financing by comparing your current monthly expenses to your monthly income. Make sure credit reference and credit profile are up-to-date.
  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 to finance a used car with bad credit?

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.

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

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.

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

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.

Where can I get car finance with bad credit history? 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 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.

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