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.

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

Be aged 18-75 years old
Have been a UK resident for at least 12 months
Receive a monthly income of £1,000 or above
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.

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:

01

Complete and submit our online car finance application form.

02

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.

03

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.

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Getting a finance quote with Carplus will not affect your credit rating and you can do it for free

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No deposit options are available on all deals. Check if you are eligible today and get approved risk-free with soft search.

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We only work with trusted lenders

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Car finance calculator

Must be between £3,000 to £50,000
24month
36month
48month
60month
Your monthly payment
£0
Total charge of credit£0
Total amount payable£0
Apply now for your personalised, no-obligation quote

Rates from 9.9% APR. Representative APR of 21.9% APR Representative example: borrowing £7,000 over 5 years with a representative APR of 21.9%, the annual interest rate of 21.9% (Fixed) and a deposit of £0.00, the monthly would be £185.33, with a total cost of credit of £4,119.81 and a total amount payable of £11,119.81. Rates may differ as they are dependent on individual circumstances. The exact rate you will be offered will be based on your circumstances, subject to status.

We are a credit broker, not a lender. We compare multiple lenders to help you find the best rate available from our panel. We receive a fixed fee commission per finance agreement, or we receive a commission based on a percentage of the total amount of finance taken. This will not affect the interest rate offered or the total amount repayable. Our service is free.

How does bad credit car finance work and what it means?

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

The UK's three main credit agencies have different credit scoring methods. So there is no single score that defines "bad credit." But each agency categorizes scores as poor or bad credit.

Experian
Equifax
TransUnion
Proof of ID
Proof of address
Proof of income

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.

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.

ExperianEquifaxTransUnion
Bad0-5600-4380-550
Poor561-720439-530551-565

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.
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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
Deposit£0
Representative APR29.9%
Monthly cost£280.49
Total cost of credit£3,963.42
Total amount payable£13,463.42
SAF

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.

Pros and Cons of Bad Credit Car Finance

What can be covered

  • ✅Drive without paying the full amount upfront, offering flexibility for work, family, or holiday plans.
  • ✅Make regular car finance payments to improve your credit score and positively affect your overall financial situation.
  • ✅Our Bad Credit Car Finance Lenders specialize in unique circumstances, increasing the likelihood of securing the car you need, precisely when you need it.

Not generally covered

  • ❌Due to a lower credit score, expect elevated interest rates and fees. Lenders charge more to offset the increased risk, resulting in a higher overall cost for your finance.
  • ❌Failing to keep up with payments puts your car at risk of repossession, a standard risk with any car loan. Always ensure you can cover repayments to avoid financial loss and loss of your vehicle.
  • ❌If you face challenges repaying your finance, it can harm the credit score of any Joint Hirer or Guarantor helping you. It highlights the crucial need for you to manage payments responsibly.

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checkDeals from £99 a Month
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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 hurt 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.

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.

Higher Deposit

When applying for a car loan, most customers need to put down a deposit to purchase a car. The better your credit score, the lower the required deposit. With poor credit, you may need a higher deposit. This shows the lender you can handle the monthly payments.

Guarantor Option

You can also apply with a guarantor. This is someone financially reliable who will make payments if you cannot. They take on the full debt responsibility. This lowers risk for the lender since repayment is assured. To help get bad credit car financing, the guarantor must pass credit and affordability checks. They need good finances themselves.

Follow responsible lending practices.

You will only get loan amounts you can repay monthly. Our car finance calculator compares expenses to your income and shows what is affordable. Before using, update your credit profile.

Set realistic expectations.

Use our car finance calculator before applying. Enter your income and expenses. It will show what affordable loan amount you may qualify for based on your credit score.

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.

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.

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.