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!
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.
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.
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:
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.
Compare and find the best car finance deals - quick and easy.
Getting a finance quote with Carplus won't affect your credit score, but a hard search will be completed before completion of the deal
No deposit options are available on all deals. Check if you are eligible today and get approved risk-free with soft search.
Get your UK car finance decision in minutes. Check your eligibility first. Apply in confidence with Carplus
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.
These estimates are subject to credit checks and may change when you apply for finance. this is for example purposes only
60 monthly payments of
60 monthly payments of
Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status. 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, the amount payable would be £185.33 per month, with a total cost of credit of£4,119.81 and a total amount payable of £11,119.81. We look to find the best rate from our panel of lenders and will offer you the best deal that you're eligible for. 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.
Experian |
---|
Equifax |
TransUnion |
Proof of ID |
Proof of address |
Proof of income |
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.
Experian | Equifax | TransUnion | |
---|---|---|---|
Bad | 0-560 | 0-438 | 0-550 |
Poor | 561-720 | 439-530 | 551-565 |
The following factors can cause you to have a bad credit rating:
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.
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:
Bad credit will make car loans more expensive. The representative example below shows a 19.9% APR over 4 years
Term | 48 months |
Credit profile | Bad credit |
Car price | £9,500 |
Deposit | £0 |
Representative APR | 19.9% |
Monthly cost | £280.49 |
Total cost of credit | £3,963.42 |
Total amount payable | £13,463.42 |
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.
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.
Applying with us does not impact 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.
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.
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.
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.
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.
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.
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.
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.
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.
We work with a panel of over 20 UK car finance companies who offer loans to customers with poor or bad credit history.
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.
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.
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.
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
The time of securing a car loan will vary by lender and personal circumstances. By working with us, you can minimise the paperwork your car loan requires and minimise 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.