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.

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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.

What’s the next step?

We specialise in helping with car finance for people who have been refused previously, and we can offer you a range of car loan options.

Once you’ve filled in our online application form, we’ll perform a soft credit check. This allows us to assess your likelihood of being accepted before you are passed onto our panel of lenders. If it’s unlikely that you’ll be accepted, we won’t pass you on to receive a formal credit check. Failing a formal credit check will further hinder your credit score, as such we are careful only to pass on applications that we are confident will be approved.

Ways to help your application

While we pride ourselves on being able to help people who have been refused car finance in the past, we cannot guarantee that your application will be successful. As such, we recommend that you do the following in order to help your application.

  • Improve your credit score by ensuring you are on the electoral roll and the information held by credit reference agencies is correct and up-to-date;
  • Offer to pay a larger deposit, thus reducing the size of the loan you’ll need to borrow and increasing your trustworthiness in the eyes of lenders;

Will applying affect my credit rating?

Absolutely not. We perform soft searches rather than hard searches initially, which don’t affect your credit score 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. 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. Apply today for a same day decision vehicle 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).