If you're facing the challenge of bad credit, securing car finance might seem like a daunting task. At CarFinance we specialize in offering bad credit car finance solutions to help you get behind the wheel of your dream car, regardless of your credit history.
How does bad credit car finance work?
Bad credit car finance is specifically designed for individuals with a poor credit history. It enables you to obtain the funds you need to purchase a car even when traditional lenders may turn you down. At CarFinance, we work with a network of specialist lenders who understand that a less-than-perfect credit score doesn't define your ability to make future repayments. We'll assess your individual circumstances and connect you with the lender that best suits your needs.
How do I understand I have a bad credit score?
A bad credit score is typically considered to be a credit score that falls below a certain threshold, which varies between different credit reference agencies and lenders.
| Experian | Equifax | TransUnion | |
| Bad | 0-560 | 0-438 | 0-550 |
| Poor | 561-720 | 439-530 | 551-565 |
Can I get car finance with bad credit?
Absolutely! At CarFinance, we're committed to making car finance accessible to everyone, including those with bad credit. We understand that life can throw unexpected financial challenges your way, which may negatively impact your credit score. That's why we offer bad credit car finance to help you overcome these hurdles and drive away in your ideal vehicle.
Can I get car finance with bad credit?
Yes, you can! Having no credit history can sometimes be as challenging as having bad credit. Traditional lenders may be hesitant to offer car finance to someone without a credit track record. However, CarFinance specializes in helping individuals with no credit history secure car finance. We understand that everyone starts somewhere, and we're here to support you on your journey to building a positive credit history.
Bad credit car finance calculator
- 36months
- 42months
- 48months
- 60months
This helps you get a more accurate finance estimate
These estimates are subject to credit checks, and may change if you do apply for finance.
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| Loan amount | £7,500 |
|---|---|
| Length of Loan | 60 months |
| Monthly payment | £0 |
| Interest rate | 9.9% APR |
| Optional final payment | £0 |
| Amount of interest | £0 |
| Total payment | £0 |
Why do I have a bad credit score?
A bad credit score can be caused by several reasons:
- Missed Payments: Failing to make payments on time for loans, credit cards, or bills can lower your credit score.
- High Credit Card Balances: Holding high balances on your credit cards, especially in relation to your credit limit, can negatively affect your credit score.
- Credit Applications: Applying for multiple loans or credit cards in a short period can harm your credit score as it may be seen as a sign of financial instability.
- Defaults: When you fail to repay a loan or credit agreement as agreed, it can lead to a bad credit score.
- County Court Judgments (CCJs): If you've had a CCJ issued against you for not repaying debts, it can have a significant impact on your credit rating.
- Bankruptcy: Going through bankruptcy has a severe negative effect on your credit history.
- Limited Credit History: Having a limited or no credit history can also result in a lower credit score.
- Rejections for Credit: When you've been rejected for credit, it can signal to other lenders that you're a higher risk, potentially further lowering your credit score.
How to get car finance with bad credit
Getting car finance with bad credit is a straightforward process when you choose CarFinance. Here are the steps to get you started:
Apply Online
Agree to Terms
Drive Your Car
At CarFinance, we believe in providing a hassle-free experience to our customers, ensuring that the process of securing car finance with bad credit is as smooth as possible.
Is it more difficult to get car finance because I have bad credit?
While it's true that having bad credit can pose some challenges, it doesn't mean that securing car finance is impossible. At CarFinance, we specialize in helping individuals with bad credit find suitable finance options. We work with a network of lenders who focus on your current financial situation rather than just your credit score. This approach increases your chances of approval, making it less difficult to secure car finance with bad credit through CarFinance.
Apply for pcp car finance
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Learn more & applyWhat documents do I need to apply for a bad credit car loan?
When applying for a bad credit car loan with CarFinance, you'll need to provide a few essential documents. These documents help us understand your financial situation better and assist us in finding the most suitable lender for you. Here's what you'll need:
- Proof of Identity: A valid photo ID, such as a passport or driving licence.
- Proof of Address: A recent utility bill or bank statement displaying your current address.
- Proof of Income: Bank statements, payslips, or any other documentation that verifies your income.
- Employment Details: Information about your current employment status and employer.
Providing these documents will expedite the application process and increase your chances of securing a bad credit car loan with CarFinance.
Why come to us to apply for car finance with a bad credit score?
When you choose CarFinance, you're not just getting car finance; you're getting a partner committed to helping you improve your financial situation. We offer competitive interest rates, flexible repayment options, and a variety of vehicles to suit your needs.
Car finance for unemployed and people on benefits
We believe that everyone should have the opportunity to own a car, regardless of their employment status or benefits. CarFinance offers options for individuals who are unemployed or receiving benefits.
Self-employed car finance
Self-employment can sometimes make it difficult to secure traditional car finance. At CarFinance, we understand the unique financial situation of self-employed individuals and provide solutions to meet your needs.
Bad credit finance with no guarantor
Not having a guarantor should not hinder your ability to secure car finance. CarFinance offers options for individuals who don't have a guarantor to support their application.
IVA car finance
If you've entered into an Individual Voluntary Arrangement (IVA), it may impact your credit score. CarFinance specializes in providing car finance solutions for individuals in this situation.
Car finance for bankruptcy
Even if you've been through bankruptcy, CarFinance can help you secure car finance. We understand that financial difficulties can happen to anyone, and we're here to support you.
Car finance with CCJ
Having a County Court Judgment (CCJ) on your credit file can make securing car finance challenging. However, CarFinance works with specialist lenders who consider applicants with a CCJ on their record.
Our bad credit car finance lenders
FAQ's
- Can you guarantee me a car loan?CarFinance cannot guarantee a car loan because approval depends on your credit history, credit score, and individual financial circumstances. However, we specialize in helping individuals with bad credit secure car finance by connecting them with specialist lenders who consider applicants with lower credit scores. While approval is not guaranteed, we work diligently to increase your chances of obtaining car finance.
- Why has my credit score gone down?Several factors can cause your credit score to decline, including missed payments, high credit card balances, and recent credit applications. Changes in your credit report can also impact your score. To pinpoint the exact cause, you should obtain your credit report from one of the main credit reference agencies. Understanding why your score has decreased is the first step in improving it.
- How to improve your credit score in the UK?
To boost your credit score in the UK, it's crucial to keep a steady income, which can help when applying for bad credit car finance. Paying your bills on time is a must; it shows you're responsible with your money, even if you've had a poor credit history.
Being on the electoral roll is a good idea; it proves where you live and helps credit reference agencies trust you more. Check your credit report often to fix any mistakes that might harm your credit rating.
While shopping with a store card can help build a better credit history, be careful not to spend too much and get into more debt.
- Can I finance a car with a 500 credit score?Yes, it's possible to finance a car with a 500 credit score, but approval may be more challenging with a lower credit score. CarFinance specializes in helping individuals with bad credit, and we work with lenders who consider applicants with scores as low as 500. Your options may include higher interest rates or a larger deposit to secure the car finance you need.
- Can I finance a car with a 200 credit score?A credit score of 200 is extremely low and may pose significant challenges when trying to secure car finance. While it's not impossible, you may face limited options and very high interest rates. At CarFinance, we'll do our best to find a solution for you, but a credit score of 200 is considered very poor.
- How long does it take to get a car with bad credit?The time it takes to secure a car with bad credit can vary. Typically, the application process with CarFinance is straightforward and can be completed in a matter of minutes. Once you're approved, you could be driving your chosen car within a few days, depending on the lender's processing time and the availability of the vehicle you desire.
- What make and model car can I get with poor credit car finance?The make and model of the car you can get with bad credit car finance depend on your approved budget and the specific lender's terms. CarFinance works with a variety of vehicles, so you have options. The available cars will depend on your budget, credit situation, and the lender's offerings.
- Do I need a deposit?In some cases, a deposit may be required when securing bad credit car finance. However, the deposit amount can vary depending on the lender and your credit situation. CarFinance can help you find suitable options, which may include both deposit and no-deposit solutions.
- Can a larger deposit improve my credit score?While a larger deposit won't directly improve your credit score, it can positively impact your car finance application. A substantial deposit may lower the amount you need to finance, which could lead to more favourable loan terms and a higher chance of approval. Responsible management of your car finance can help improve your credit score over time.
- Is it possible to get finance for bad credit with no guarantor?Yes, it's possible to secure bad credit car finance with no guarantor. CarFinance specializes in providing options for individuals who do not have a guarantor to support their application. We work with lenders who consider your individual financial circumstances and may not require a guarantor.
- Who will finance a car with bad credit?CarFinance collaborates with a network of specialist lenders who are willing to finance cars for individuals with bad credit. These lenders focus on your current financial situation and are more flexible when considering applications from those with poor credit histories.
- How much money do you need to put down on a car with bad credit?The amount you need to put down as a deposit on a car with bad credit varies depending on the lender and your individual circumstances. CarFinance will work with you to find a solution that aligns with your financial situation, which may include both deposit and no-deposit options.
- Is bad credit car finance the same as guaranteed?No, bad credit car finance is not the same as guaranteed car finance. While bad credit car finance provides options for individuals with less-than-perfect credit, it does not guarantee approval. Approval depends on your specific financial situation and the lender's assessment.
- What credit score is too low for a car loan?There is no specific credit score that is considered too low for a car loan, as it varies among lenders. However, extremely low credit scores, such as those below 300, may pose significant challenges in securing car finance. CarFinance specializes in helping individuals with bad credit and will do our best to find a solution for you.
- What can affect the final approval?The final approval of your car finance application can be affected by various factors, including your credit history, credit score, income, employment status, and the lender's specific criteria. It's essential to work with a specialist like CarFinance, who can help you navigate the process and increase your chances of approval.
- How can I improve my chances of securing car finance?
To improve your chances of securing car finance, you can:
- Choose a specialist like CarFinance.
- Apply for car finance within your budget.
- Provide the required documentation promptly.
- Be honest about your financial situation.
- Consider higher deposit options.
- Make regular and on-time payments.
- Will applying for bad credit car finance affect my credit rating?Applying for bad credit car finance with CarFinance won't impact your credit history. We start with soft searches, which don't affect your credit score. Unlike some companies that use hard searches, we understand these can harm your future credit access. Multiple hard searches are not ideal when you're already seeking a car loan with bad credit. With CarFinance, your credit rating remains unaffected unless a full credit search is necessary. We aim to offer a second chance, allowing you to improve your credit score through monthly repayments. Your journey to better credit begins with us.