Your Credit Profile Archives

What Credit Score is Needed for UK Car Finance?

Your credit score is one of the most important tools used by lenders to assess car loan applications. So, what credit score is needed for UK car finance? There’s no black-and-white answer, however, there is a lot to learn when it comes to credit scores.

Your credit score is one of the most important tools used by lenders to assess car finance applications.

As to the question of what credit score is needed for UK car finance, there’s no hard and fast answer because different car finance lenders have their own requirements.

While there’s generally no universal minimum score you need to secure car finance, your credit report will nonetheless impact your eligibility and the kinds of rates you’ll be offered. The higher your credit score, the better terms and rates you’ll benefit from.

As such, it’s sensible to compare your options with different lenders and improve your credit before applying – read on to find out more.

Understanding credit scores and their impact on car finance

A credit score is a three-digit number that reflects your reliability and trustworthiness as a borrower based on your history of credit management and use. The range of credit scores varies from ‘excellent’ to ‘very poor’.

Lenders will use your credit score to evaluate your risk as a lender. The higher your score, the better the terms and rates you’ll benefit from, and you’ll likely be eligible with a wider panel of lenders.

Your credit score is calculated based on several factors. These include payment history, the percentage of your credit you’re using, the length of your credit history, and the number of ‘hard’ credit checks on your account.

The ‘big three’ UK credit reference agencies

In the UK, most lenders use three main CRAs (credit reference agencies) to vet applicants. Each agency has its own scale that it uses to assess individuals and assign them a credit score. They also have their own custom eligibility criteria which will factor into your car finance eligibility.

Credit scoring ranges from ‘very poor’ to ‘excellent’. Most people will fall in the ‘fair’, ‘good’, or ‘excellent’ range. Anything below ‘fair’ is considered ‘poor’ and will impact the car finance rates and terms you’ll be offered.

The three main CRAs in the UK use the following credit score ratings:

	Equifax	TransUnion	Experian
Excellent	811+	628-710	961-999
Very Good	740-799	NA	NA
Good	531-670	604-627	881-960
Poor	0-438	551-565	561-720

What credit score is needed for car finance in the UK?

You can assume that your credit score rating means the following:

Excellent: You’re considered a low-risk borrower and will access the best rates and deals

Good/fair: You’ll be considered less risky than those with poor credit and will benefit from competitive rates

Poor: Your options will be more limited, but it’s still possible to secure poor credit car finance

Remember that each lender will have their own eligibility criteria beyond your credit score. For example, some lenders may prioritise proof of income, whereas others place more weight on your debt-to-income ratio.

Other factors that influence car finance approval

Your credit score is critical to determining your car finance eligibility.

That said, there are other factors that will also influence your likelihood of approval, including:

Deposit size: A larger deposit (also known as a down payment) reduces the overall loan amount, which can lower your interest rate and make you a more attractive loan candidate.

Loan term: The longer the loan term, the higher the interest rate you can face because longer loans are riskier to lenders.

Debt-to-income ratio: This measures how much debt you owe compared to your income. The higher the ratio, the riskier you are to a lender.

Stability of income and employment status: Younger applicants are riskier than those with established, stable incomes. Equally, lenders will want to check that your income matches the payments going into your account.

Can you get car finance with a low credit score?

If your credit report is less than perfect, don’t panic. It’s more than possible to secure car finance with poor credit.

Brokers like My Car Credit can help you secure favourable deals even if your credit report isn’t at its best.

We combine a wide panel of trusted lenders with a sensible approach to help you find the right agreement for your circumstances. Our tailored approach means that we may even be able to approve you for car finance where others haven’t.

That said, there are easy ways to check and improve your credit score.

How to check and improve your credit score

You can ask any of the CRAs we mentioned above for a copy of your credit report. This allows you to check your score via a soft credit check.

A soft credit check doesn’t leave a mark on your credit report. They’re only visible to you (the applicant), remaining invisible to lenders and third parties. Remember that if you choose to advance your finance application, your credit report will typically be subject to a hard search, which will leave a mark.

There are plenty of ways to improve your credit score. Some of the best strategies for improving your credit score include:

Registering on the electoral roll: Lenders will check this to check that you are who you say you are, protecting themselves against fraud.
Making timely payments: Lenders want to know you’re capable of responsibly managing your credit, and making timely payments helps to prove this.
Reducing your credit utilisation: Spread your payments across your accounts, as this process shows you know how to manage your money.
Avoiding multiple hard credit checks: Hard credit checks leave a mark on your report, and too many of them won’t be looked on favourably by lenders.

How does my credit score affect my car finance application?

Your credit score will impact your car finance application in several ways. For one, the higher your credit score, the better your eligibility for more favourable rates and terms. In other words, you can expect lower interest rates with higher credit scores.

Applicants with higher credit scores may also benefit from better loan amounts and terms, and may be able to access a broader panel of lenders. This affords more options when shopping around for a favourable, tailored car finance loan.

The role of My Car Credit in securing car finance

As part of Evolution Funding, the UK’s largest motor finance and technology provider, My Car Credit has access to the largest panel of car finance lenders nationwide.

This means we can offer personalised support to borrowers, leveraging our expertise, lender network and award-winning technology to find the right car finance for your needs and circumstances. Our goal is to help you buy the car you want at the budget you can afford.

Use our car finance calculator to assess your car finance eligibility. You’ll receive a no-obligation quote in minutes, giving you a breakdown of your expected monthly payments, typical interest rates, and total payable.

If you’re unsure about the kind of car finance that might work best for you, contact our friendly team of Car Credit Specialists today.

Frequently asked questions

Can I get car finance with no credit history?

At My Car Credit, we consider applications from drivers of all circumstances. Whether you’re a first-time motorist, self-employed, or have a poor credit rating for different reasons, we can work with you to secure car finance that accommodates your circumstances.

Will checking my credit score lower it?

Checking your credit score won’t lower it. In fact, it’s sensible to regularly check your report for free so that you can establish whether there are any potentially harmful errors that need rectifying. Plus, regularly checking your score means you’re more likely to be upfront with lenders from the get-go, reducing the risk of rejection further down the line.

Does car finance improve credit score?

Repaying your car finance in full and on time can help to improve your credit score in the long run. This can improve your eligibility for future loans, as you’ll be seen as a more reliable, less risky borrower.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

Does Car Finance Affect Mortgage Applications?

If you have a car finance agreement in place and have also begun a mortgage application, your car finance may affect whether or not that application is approved, and what rates you may be offered.

This is particularly the case if you have missed any of your repayments for your car finance, as this will negatively impact your credit score, and will therefore impact your mortgage application. On the other hand, making all of your repayments can actually improve your chances of mortgage approval. Read on as we take a closer look.

Will car finance affect your mortgage?

When you apply for a mortgage, the lender will scrutinise your finances. Whether you have an active car finance deal, or a previous one that has been fully repaid, will impact their decision for your mortgage application. This is because car finance is a form of debt. As such, your mortgage providers will look to see how conscientious you’ve been in repaying your car finance.

Remember, if you have defaulted on your car finance, or missed any payments, then this will impact your credit history. This will in turn affect your mortgage application, as you will appear less financially responsible and therefore of higher risk to your speculative provider. Thankfully, there are still ways of securing car finance even with poor credit.

On the other hand, a history of timely repayments and problem-free car finance can actually improve your credit score. Put simply, it shows that you are capable of making regular repayments as agreed and staying within your budget – as is required with a mortgage.

The importance of credit history and scores

Your credit history is the common link between car finance and your mortgage. Understanding it is key to how car finance affects your mortgage.

Every adult in the UK has a credit file. This is used to make credit checks whenever you apply for financial products. That could be a mortgage, car finance or just a personal loan. Lenders can perform a soft credit check, which doesn’t stay on your credit file. Or credit checks can be ‘hard’, which leaves a mark and can affect your credit score over time.

Checks on your file can include an in-depth credit report, which looks at several different aspects of your credit file. Or it could just be a credit score or credit rating. Credit scores are a rough indication of your standing as a borrower. A poor credit score indicates some issues on your credit report. On the other hand, a good credit rating shows that you’re relatively low-risk to lenders.

Does car finance affect your credit score?

Here’s how credit history links to a car finance agreement or mortgage application:

Both car finance and mortgage lenders will want to check your credit score (and history) before approving your application.
Car finance payments and mortgage payments both impact your credit score over time.

How car finance affects affordability assessments

It’s not just your credit score that impacts your mortgage and car finance. Affordability checks are another key area for mortgage lenders and other finance companies.

What is affordability?

While your credit history indicates your track record of debt repayments in the past, affordability looks at the present and future. In other words, can you afford to make certain mortgage payments or car finance repayments now and over the course of your repayment term?

One aspect of this is your debt-to-income ratio. This assesses how much of your income goes towards debt. In other words, it shows how much disposable income you have left to spend on the likes of mortgage repayments and car finance repayments.

Above all else, affordability checks look at your financial circumstances. Are you a responsible borrower who can comfortably afford the loan repayments you’re agreeing to? This is a key part of the mortgage approval process for a mortgage broker or mortgage lender.

Does car finance affect affordability?

The short answer is yes, if you have an active car finance deal in place, this will affect mortgage applications because of the affordability assessments that your prospective provider will perform.

Any mortgage provider will scrutinise your finances before offering a mortgage – this is actually a legal requirement, and involves looking at your credit score, employment status, debt, and history of loan repayment. If you’re currently repaying any loan such as car finance, this will be factored into your mortgage affordability assessment.

As a general rule, the higher the debt remaining for you to pay back on your car, the lower you’ll be lent for a mortgage – though this may vary depending on the provider. The theory is that the more you have to repay on other loans or assets, like your car, the less you’ll have to put towards your mortgage.

As such, if you do have a way of clearing the balance on your car finance before applying for your mortgage, this would be a sensible course of action, as your car finance won’t impact the application to such a degree.

Minimising how much car finance affects your mortgage

To summarise, here’s a short list of ways you can ensure that car finance doesn’t negatively affect your mortgage:

Keep up with car finance payments to avoid late or missed payments that damage your credit rating. This will prevent you becoming a higher-risk borrower for mortgage lenders.
Make sure you can comfortably afford monthly repayments before committing to a car finance agreement. In doing so, you’ll keep a bit of wiggle room when it comes to mortgage affordability, rather than reaching your financial limits.
Pay off your car finance early if you need to improve your affordability to meet monthly mortgage payments. Getting rid of outstanding finance and existing debts means you have more disposable income going forward.

Car finance made easy

At My Car Credit, we pride ourselves on our customer service, and will work hard to find you a car finance deal that suits your needs and circumstances – so you can help rather than harm your credit score and any future mortgage applications. If you’re wondering how to make a car finance application work alongside a mortgage application, start by checking out our free Car Finance Calculator.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

What Checks Are Done for Car Finance?

Try Our Classic Car Financing Calculator

What is the Average Car Loan Interest Rate?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

affordability credit profile credit score debt Mortgage

How to Finance a Car with Poor Credit

You don’t need an ‘excellent’ credit rating to take advantage of car finance payment plans. If you have a lacklustre score and want to know more about how to finance a car with poor credit, we have answers.

Read on to find out how to get car finance with poor credit rating in three easy steps:

Step 1: Find your credit score

Your credit score plays an important role in determining how much you can borrow, as well as the terms and conditions of your loan. It offers lenders an overview of your borrowing habits and helps establish the level of risk associated with your loan. Credit scores are calculated using a range of factors, including credit card payments, outstanding loans, previous finance applications and direct debits currently in your name. We recommend Experian to find your credit score.

The latest data from Money Supermarket is a good place to start when looking for a benchmark. The platform uses TransUnion as a credit reference agency, with scores ranging between 0 to 710. Scores of between 566 and 627 are considered ‘good’ while scores of 628 or more get you into the ‘excellent’ category. The average Brit has a credit score of 573, according to a survey conducted in December 2021. This is slightly higher than the 569 average recorded in December 2020, which suggests credit scores are on the rise.

Of course, not all Brits enjoy an ‘excellent’ or even ‘good’ credit rating. If you’re hovering around the 550 or lower range, you could fall into the ‘poor’ category. Don’t worry, this isn’t game over and you’re definitely not alone. Thousands of Brits have poor credit ratings, with the North West and North East of England recording some of the lowest averages.

While poor credit history is often considered taboo, there are all kinds of reasons why you may have a less-than-perfect score. Things like minor mortgage defaults and outstanding bills can bring down your credit rating. You might also be given a flat score if you haven’t built up a credit history yet or you’re self-employed and have difficulty proving your income. Whatever your unique situation, don’t let your ‘poor’ rating drag you down just yet.

Step 2: Crunch your numbers

After establishing your credit score, it’s time to crunch your numbers. Our car finance poor credit rating calculator is a quick and easy way to do the maths and get an idea of what types of numbers you’re looking at. It’s quick, easy, and most importantly, stress-free. The last thing you want when you’re researching how to get car finance with poor credit rating is a headache. That’s why we’ve created this calculator to streamline the process and give you results in a matter of clicks.

All you need to do is enter your preferred loan amount, repayment terms and finally, your credit rating. There’s no impact on your credit score, so don’t worry about pushing your rating even lower. After you’ve punched in the numbers we’ll generate your expected monthly payments, as well as what typical APR rate to expect.

Our goal is to make your experience as easy and transparent as possible, which is why we also include the loan amount and total payable figure. No blurred lines here. Just simple, easy to interpret numbers. If you want to know more about how to finance a car with poor credit, simply hit the ‘apply now’ button and follow the next steps.

Step 3: Secure a lender

You’ve established your credit score and crunched the numbers. Now it’s time to secure a lender. There are loads of options out there and it pays to shop around and find a lender that suits your unique needs.

Here’s some tips on how to secure the best car loans from top lenders in the UK:

Look for brokers with good connections

One of the best ways to improve your chances of securing car finance with poor credit is to enlist the help of a broker. Working with an established financial services platform is an easy way to browse the market and track down the best deals, without having to do a huge amount of groundwork.

Brokers can be a godsend but it’s worth noting that not all offer the same customer-focused, results-driven services. When you choose My Car Credit, you’re unlocking access to one of the largest panels of lenders in the UK. We’re part of Evolution Funding, the UK’s biggest and most trusted motor finance broker.

In addition to a wide panel of trusted lenders, we use purpose-built technology to track down the best deals. This means we’re often able to secure approval for car finance where other brokers have failed. If you’re researching how to finance a car with poor credit, it’s hard to find a better solution.

Remember, all circumstances are considered

Ruling yourself out too early is one of the biggest mistakes you can make when researching how to finance a car with poor credit. A good car finance platform should consider all circumstances, regardless of how low your credit score is. Often, there’s more to the story than meets the eye.

At My Car Credit, our passionate team of auto finance advisors are here to dig deep into your finances and secure you the best possible loans and interest rates from our panel of lenders, no matter what your credit score. Every case is assessed individually, with zero judgement. Our goal is always to find the best car loan for your unique circumstances. With access to a large panel of trusted lenders with options for all kinds of applicants, we’re well-equipped to do just this.

Want to know more about how to finance a car with poor credit? Get in touch via email or give us a call on 01246 458 810 to discuss your car finance options and learn more about how to get car finance with poor credit rating.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

What Checks Are Done for Car Finance?

Try Our Classic Car Financing Calculator

What is the Average Car Loan Interest Rate?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

bad credit Jan24 poor credit

Can You Lease a Car with Poor Credit?

The need for a gold-standard credit rating to lease a car is one of the biggest misconceptions in the auto industry. If you’re wondering “can you lease a car with poor credit” this article is for you.

Yes, leasing a car is a significant financial responsibility and creditors will do their due diligence to ensure the risk isn’t too big. But that doesn’t mean car loans are reserved exclusively for Brits with good credit. So, can you lease a car with poor credit? Absolutely.

It’s not always as straightforward as leasing a car with good credit and you may end up paying a little more when it comes to interest. But with the right support and a good strategy, it’s definitely possible.

Read on to find out more about how to lease a car with poor credit and stop feeling dragged down by a less-than-perfect score.

Understanding car leases

With the average cost of a new car now sitting at around £20,000, paying cash for a new set of wheels isn’t a reality for most Brits. Even used cars can be pricey, especially in the face of soaring demand and the current semiconductor shortage. This is where car leases step up.

Funded by trusted lenders, these long-term rental agreements boost your spending power and get you behind the wheel of your dream car ASAP. Like other financial loans, such as mortgage and credit card applications, your credit rating can have an impact on how much you can borrow and the terms and conditions of your loan.

The nationwide car finance trend

The latest stats from the Finance & Leasing Association (FLA) reveal more than 93% of all private new car registrations in the UK are purchased using finance from FLA members. No doubt about it, the UK is a nation that’s well and truly embraced the benefits of automotive leases. The good news is, even if you have a poor credit the chances of securing a loan and taking advantage of long-term rental options is still possible.

Why your credit score matters

Your credit score offers potential financers an idea of what to expect when lending you money. For example, missed payments on a credit card or a previous bankruptcy declaration will bring your credit rating down. This suggests you may not be the most reliable borrower. On the flip side, a flawless track record boosts your credit score and implies you’re a reliable borrower.

When you apply for car finance, lenders will check your score using a UK credit reference agency. Results are used to assess your loan and decide if it should be approved or denied. ‘Good’ or ‘excellent’ scores are preferable but not essential.

Why is my credit score poor?

There are all kinds of reasons why your credit score might not be up to scratch. Of course, missed payments on a credit card or outstanding debts can drag down your rating. But factors such as no previous long-term loans can also keep your score in the below-average range. Yes, sometimes being too responsible with money and avoiding debt can hinder your credit score! Your score might also be flawed due to association with a partner with a poor credit rating.

Can you lease a car with poor credit? Here’s a closer look at why your credit score matters:

The amount you can borrow

One of the biggest factors your credit score affects is the amount you can borrow. Your credit rating is used to establish your financial history and determine your risk factor. Results help lenders decide how much they’re willing to lend you.

That said, your credit score isn’t the only thing lenders will consider when viewing your loan. Your initial deposit can sway the decision and play a role in determining how much you can borrow to fund your new car purchase.

Your interest rate

As well as influencing the amount you can borrow, your credit score may be used to determine your interest rate. Generally, higher credit ratings correlate with lower interest rates. This is good news for applicants with low credit scores who are hoping to secure a car loan. While you may not be able to unlock the best interest rates, poor credit doesn’t rule you out completely. Instead, you may be offered a higher rate than an applicant with excellent credit.

When shopping around for car loans, look for platforms that offer rates starting from 6.9% APR and take note of the representative APR that they advertise. This gives you an indication of the rate that the majority of their customers (at least 51%) will get.

The representative APR is important because it means that nearly half of customers will be given a rate more than the representative APR. This is especially true where you have poor or bad credit.

The length of your loan term

Your credit score may also affect the length of your loan term. This can have a big impact on the size of your monthly payments.

Can you lease a car with poor credit?

You may not be able to secure the same rock-bottom interest rates as applicants with ‘excellent’ credit but with the help of our in-house advisors, the chances of leasing a car with poor credit are improved. Whether you’re in the market for a nearly-new hatchback or a second-hand SUV, we’re here to help.

Ready to jumpstart your car lease application? Use our car finance poor credit calculator to generate a quick online quote, with zero impact on your credit score. Forget the hard sell. We’re all about offering our customers an easy, stress-free experience.

SendSend us an email or give us a call on 01246 458 810 to find out more. We’re always available to answer all your “can you lease a car with poor credit” questions and discuss your car finance options.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

What Checks Are Done for Car Finance?

Try Our Classic Car Financing Calculator

What is the Average Car Loan Interest Rate?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

bad credit poor credit

What Credit Score is Needed to Buy a Car?

An average credit score is generally considered to be 569 or above in the UK. Your credit score is critical to your financial health, and will determine what kind of loans and other services that you’re viable for. But what credit score is needed to buy a car?

We answer this question and detail how My Car Credit can help find the best car finance for you – whatever your score.

How do credit scores work?

Your credit score will fall along a score range, which is generated by a computerised scoring model. The scoring model uses statistical analysis to establish patterns in your credit report data, assigning a three-digit number score. This will in turn reflect on your ‘riskiness’ as a consumer.

Lower scores indicate that you’re more of a risk for lenders. As a result, you may end up paying higher interest rates, fees, and deposits.

The different credit models used by national credit bureaus will calculate and report different credit scores. Below, we list the different categories of credit score based on the Experian average credit score range.

Excellent: Typically, your score would be from 961 to 999 if you sit within this bracket. Having a score this high will streamline your approval process, and you’ll receive the best available terms.

Good: You’ll have a score of 881 – 960 in this bracket, and will likely have better rates offered.

Fair: If your score is in the bracket 721 – 880, you may be considered a subprime borrower, and your interest rates may therefore be slightly higher.

Poor: Between 561 – 720 is a poor score, so you might have loans declined if you sit within this range. Anything lower than this is considered very poor.

Thankfully, there are ways to improve your credit score, so be sure to check these out.

Can I get car finance with poor credit history?

You’ll be pleased to hear that the answer to this question is – yes. There is no specific score required to buy a car. However, as outlined above, the higher your score, the more likely you are to receive a better deal and rates.

That said, we understand that everyone’s case is different, and we treat them as such. We combine a wide panel of over 30 lenders to help you find the right car finance for you.

You can also check your eligibility for credit before you formally apply for car finance. To do so, we’ll carry out what’s called a ‘soft search’ credit check. This involves checking your financial history without exposing the information to lenders. It therefore won’t have any impact on your current credit score.

Contact My Car Credit today

Now you know what credit score is needed to buy a car, you should be feeling much more confident about taking the next steps. However, if you’re looking for car finance but worried about your poor credit, contact our friendly team today to discuss. We aim to address any concerns or queries that you may have about the process – call 01246 458 810 today.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

What Checks Are Done for Car Finance?

Try Our Classic Car Financing Calculator

What is the Average Car Loan Interest Rate?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car buying credit score Jan24

Does Getting a Car Loan Hurt Your Credit?

Buying a car is likely one of the largest purchases you’ll ever have to make. This is why so many people are turning to car finance in order to make the process more manageable and affordable. However, occasionally we come across doubts about whether getting a car loan might hurt your credit.

This article will detail the different ways that getting car finance on your new vehicle might impact your credit – both positively and negatively.

What is a credit score?

Whether you know it or not, you will have a credit score. A credit score is used by lenders to understand your financial history. Furthermore, it allows them to make a judgement on whether you’re a good candidate for future loans. As such, lenders will perform credit checks on you to gauge this. These are known as either hard or soft, depending on whether they impact your score.

Credit reference agencies

Almost all forms of personal finance will impact your credit score. This is typically provided by different companies known as credit referencing agencies. Your number will usually be between 300 and 850. Generally, the higher it is, the better your credit rating – but there are variations between the companies who provide your score rating. In turn, this will impact where you sit on the spectrum of credit. A score of 500 with TransUnion would be below average for them, for example, but good for the provider Equifax.

Payment history and your credit score

Your payment history has a huge impact on your credit score, as does your history of applications. This is why if you make payments on time, this will positively affect your score. Conversely, there are things that might indicate to lenders that you’re a riskier candidate for a loan. For example, if your credit report shows missed payments or defaults, if you’re paying off multiple loans, or if you are near your credit limit. Your credit score might not be the singular factor in whether you’re approved for a loan. However, it will have an impact on your chances.

How does a car loan impact your credit score?

As with most things, getting car finance has advantages and disadvantages for your credit score. It will entirely depend on how you manage your repayments. It’s important to realise that when you first get your car finance loan, it will likely make a slight dent in your credit score. This is because it’s a hard enquiry into your credit history. However, if you are regular and on time with your repayments, this will soon bounce back.

Advantages of car finance on your credit score:

If you make your repayments on time every time, this might have a positive impact on your overall credit score. In essence, it shows lenders that you’re a safe bet for future loans. Be aware, however, that this can take time to show up on your credit score.
It diversifies your credit mix. Your credit mix refers to the types of credit that you have on your roster, which is usually divided between revolving credit (like credit cards) or instalment credit (like car loans). Lenders like a mix of both, so adding car finance onto your profile can make you more appealing for future loan applications. This in turn boosts your credit score.

Disadvantages of car finance on your credit score:

If you are late on your repayments or miss one or more payments, your car loan is considered delinquent. You’ll typically be given a grace period to make the payment back. However, if your lender is required to take further action against you then your credit score will be negatively impacted. For example, if a full billing cycle goes by without you making payment. Consequentially, you might find it harder in the future to find good interest rates or a loan.
If you default on the loan, your credit score will also be impacted. Should you continue to not make payments, the car finance lender may involve debt collectors, who could repossess your vehicle. Each of these elements – late payments, default, transference of the account to debt collectors, or repossession – leave a separate mark on your credit report. Furthermore, they’ll stay there for up to seven years, and they have a significant negative effect on your credit score.

Car finance and credit scores: what to know

Before you begin your hunt for car finance, it’s also important to understand the difference between different kinds of credit checks. This is because finance companies may conduct either a hard search or a soft search on your credit score.

Hard searches:

Some finance companies will conduct a hard search or enquiry on your credit report. This is a process that begins when you first apply for credit, and it requires your consent. However, it won’t happen if you’re only looking for pre-qualification to decide whether to apply.

A hard enquiry will take points off your credit score. This is temporary – usually staying on your report for two years – but will be visible on your credit report. It’s therefore best to limit the number of hard searches taking place on your score. You can do this by checking in advance of application whether you’re likely to be approved.

Soft searches:

Soft searches, by contrast, won’t impact your credit score. As such, they can take place without your knowledge. This kind of check is designed to give a ‘footprint-free’ check on your credit score, without lenders seeing any evidence of it. It aims to give you an idea of whether to enter into the terms of a car loan, without negatively affecting your score in the first instance.

Speak to My Car Credit today to find out more

If you want to find out more about whether or not getting a car loan will hurt your credit, speak to My Car Credit today. Our friendly team can help you get a car finance quote with a soft search that won’t impact your score. From there, you’ll be able to discuss your viability for a loan with one of our advisors. Get in touch today.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

What Checks Are Done for Car Finance?

Try Our Classic Car Financing Calculator

What is the Average Car Loan Interest Rate?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car loan credit profile credit reference agencies Jan24

What Used Car Finance Rates Can I Get with Excellent Credit?

Shopping for a used car and feeling good about your credit history? That’s great news. Your financial footprint has a big impact on your ability to secure a car loan and there are huge benefits associated with keeping it in good health. If you’ve been really conscientious you might even land yourself in the coveted “excellent” category. In this case, you may be wondering about used car finance rates with excellent credit.

Considered the holy grail of credit scores, an excellent credit score has the power to unlock a wider range of financial products and services. What’s more, it can also increase your borrowing limits and reduce your interest rates. Before we dive into what used car finance rates excellent credit can unlock for you, let’s take a moment to define credit scores and why they matter.

Understanding credit scores

A credit score is a points-based rating calculated using your financial history. It offers lenders an idea of what you’re like as a borrower, using data from credit cards, loans, direct debits and other money-based sources. The higher your score, the better deals and rates you’ll enjoy from lenders. Similarly, lower scores jeopardise your chances of securing credit and enjoying access to the best rates.

Experian, one of the largest and most trusted Credit Rating Agencies (CRAs) in the UK and our CRA of choice at My Car Credit, defines credit ratings as follows:

“A credit score, also known as a credit rating, is a number that reflects the likelihood of you paying credit back. Lenders like banks and credit card companies will look at your credit history when they calculate your credit score, which will show them the level of risk in lending to you. The higher your credit score, the better your chances of being accepted for credit, at the best rates.”

Calculating credit scores

Lenders rely on several CRAs to generate your score, including industry leaders Experian, TransUnion and Equifax. Each agency uses a different numerical scale to calculate individual ratings. While the numerical scale can vary, all scores will generally fall into one of five categories – excellent, good, fair, poor and very poor.

For example, TransUnion calculates credit scores out of 710. Scores between 628 – 710 are considered excellent, while scores between 604 – 627 are good and scores of 566 – 603 are fair. Experian scores range from between 0 – 999, with scores of between 721 – 880 classified as fair and 961 – 999 considered excellent.

What’s an average credit score?

Drawing on data from more than 900,000 users, MoneySuperMarket estimates the average Brit has a credit score of 569 using the TransUnion scale. The south of England has the best track record, with Kingston upon Thames topping the leader board with an average of 586. Guilford, Redding, Redhill and Harrogate were all close behind.

What is an excellent credit score?

To be considered an “excellent” borrower, you’ll need to have an Experian score of between 961 and 999. This is the number that will help you secure access to the best car loans in the UK.

The perks of “excellent” credit

Find yourself in the highly sought after “excellent” category? Congratulations! You’ll be open to a range of benefits of excellent credit, including used car finance rates.

Say you’re looking to purchase a used car for £10,000. With an excellent credit score you’d increase your chances of securing such a large loan significantly. Your excellent credit would also unlock you the best interest rates, with typical Annual Percentage Rates (APRs) of around 6.9%. Over the course of a five-year loan, you would pay a total of £11,800, or £1,800 in interest.

For the same loan, a borrower with a “fair” credit rating would be given a higher interest rate to reflect the increased risk for the lender. The same £10,000 loan would be subject to an APR of 13.9% which would translate to a total payable amount of £13,685.20 over 10 years. The difference in interest paid is more than £1,885, meaning an excellent score saves you a sizeable amount of cash.

Improving your credit score

Not quite an “excellent” borrower? It’s important to understand that once your credit card rating is established it isn’t set in stone. Instead, credit ratings are dynamic and constantly evolving. They can increase or decrease over time depending on your financial behaviour, which means it’s important to stay on top of your credit and establish good financial habits.

The shifting nature of credit ratings is also a great opportunity to improve your score. If yours is less than ideal and you’re hoping to boost your eligibility, there are a few effective steps you can take. In no time you could secure the same used car finance rates excellent credit borrowers enjoy.

· Register to vote

Joining the electoral register can be an easy and effective way to boost your credit rating. It’s as easy as registering to vote via the gov.uk website and takes a matter of minutes.

· Set up direct debits

Forgetting to pay off your credit card or phone bill can have a negative impact on your credit score. Keep yours clean by setting up direct debits and eliminating the monthly task of manually transferring money between accounts.

· Reduce your credit card debt

Just because you have a £5,000 credit card limit it doesn’t mean your account should be maxed out. Generally, we’d advise using no more than 25% of your limit. The upside is that this shows lenders you’re a responsible borrower who won’t get out of their depth.

· Cull your cards

While it can be tempting to sign up for multiple credit cards this behaviour can compromise your credit score in the long run. This is because it can suggest you’re a serial borrower. As well as snipping your card in half you’ll also need to get in touch with your bank and close the account officially. While this may trigger a slight drop in your credit score initially, it should start to climb again soon.

Excellent credit rates for used car finance

Want to know more about how to make the most of your excellent credit score? At My Car Credit we specialise in helping top-tier borrowers secure the best used car finance rates excellent credit can unlock.

Don’t quite hit the mark? We’re also experts in securing loans for borrowers with good, fair, poor and very poor credit ratings do don’t be shy about reaching out if your score is less than ideal. Best of all, our car finance eligibility checker doesn’t affect your credit score.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

What Checks Are Done for Car Finance?

Try Our Classic Car Financing Calculator

What is the Average Car Loan Interest Rate?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

excellent credit score Jan24 used cars

Car Finance APR: What Does it Mean?

You need to buy a car but don’t have the money. Thankfully, your bank balance doesn’t mean you have to forfeit one of life’s main necessities. Car finance is on hand to provide the resources you require to own a vehicle.

Most people understand what the process entails, whether it’s opting for a hire purchase or a lease purchase with balloon payment. However, APR is something you’ll come across when searching for car finance and you might not know what it means. What is car finance APR? Keep reading to find out.

What is car finance APR?

The simplest way to understand APR is to view it as interest. The acronym stands for Annual Percentage Rate, and it’s the amount added on in interest yearly. It also includes any compulsory charges. APR continues to be included within your repayments deal until the deal is over and you either give the car back or own it outright.

How does it work?

APR works in the same way that most interest rates work. In terms of car finance, the dealership you choose will use a standard measure to calculate the amount of interest you need to pay. The higher the rate, the more you’ll pay back in the long-term.

What Can APR Affect?

Car finance APR mainly impacts how much you will pay over the course of a contract. The figure isn’t taken into account within the deal as it’s added on afterwards. Therefore, it’s essential to figure how much it is and whether you can afford it before signing on the dotted line.

Finance APR is a good indicator of offers as you can use the rate to compare quotes with other dealers on the market. For example, if everything is the same except for the APR, you could save a significant sum.

My Car Credit’s finance calculator

At My Car Credit, we recognise the need to be transparent, which is why we have a loan calculator tool you can use free of charge. If you ever wonder, ‘can I get car finance?’ you don’t need to wait too long to find out!

Of course, you can always contact a team member and discuss your options with them directly.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

What Checks Are Done for Car Finance?

Try Our Classic Car Financing Calculator

What is the Average Car Loan Interest Rate?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

apr apr calculator Jan24

Car Finance Repayment Terms: What’s Best for Me?

At My Car Credit, we understand how confusing car finance repayments can be. You might have found the perfect next set of wheels. However, you may also find yourself getting lost in a sea of paperwork and admin. Even worse, you may be getting tripped up over hidden costs and surprise terms and conditions.

But don’t panic – this article is designed to clear that confusion! What’s more, we’ll lay out what you can expect from different car finance repayment options, as well as the potential benefits and pitfalls of each. That way, you go into your search knowing what meets your requirements and how much you can afford. This means you can find a deal that suits you without wasting too much time or energy.

Don’t forget too, that once you’ve decided what kind of terms best match your needs, you can use our online car payment calculator to get a super speedy, straightforward quote from us.

Car finance repayments – what’s right for me?

First things first, and before you begin looking at repayment terms, it’s important to establish how much car finance you’d qualify for. Once you’ve worked this out, you’ll have a better idea of what to look out for when applying for car finance. This will allow you to tailor your search accordingly. We’ve also outlined what factors affect the cost of car finance too, in case you’re confused about that.

Repayment terms – what’s the difference?

Your car finance repayments will have a significant impact on what type of finance scheme best suits you. Below, we lay out the pros and cons of different repayment terms.

Short term loans

Typically, a short loan repayment term will tend to be between 18 to 24 months. Shorter repayment terms mean that you pay higher monthly repayments as you have less time to spread the cost. However, you’ll also pay less interest overall because you’re repaying your loan much quicker, slashing the amount of borrowing time.

The vehicle will also have a higher resale value once it’s been paid off. This is because a newer car is more attractive for re-sale than an older model, which is another factor to keep in mind.

Short repayment terms are great if you have a large monthly income and are financially stable. The upside is that you spread the car cost, slash interest, and can use your hard-earned cash on something else. Just be aware that you’ll likely be asked to prove that you have the income to fund a short-term loan. In the main, payslips and bank statements are the most obvious way to back this up.

Pros/Cons:

+ You pay off your owed balance quicker

+ Less interest payment overall

+ The vehicle will have a higher resale value once paid off

– You’re paying higher monthly repayments

– A potentially higher upfront payment

Long Term Loans

Long term repayments are the more traditional car finance package offered. You’ll usually spread the cost of your car over 48 or 60 months – 4 or 5 years in other words. This ensures that the repayments are more manageable than you’ll find in a short-term loan. What’s more, you may even be able to purchase a more expensive car, as you’re paying less upfront.

However, you’ll also end up owing money for a longer period of time. Plus, you’ll be paying interest for longer, which means the overall cost will be higher. This is because the amount you’re charged is based on the interest rate established at the start of the agreement, so you’re paying more to the provider with less value return on the vehicle.

Equally, a longer repayment period means that the value of your car will depreciate more. This is something to consider if you’re looking to sell or return the car at the end of the repayment term.

Pros/Cons:

+ Monthly repayments are more affordable

+ You might be able to purchase a more expensive car

– Lower resale value on the vehicle

– Interest payments are significantly higher

What’s the best option for car finance repayments?

It’s really important to go into your search for car finance knowing what you can afford. In addition, try to establish what suits your particular requirements – there isn’t a one-size-fits-all approach. If you don’t think you can front the monthly payments of a short-term repayment scheme, the long-term option is best for you. Equally, if you’re keen to trade in for a new vehicle after only a couple of years, the short-term option will be most appealing.

Using our car finance repayment calculator will help you to get a better idea of the best option for you. We design our car finance to be as flexible and user-friendly as possible. What’s more, we’ll give you a quote within minutes. We’ll only ask you for a few details, and our soft search check won’t affect your credit rating.

Talk to one of our friendly team today, and start your search for the best car finance for you.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

What Checks Are Done for Car Finance?

Try Our Classic Car Financing Calculator

What is the Average Car Loan Interest Rate?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car finance calculator Jan24 monthly cost repayments

How to Calculate Car Finance on Prestige and Supercars

Owning a supercar is the stuff of dreams. Petrolheads love the idea of cruising around in an iconic Ferrari or Lamborghini as they are the pinnacle of the industry. However, they are very expensive, with most in the hundreds of thousands of pounds range.

In 2017, for example, the then-new Bentley Continental Supersports was £212,500. In America, the fee was even higher (around £250,000) as different countries have different rates. Of course, prestige cars can charge as much as they like because of the element of luxury. For people who are desperate to add them to their collection, that means having the resources.

But, not everyone does, and even those who have often prefer to pay in instalments. This is where supercar finance comes in handy because it splits payments into affordable lump sums. In this post, we’ll take a closer look at car finance for prestige cars and supercars.

Is finance available for a prestige or supercar?

It depends on the circumstances. Broadly speaking, the answer is yes. Prestige car finance deals exist, and lenders are happy to offer them to eligible applicants. However, you need to meet the lending criteria before you are able to sign on the dotted line.

The best way to do this is to talk through your options and focus on the factors that impact the decision. For instance, boosting your credit rating will show creditors that you’re trustworthy, making them more likely to lend you the money. And, of course, you’ll need to be able to afford higher monthly repayments that come with the higher cost of a prestige car. Using a supercar finance calculator will help you work out your expected monthly repayments.

What financing method should you pick? Take a look below at the options on the table:

Hire purchase

Hire purchase, or HP works in the same way for supercars as it does normal cars. You agree to a set amount that you pay monthly for an extended period of time. At the end of the agreement, you own the vehicle and don’t need to pay anything else.

Personal contract purchase

PCP finance works in much the same way. However, instead of owning the car being mandatory, you have the option to give it back at the end of the deal. PCP contracts have smaller monthly sums but require a larger ‘balloon payment’ at the end of the contract if you choose to buy the car outright.

Equity Release

An equity release unlocks cash that you have in your car. Essentially, you can trade your current vehicle in and use the money to lower the value of a prestige car or supercar.

How do you work out the cost of supercar finance?

Given that they cost a lot more than most cars, it can seem quite tricky calculating the cost of supercar finance. Higher numbers can make things confusing, which can be enough to put off a lot of prospective buyers.

Thankfully, it’s a lot easier than it sounds. You simply take the value of the vehicle and divide it by the number of months in the repayment period. All that’s left to do is include the rate of interest – you can break it down into annual or monthly – and you have a quick and reliable figure.

Supercar finance calculator

If you prefer to let technology crunch the numbers for you, we understand. In fact, we completely agree because the right piece of tech is powerful and easy to use. That’s why our car payment calculator is on hand to help anyone who would rather call on the help of specialist software.

To do the maths on your next prestige vehicle, you merely need to enter the loan amount you’re looking for into the calculator. Next, pick the length of the repayment – we give loans from anywhere between three and five years. Finally, choose the credit rating that most suitably describes your situation.

Why should you use it?

Well, it eliminates mistakes for starters. But, if that’s not enough, check out these incredible features on our supercar finance calculator:

Results take a matter of seconds
There’s no impact on your credit rating
You can apply right away once you receive a loan offer

Let My Car Credit help you achieve your dreams

If you’ve been desperate to purchase a supercar for years, then My Car Credit is ideally situated to make your dreams come true. As a trusted and reputable broker, we draw upon a network of over 25 lenders to find a great deal, whatever your circumstances.

There’s no fuss or hassle, just a quality service that gets the job done.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

What Checks Are Done for Car Finance?

Try Our Classic Car Financing Calculator

What is the Average Car Loan Interest Rate?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car finance calculator Jan24 prestige supercar

Your credit score is one of the most important tools used by lenders to assess car loan applications. So, what credit score is needed for UK car finance? There’s no black-and-white answer, however, there is a lot to learn when it comes to credit scores.

Understanding credit scores and their impact on car finance

The ‘big three’ UK credit reference agencies

What credit score is needed for car finance in the UK?

Other factors that influence car finance approval

Can you get car finance with a low credit score?

How to check and improve your credit score

The role of My Car Credit in securing car finance

Frequently asked questions

Can I get car finance with no credit history?

Will checking my credit score lower it?

Does car finance improve credit score?

Rates from 9.9% APR. Representative APR 10.9%

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Will car finance affect your mortgage?

The importance of credit history and scores

Does car finance affect your credit score?

How car finance affects affordability assessments

What is affordability?

Does car finance affect affordability?

Minimising how much car finance affects your mortgage

Car finance made easy

Rates from 9.9% APR. Representative APR 10.9%

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You don’t need an ‘excellent’ credit rating to take advantage of car finance payment plans. If you have a lacklustre score and want to know more about how to finance a car with poor credit, we have answers.

Step 1: Find your credit score

Step 2: Crunch your numbers

Step 3: Secure a lender

Rates from 9.9% APR. Representative APR 10.9%

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Rates from 9.9% APR. Representative APR 10.9%

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Speak to My Car Credit today to find out more