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Can I Get Car Finance with Poor Credit History?

With the latest data from YouGov revealing 41% of British adults have missed debt repayments at some point in their lives, poor credit history is more common than you might think. There’s a shared belief that poor credit history can have a negative impact on your ability to secure finance. While there is some element of truth to this, it doesn’t mean you’re out of the running.

So, can you get car finance with poor credit history? Absolutely. Buying a car with poor credit is not always as straightforward as applying for a loan with a big deposit, a steady job and perfect credit history. However, don’t lose heart – with the right approach it can be done.

Worried your credit score may be a little tarnished? We’re here to help. Read on for our guide to securing car finance with poor credit history.

Car loans explained

Before applying for a car loan with bad or poor credit history, it’s important to understand exactly what you’re committing to. Like property mortgages, car loans offer you the freedom to secure a vehicle you may not be able to pay for upfront.

Car loans are not designed to help you purchase a vehicle you can’t afford in the long-term. Instead, they do allow you to spread out payments over a period of months or years. This means you don’t have to present a large sum of cash up front, which drastically increases the options available to you.

Get a roadmap of your credit history

Suspect you have poor credit history? The first step to securing a car loan is to arm yourself with a clear overview of your credit history and score. A credit report will lay out the raw data and is the best place to start when assessing your financial situation. It should cover any active credit you have, as well as previously missed payments.

Hard vs soft credit checks

All reputable lenders will want to know about your borrowing history before offering you a loan, which is where credit checks come in. There are two main types of searches you’ll encounter when checking your credit history – hard and soft. ‘Hard’ checks can leave a mark on your credit score. What’s more, they give lenders insight into how many loans you’ve applied for in the past. If abandoned, hard credit checks can reflect badly on your borrowing status and damage your credit score even further.

In comparison, ‘soft’ searches aren’t visible to lenders and won’t affect your credit score. Instead, they offer lenders a good overview of your loans and finances, without leaving a visible footprint.

Overcoming poor credit history

Struggling with poor credit? You’re not alone. There are all kinds of reasons people may be struggling with poor credit history. Here’s a few helpful ways to overcome poor credit history and secure a car loan.

Commit to regular repayments

One of the best ways to improve your status as a borrower is to commit to regular repayments on your existing debts. Even paying off the minimum amount shows lenders you have the capacity and commitment to repay loans. Over time this will help to improve your credit score.

Register on the electoral roll

Registering on the electoral roll makes it easy for lenders to check your name and address, as well as minimise the risk of fraud. It helps to present yourself as an active member of the local community and offers reassurance you’re a real person.

Save a good deposit

Putting together a healthy deposit can be a good way to show lenders you’re serious about saving. It also proves you have the ability to make future repayments. It improves lender confidence and can ultimately help to secure bigger loans at lower interest rates.

Seek help from a specialist lender

Seeking help from a specialist lender is one of the best ways to rise above poor credit history. At My Car Credit, we aim to help all applicants secure the car finance they need with quick and easy online applications.

Let us help with your car finance

As part of leading motor finance broker, Evolution Funding, My Car Credit has access to one of the largest ranges of car finance lenders in the country. We use specially developed technology to match your unique profile with the best loan products for your circumstances. And yes, this includes customers with poor credit history.

We pride ourselves on helping Brits with all financial backgrounds get behind the wheel. Why not get an application started today to jumpstart your journey to a new car loan?

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Can I get car finance without a credit check? (a complete guide)

Man using phone to check for car finance without credit check

If you want to apply for car finance but suspect you may have a poor credit profile, or no credit history at all, you may be wondering “Can I get car finance without a credit check?”. You may be surprised to know that all regulated lenders perform credit and affordability checks as part of their commitment to responsible lending. However, this shouldn't put you off applying. There are plenty of car finance packages for those with less than perfect credit history. It is also possible to check your car finance eligibility using soft search.

No credit check car finance

If you have bad credit or even no credit, you may be searching for car finance options where you will not get a credit check. The reality is that all lenders will want to check your credit history before they loan you money.

Anyone searching for no credit check car finance will be disappointed. However, this is nothing to be worried about and there may still be options for financing a reliable car or brand-new vehicle.

Why do lenders do a credit check?

When you apply for car finance, lenders do credit checks as part of the application process to understand your financial behaviour and assess your history of handling your finances. They will be assessing your ‘creditworthiness’, or your suitability to receive financial credit. This is often based on how reliable you have been at paying back money in the past – your credit history.

Finance lenders have an obligation to lend money responsibly. It can be frustrating knowing that your finances and credit score will be scrutinised. However, this ensures that you are not lent more money than you can afford (called ‘affordability’). It also confirms that the car finance product you are sold is suitable for your circumstances.

Whilst there are some payday lenders who will offer finance without a credit check, you will be charged enormous rates of interest to accommodate the increased risk of lending. This is likely to be unaffordable for larger loans, such as buying a new or even used car.

By having a credit check done, this makes sure you are offered the correct rate of interest for your financial situation, rather than over-paying for a car finance deal.

Soft search versus hard search

When shopping around for car finance, customers can be concerned about damaging their credit scoring through multiple hard searches.

To avoid this happening, and to make it easier for you to shop around, we only do a soft credit check when you first apply. This allows us to do preliminary background checks to establish your eligibility for car finance.

The important thing about a soft credit check is that it doesn’t show on your credit file. The result is that they don’t impact on your credit score, nor do they affect your future chance of securing credit. You can have as many soft searches as you like, and only you can see them on your report. So, in some ways, this can be seen as no credit check car finance – although a hard search is required further down the line.

After a soft check, a hard search happens when you have confirmed that you are eligible for car finance and are happy to proceed with your application.

Be aware that a hard credit check will show on your credit file. It is worth bearing in mind that too many hard credit checks over a short period of time can affect your future ability to secure car finance – or any other type of finance for that matter. The reason for this is that they tell lenders about credit applications, and therefore may be a higher risk.

One of the great things about using soft search first is that you can establish your eligibility for car finance before you move ahead with a full search. When you then go on to secure car finance, so long as you keep up your repayments, you may actually improve your credit rating. You can even repair your credit file if it is damaged!

When you apply for credit or a loan, the lender will perform a credit check (sometimes called a credit search). This means that they can look at the financial information held on your credit report.

A credit check will show information such as:

Your name and date of birth.
Your current and previous addresses.
Whether you are on the electoral register.
Your credit accounts, including bank and credit card accounts, outstanding loan agreements or utility company debts. Late or default payments will show and stay on your credit report for at least six years.
Financial associations. These are people you are financially linked with through joint credit.
Public record information. This only covers bankruptcy, since civil judgments and tax liens were removed from any credit check in 2018.
County Court Judgments (CCJs), bankruptcies and individual voluntary arrangements (IVAs). These stay on your report for at least six years.
Banks and building societies. Only your overdraft is shown, not your bank statements, balances or savings.
Any convictions of fraud, or if someone has stolen your identity and committed fraud.

Details such as salary, religion, or criminal convictions (other than fraud) are not included.

How can I check my credit score?

You may want to check your credit history before you start applying for car finance. When checking your credit score, you won’t leave a mark on your file and it can help you understand what lenders will see.

Checking your credit history is also a great opportunity to improve your credit score by ensuring that all information held on you is correct and up to date. For example, ensuring that out-of-date financial associations don’t have a negative impact on your credit score.

Your credit score is an indication of the health of your credit file and is usually scored out of 1000. The higher the score, the better your credit rating.

There are three main credit reference agencies in the UK – Equifax, Experian, and Transunion (formally Call Credit). They hold financial information on you and are governed by the Information Commissioner’s Office or ICO.

Websites like Experian allow you to access your credit score for free.

Who will finance a car with a bad credit file?

My Car Credit has over 30 lenders on its panel and so the chances of getting you an acceptance are increased (although cannot promise guaranteed car finance). However, even people with really bad credit can get car finance, so don’t lose hope!

We have lenders that specialise in car loans for customers with damaged or poor credit. Where we match you with a lender, you will usually have to pay a higher interest rate, as you represent an increased risk for the lender. Of course, you can pay off your loan faster if you wish, and this can help to repair your credit file.

It can be helpful if you put down as large a deposit as you can afford and keep the repayment term shorter. However, it’s important not to overstretch yourself on your monthly payments.

Using a Guarantor Loan to finance a car

You may find a Guarantor Loan to be a suitable option. This is a loan where a third party that you trust (usually a family member or close friend) guarantees to make the repayments on a car loan if you fail to. Do bear in mind that you do remain responsible for the car finance agreement.

Please be aware that if you fail to make the repayments, your guarantor will become liable. If your guarantor fails to make the payments, you could both be issued with CCJs, which would affect both your abilities to obtain credit in the future.

Whilst Guarantor Loans are a great way for someone with impaired credit to get car finance, they should not be taken lightly as they come with great responsibility. You can watch a video and read more about Guarantor Loans for car finance.

How can I improve my credit score?

Another option if you have a bad credit history is to work to improve your credit score over time. The good thing about poor credit history is that it isn’t permanent. While the most scrupulous lenders might check further back for poor credit history, most details about missed payments and even court judgements won’t affect your credit status after six years.

This won’t help for car finance in the here and now, but it will make any future car finance application a little easier. Not least because you’ll be less worried about a credit check. The good news is that car finance is one of the ways to improve your credit score over time. That’s because you’ll be showing you can pay back a car loan with regular monthly payments.

Here are some other steps you can take:

Join the electoral register

If you haven’t already, you should ensure your details are on the electoral roll. Why? It’s a simple way for many lenders to check your identity and address as part of a credit check.

Check details are correct

You could also improve your credit rating by ensuring credit reference agencies have the right details for you. There are three main credit reference agencies in the UK – Experian, Equifax and TransUnion. They hold information such as your address history and financial history – accounts, payments, and any defaults or IVAs.

You can see all of this information on a credit report. If you find any discrepancies, you can report them to the agency in question, who will investigate and potentially update their records. Correcting these issues could improve your poor credit score.

Stay in the same home

Constantly changing addresses is a tell-tale sign of applicants with bad credit. In contrast, keeping the same address shows stability and security to a lender, which could improve your credit score.

Be smart with spending

If you’ve been refused credit, there’s no better way to move towards good credit history than spending wisely. Staying well within your credit limit will show that you’re responsible with your money, showing other lenders that you’ll be able to keep up with payments – and minimise the risk of late payment.

Pay off your debt

Even soft credit checks will show if you have outstanding debt. This is a big red flag for most lenders and car finance companies because it shows that your current financial situation is unsustainable. As well as spending less, try to improve your current circumstances by paying off outstanding debts. This could take you one step closer to a new car in future.

Here to help

With no credit check, car finance can’t be processed. But hopefully, we’ve shown you that credit checks are nothing to be worried about. It is more than possible to check your eligibility for car finance before you have a hard credit check. What’s more, credit checks simply ensure that lenders loan you the right amount, at the right interest rate for your circumstances.

Whilst there is no such thing as ‘no credit check car finance’, we hope we’ve helped you feel more confident about applying for car finance to buy your next car!

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

bad credit credit check credit score experian Jan24 no credit poor credit

Can I Get a Car Loan with a Poor Credit Score?

Car driving bought with a low credit score loan

It’s common for lenders to carry out a credit check on anyone who applies for a car loan. This is usually a ‘soft search’ initially. Credit checks can lead to those with poor credit scores shying away from applying due to the fear of rejection. However, you’ll be surprised how easy it is to successfully obtain a loan by making a few minimal changes.

In this short guide, we’ll explain everything you need to know when applying for a car loan with poor credit. In addition, we’ll cover how to get the best deal by ensuring your credit score is up to scratch.

What is a car loan?

Finding the right car within your price range can be a challenge. But, with a car loan, you can spread the payments out over a course of several months or years. This is a great way of significantly increasing the options available to you.

Two popular forms of car loan are a personal loan and Hire Purchase (HP). A personal loan will see someone borrow money from a lender, bank or building society. This allows them to have instant ownership of a car. In contrast, HP will have the individual pay an initial deposit (not always required) with fixed monthly payments for the next three to five years. They effectively hire the vehicle over the period, with the option to purchase at the end.

At the end of the term, they will be offered three choices; to either return the car to the supplier, keep it, or trade it in for a replacement. However, you must be careful not to miss the repayments before the end of the term. In these cases, the finance company may decide to repossess the vehicle to settle the debt.

How can you improve your credit score?

A lender will perform a credit check to ensure that the person applying can afford the monthly payments. People who obtain an excellent credit score will have demonstrated a firm grasp of their finances. In theory, this makes for a reliable choice for lenders.

Those described as having a ‘thin’ credit history will have a history of missing payments. Alternatively, there may be little concrete evidence of financial security, such as never owning a credit card or bank account. A higher credit score will open more doors. This could include a much more comprehensive range of car loan options. These are often accompanied by much more favourable interest rates.

Here are some simple but effective ways of raising your credit score.

1. Identify the problems in your credit report

Before you apply for a car loan, it will be wise to get a free copy of your credit report. This will give you an idea of any pitfalls that may scupper your loan request. There may be some glaring mistakes you are making in the way you handle your money, damaging the profile. It is also worth ensuring it is up to date and doesn’t contain any errors or inaccuracies which could unfairly affect your score.

2. Apply for a credit card and use it sensibly

Credit cards have a strange reputation of being a poor way to save money. But the truth is that as long as you’re making repayments on time, they will put you in good stead to improve your credit score. Proof that you can budget and regularly meet repayment deadlines will help you secure a more competitive car loan deal.

3. Stay away from bad credit

If you’ve ever been financially linked with someone you know has bad credit, such as a joint account or shared mortgage, it may lower your credit score. If this is the case, it will be a good idea to issue a notice of disassociation. This informs lenders that you are no longer financially linked and should be judged on your own merit.

4. Settle any loans

Now is the time to settle those loans and reduce your debt as much as possible. This is easier said than done, but to get behind the wheel of the car you desire you may need to work at it.

What are my other options for obtaining a loan?

Start by crunching the numbers on a car loan calculator. You may consider making slight changes to the car loan variables to see how it can help. No matter how low your credit score, some changes can ultimately work in your favour to help you get a car with poor credit history.

1. Pay a larger deposit

Simply put, a larger up-front deposit will mean your monthly payments will be reduced. This in turn minimises the risk for the lender in ensuring they are met. It can be frustrating as you’ll be forking out a potentially huge chunk of money. That said, it is often a sure-fire way to improve your chance of getting the deal.

2. Pay a higher interest rate

Someone with a low credit score will often need to accept a higher interest rate than the advertised representative rate. Again, it may seem frustrating on the face of it. However, don’t despair as it tends to mean only a slightly higher monthly payment.

3. Choose a lower annual mileage limit

Opting for a lower annual mileage limit can result in much lower costs month to month. This is because the car will be worth much more to the dealer at the end of the loan. This is usually related to fewer miles on the clock and less wear and tear.

However, you will want to keep the figure realistic. Going over your allowance will end up costing you dearly. You will find that there are harsh penalties that charge you for every extra mile taken.

4. Choose a used car

Opting for a loan on a used car will ultimately see you borrowing less money from a provider. This improves the possibility of obtaining a loan, even with a poor credit score. There is much less risk for the dealer as the car will already have depreciated in value. However, this doesn’t deflect from the fact that used cars are mostly reliable and of good quality.

If you worry about being able to afford to buy a car, this may be the best and most sensible option.

Need help getting a car loan with a poor credit score?

Take the headache out of getting a car loan with a straightforward and simple chat with our friendly specialists. Find out more about how we can find the right deal for you no matter how your credit score may look.

You’re not in this on your own, and we’ll support you every step on the way to get you on the road with the car of your dreams. Give us a call on 01246 458 810 or email enquiries@mycarcredit.co.uk to find out more

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

PCP: Is It Worth It?

How Long Does It Take to Buy a Car?

Car Finance vs Personal Loan, what’s best for me?

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 score Jan24 poor credit

Will I Get Accepted for Car Finance?

In the UK, there are multiple options when it comes to paying for your car. Given that a car is the second most expensive purchase you will probably ever make, after a house, it’s very important you get the right option for you.

You can purchase a car outright – which isn’t for everybody – or you can opt for car finance. Some car dealerships offer their own finance options, but this is problematic. How will you know if your application for finance will be accepted? And do you really want to visit a car dealer, choose a car and apply in-store – with the risk of being rejected in-person? There must be an easier way…

Read on as we answer all of your questions about car finance approval.

What actually is car finance?

Car finance is a credit agreement made between you and the lender, organised either directly with the lender, via your car dealer or using a car finance broker. Car finance involves paying for your car through an initial deposit payment, and then paying off the rest of the costs through monthly instalments. In the UK, it is common that car dealerships offer car finance options when consumers purchase a new car.

Can I get car finance?

There are several factors that can impact whether you can get car finance in the UK:

Age – To take out a car finance plan, you must be aged 18 to 75 years’ old.
Residency – You need to be a resident in the UK for at least three or more years. Most companies will not take on temporary residents.
Credit score – For most lenders, this is a big one. The better your credit score, the more likely you are to get approved, but some brokers – like My Car Credit – work with lenders who will take on applicants with poor or bad credit scores.
The car – The car needs to be less than 8 years old when you first take out the finance plan, and it must be less than 12 years old when the finance plan ends.
Employment – Being able to prove you are in stable employment will be favourable for most lenders. Normally, they ask for your previous three months’ bank statements and payslips to prove this.
Benefits – Most lenders will require at least half your benefits to be income based. Benefits that would count as a form of income are, Carers’ Allowance, Local Council Tax Support, Disability Living Allowance, Incapacity Benefit (long term incapacity), Tax Credits, Pension Credit and State Retirement Pension. For any other disability benefits, lenders are more flexible due to the nature of the benefit and will often accept government-funded allowance.
Retirement – Despite being out of employment, retired applicants may be in a good financial position. They would still be required to have proof of their income, whether that be from a pension, investment or property rental income.

What is a credit score?

A credit score is an expression which represents the creditworthiness of an individual. It shows someone’s credit history and lets lenders know what kind of borrower they are and how likely it is that they will manage repayments.

When you apply for car finance, your credit score will be looked at by your lender. People with a higher credit score are more likely to be successful when applying for car finance, and sometimes they can even get better interest rates. This is because they are considered as a ‘lower risk’ when compared to others with a lower credit score.

Lenders will use your credit score to tailor a car finance plan to you. If you have a higher credit score, some lenders will approve your car finance quicker and can often offer you lower interest rates.

Can I still get car finance if I have a poor credit score?

A credit score can impact on your eligibility for car finance, but a poor or bad credit score doesn’t always rule you out. If you have a poor credit score, you will have to jump through hoops with some lenders. The worse the score, the more hoops you will have to jump through.

However, at My Car Credit, we aim to find a car finance option that works for people with a whole range of credit scores and personal circumstances. You can use our car finance calculator to work out if you will be accepted for car finance with your credit score – and to find the best car finance option for you from our large panel of lenders.

Would I get accepted for car finance?

You could go straight through your car dealer for your car finance option, but they often prefer to only offer car finance to good or excellent credit scores. At My Car Credit, we consider all individual circumstances, with the aim of making car finance as simple and accessible as possible.

We have the largest panel of car finance lenders meaning that we are more likely to get someone a car finance agreement. Our smart technology allows us to place you with the best lender for your circumstances in a matter of seconds. We also have a team of manual underwriters, who can assess your individual circumstances where we haven’t been able to find you a deal automatically.

Find out if you can get car finance

At My Car Credit, we aim to help you through every step of the car finance process to make the process as hassle-free as possible.

For an instant quote, and to see what car finance plan you are eligible for, please use our simple car finance calculator. We are open 7 days a week and our website has loads of helpful tips, guidelines and answers to any questions you have.

For more information, call us on 01246 458 810 or email us at enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

How Do Car Finance Calculators Work?

Why Was I Denied a Car Loan with Good Credit?

Refused Car Finance – What to Do Next

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 criteria car finance eligibility credit score Jan24 poor credit

How to Get Car Finance with Poor Credit

Between July 2018 and June 2019, 9 out of every 10 cars sold in the UK were paid through some sort of car finance. With that in mind, it’s clear that finance has become the most popular way to buy a car. However, many people are still unsure about their eligibility. Can you get car finance with poor credit, for instance?

In this post, we’ll explore how car finance works and how to get car finance with a poor credit score.

What exactly is car finance?

The FLA defines car finance as a plan that spreads the cost of a new or used car. Instead of paying the full amount for the car upfront, consumers can pay monthly towards the overall cost of their purchased car.

In the UK, it is common for car dealerships to offer finance options to their customers. Alternatively, you can get finance through dedicated finance brokers, who will offer a wide range of financial deals to their customers via a panel of lenders. This allows them to find the best available deals to suit each individual customer.

What impacts whether I am eligible for car finance?

Many factors can impact your eligibility for car finance:

Age – To take out a car finance plan, you must be aged 18 to 75 years’ old.
Residency – You need to be a resident in the UK for at least three or more years. Most companies will not take on temporary residents.
Credit score – For most lenders, this is a big one. The better your credit score, the more likely you are to get approved.
The car you want to take a finance plan out on – The car needs to be less than 8 years old when you first take out the finance plan, and it must be less than 12 years old when the finance plan ends.
Employment – Being able to prove you are in stable employment will be favourable for most lenders. Normally, they ask for your previous three months’ bank statements and payslips to prove this.
Benefits – Most lenders will require at least half your benefits to be income based. Benefits that would count as a form of income are Carers’ Allowance, Local Council Tax Support, Disability Living Allowance, Incapacity Benefit (long term incapacity), Tax Credits, Pension Credit, and State Retirement Pension. For any other disability benefits, lenders are more flexible due to the nature of the benefit and will often accept government-funded allowance.
Retirement – Despite being out of employment, many retired applicants will be in a good financial position. They would still be required to have proof of their income, whether that be from a pension, investment or property.

How credit affects car finance eligibility

A credit score is a numerical expression, which represents the creditworthiness of an individual. It represents someone’s credit history and tells lenders a lot about what kind of borrower they are and how likely it is that they will manage repayments.

When you apply for car finance, your credit score will be looked at by your lender. People with a higher credit score are more likely to be successful when applying for car finance, and sometimes they can even get better interest rates. This is because they are considered as ‘lower risk’ when compared to others with a higher credit score.

Lenders will use your credit score to tailor a car finance plan to you. If you have a higher credit score, lenders can often approve your car finance quicker and offer you lower interest rates.

Can I get car finance with poor credit?

Many dealerships prefer to only offer car finance plans to good or excellent credit scores, which is not good news if your credit score is not particularly great. The lower your credit score, the more hoops they will make you jump through.

While poor credit can make some finance applications tricky, it doesn’t mean you can’t get credit full stop. At My Car Credit, we are committed to finding a finance package that suits you, wherever possible. With the largest panel of lenders out of any other UK broker, we are better placed to get you approved for car finance with a poor credit score compared to other brokers.

Our clever technology allows us to use data-driven decisions to place you with the best lender. We also have a team of manual underwriters who can assess each customer’s individual circumstances to ensure we always give you the best deal on car finance available from our lenders.

Our simple-to-use car finance calculator allows you to see if you will be eligible for car finance with poor credit. Taking your credit score into account, you can get a clear idea of the finance on offer, changing the loan amount and repayment term to suit you.

Where can I go to get car finance with poor credit?

If you’re looking to get car finance with poor credit, My Car Credit can help. Simply enter your credit score, loan amount and repayment terms on our simple car finance calculator and let us do all the legwork.

We’re fully FCA compliant, meaning our customers know exactly what they are getting from us. If you want to find out more about the car finance we can offer you with poor credit, get in touch with our team today. You can call us on 01246 458 810 or email enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

What’s the Best Way to Compare Car Finance Deals?

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

Tips for Securing Affordable Used Car Finance Monthly Payments

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

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What Are the Different Credit Score Ranges?

Your credit score acts as a tool for lenders to know how risky it might be to lend money to you. To understand what your credit score means you need to know which credit score range it falls into.

What are the different credit score ranges?

All credit scores are split into a series of ranges which act as a rough indication of how well you are viewed by finance lenders. Essentially, the higher your credit score is, the more trustworthy you are in the eyes of the lender. This means that you’re likely to be accepted for loans and receive better interest rates. Credit scores run from 0 to 999 and are split into several ranges in between.

Here’s a full breakdown of the Experian credit score range and what it means:

Excellent (961-999) – Will be accepted for loans and receive the best interest rates.
Good (881-960) – Almost certain to be accepted for loans and receive good interest rates.
Fair (721-880) – More than likely to be accepted for loans and receive fair interest rates.
Poor (561-720) – Could be accepted for loans and receive higher interest rates.
Very Poor (0-560) – Less likely to be accepted for loans and likely to receive high interest rates.

What do these credit score ranges mean?

Understanding your credit score without knowing which range it falls into is like trying to understand a word without its context – the meaning of one relies on the other. What is also important is where your credit score sits in this range. For example, a credit score of 881 sits in the ‘good’ range on most credit score ratings. This would tend to indicate that you have a good chance of being accepted for loans and receiving competitive interest rates. However, 881 is on the cusp between the ‘good’ and ‘fair’ range. So, whilst you have a ‘good’ credit score, you’re not as financially secure enough to receive the rates that someone in the middle of that range would receive.

Here to help, whatever your credit score

At My Car Credit, we are happy to talk to you whatever your credit score. What’s more, we’ll try our best to get you the right car finance deal for your circumstances, including poor credit car loans.

For more information around improving your credit score, check out our blogs.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Tips for Securing Affordable Used Car Finance Monthly Payments

What Criteria Poor Credit Car Finance Lenders Look for in an Application

How Long Does It Take to Get Your Credit Score Up?

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 credit reference agencies credit score excellent credit score good credit score poor credit

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Rates from 9.9% APR. Representative APR 10.9%

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Excellent

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Fair

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Bad

Require more help?

Your credit score acts as a tool for lenders to know how risky it might be to lend money to you. To understand what your credit score means you need to know which credit score range it falls into.

What are the different credit score ranges?

What do these credit score ranges mean?

Here to help, whatever your credit score

Rates from 9.9% APR. Representative APR 10.9%

Related articles

Excellent

Good

Fair

Poor

Bad

Require more help?