Rates from 8.9% APR. Representative Example: Borrow £12,000 over 5 years with a £0 deposit. Representative 19.8% APR fixed rate. Monthly payment: £306.04. Option to purchase fee £10 payable. Total cost of credit: £6,372.40. Total amount repayable: £18,372.40.
Car Finance 247 Limited is a credit broker, not a lender.
If you have a poor credit score and you'd like to take out finance on a vehicle, it can be difficult to find a suitable car finance platform. However, at Car Finance 247, there's no need to worry, as we’re here to help. We will do everything we can to find you a deal, even if you have bad credit
Building up a good credit score can be difficult. To make a start, you usually need stable employment. In many cases, a car becomes essential for commuting to work. However, undergoing credit checks can make the process extremely difficult, particularly if you can't find a car finance platform that can offer you a deal.
At Car Finance 247, we understand this dilemma, making the financing process as straightforward as possible for people with poor credit history by working with a wide panel of lenders.
If you'd like to get started, all you need to do is click on the 'Get my quote' button. However, if you'd like more information first, please make an enquiry and our friendly, expert team of account managers will be happy to help.
A bad credit rating usually stems from missing payments or historical financial difficulties, and it can take a long time to build up good credit. The absence of a universally defined bad credit score can make the process challenging, as the UK’s three credit reference agencies use different scales to formulate and measure ratings.
A credit rating is a score assigned by various credit reference agencies, assessing the likelihood of businesses and individuals being approved for credit by lenders. Generally, the higher the rating, the more likely it is that credit will be approved by lenders. The good news is that your credit isn’t fixed, so if yours sits within these bands then you can take steps to improve your score.
Here are the bandings that Experian, Equifax, and TransUnion currently use to define a poor/very poor credit score:
| Bandings | |
|---|---|
| Experian | 0-720 |
| Equifax | 0-438 |
| TransUnion | 0-566 |
You could still secure bad credit car finance as we have specialist lenders on our panel who look at each application individually – even if you’ve been refused car finance elsewhere.
At Car Finance 247, we know that credit scores come in all shapes and sizes. If you’ve had a CCJ, IVA, been in mortgage arrears, or missed payments in the past, then your credit score could need some work.
But having bad credit doesn’t mean you have to give up on getting car finance. There’s no judgement here.
While we can’t guarantee we’ll be able to find you an approval, our lenders will look at every application individually, taking a range of factors into account to search for a car finance deal that’s right for you and your circumstances. Credit is subject to status.
For illustration purposes only. The rate and payment you may be offered will be based on your individual circumstances.
Rates from 8.9% APR. Representative Example: Borrow £12,000 over 5 years with a £0 deposit. Representative 19.8% APR fixed rate. Monthly payment: £306.04. Option to purchase fee £10 payable. Total cost of credit: £6,372.40. Total amount repayable: £18,372.40.
Car Finance 247 Limited is a credit broker, not a lender.
Credit is subject to status.
There are a few different types of car finance that could still be available to you, even with bad credit. At Car Finance 247, we work with lenders who offer Hire Purchase, Personal Contract Purchase and refinancing, subject to status.
Each of these options give you a chance to get back on the road without having to pay the full amount for a car upfront. Instead, you’ll make fixed monthly payments over a set loan term, so you can manage the cost more easily. Here’s a look in more detail.
HP is one of the most straightforward forms of car finance, as you simply pay off the cost of the car, plus interest. You might need to pay a deposit upfront, followed by monthly payments and interest over your agreed loan term. Once the final payment has been made, you own the car. HP is typically a bit more expensive monthly than PCP, but often cheaper overall for people who want to own a car.
With PCP, you’ll still make monthly payments, but instead of paying off the full cost of the car, you’re only covering part of its value during the agreement. At the end of the term, you have three options: return the car, trade it in for a new one, or pay what’s known as a ‘balloon payment’ to keep it. The balloon payment is usually a large sum that covers the remaining value of the car, based on what it’s expected to be worth at the end of the contract.
PCP can keep monthly costs lower, which may be helpful if you’re trying to rebuild your finances after bad credit. But, you have to pay more at the end if you want to keep the car.
If you already have car finance in place but are struggling to keep up with the payments, refinancing could be an option. This means taking out a new agreement to replace your current deal. People do this to reduce their monthly payments by spreading the remaining balance over a longer term, or get a better interest rate than their current one. Even with bad credit, some lenders may be able to help you refinance, depending on your circumstances.
Please note: All finance offers are subject to status and affordability assessments. Availability depends on your circumstances and lender criteria.
“Car finance can be a lifeline for those with bad credit as it offers a manageable way to own a car while rebuilding your credit score with consistent, on-time payments”
Bad credit can be caused by a few different factors. Some reasons you might have bad credit include:
If you’ve never borrowed money before and have no credit history, it can be hard to buy a car on finance. That’s because lenders have no way of knowing what kind of borrower you’ll be. Technically, no credit isn’t classed as bad credit, but in the eyes of some lenders, you may be viewed in the same way.
You should always be cautious with any lender that claims to be able to offer no credit check car finance, especially as a young driver or someone with no credit history. Credit checks are an important step in the financing process, providing reassurance for both the lender and the borrower. When you get a quote with Car Finance 247, we’ll only run a soft credit check unless you choose to proceed. Only then will we run a hard credit check, which may affect your score.
Even so, if you’re concerned about your credit history, you may still be able to find a finance option that works for you. Please get in touch with our expert team and we’ll discuss your options with you.
When applying for car finance, you will need to provide several pieces of paperwork during the assessment period. We work with a panel of lenders – including some that can offer poor credit car loan options – and the documents they need can vary.
In most cases, we’ll usually ask for:
Are you self-employed with bad credit? We work with lenders that can help people with a range of employment circumstances secure car finance, subject to approval.
The best thing about credit scores is that they aren’t fixed - you can take steps to improve your score over time. Keep in mind though that it isn’t an exact science and the results won’t be instant. Another thing to remember is that each credit reference agency uses a different system to calculate your score, and you may find that your score is slightly different depending on the agency used.
If you’re looking to improve your credit score, there are several steps you could take:
If you’d like to find out more about improving your credit rating, our How to Boost Your Credit Score page may be of interest.
At Car Finance 247, obtaining car finance is all about helping people improve their everyday lives. We believe that everybody deserves a feel-good car buying journey. We’ll use our experience to find the best deal from our wide panel of lenders. Because when it comes to finding car finance, we go the distance.
Plus, you’ll have a dedicated account manager on hand to help guide you through the process and answer any questions you may have.
Whether it’s sorting out the school run, getting that big boot for the big shop, or a car you’re proud to park outside the office, we’ll work to find you the best deal from our panel of lenders, even if you have bad credit. Credit is subject to status.
At Car Finance 247, we are a fully regulated car finance broker authorised by the Financial Conduct Authority (FCA). We work with a panel of trusted lenders and whilst we can’t guarantee an approval, we try to help everyone get car finance, no matter their financial situation. Please remember that credit is subject to status and eligibility criteria. We’re dedicated to keeping the process clear, fair, and transparent.
You may be able to get a car on finance with bad credit. Here at Car Finance 247, we work with a wide panel of lenders and some of them could help people with poor credit scores explore car finance.
And it’s not necessarily all about your score; if provisionally approved, our lenders will consider each application individually and take a range of factors into account to try and find a finance option that’s affordable and right for you and your circumstances. Credit is subject to status.
Whilst we can’t guarantee that your finance application will be accepted, we will do our best to find the right deal for you.
There are lenders on our panel that could finance a car if you have bad credit.
Each lender has different criteria that they need applicants to meet and it’s not necessarily all about your credit score. Lenders may consider a range of criteria including:
Once assessed, you’ll be able to find out what finance options might be available and suit your circumstances. Credit is subject to status.
While having a large deposit will not change your credit score, it could mean you need to borrow less money to buy a car.
Having bad credit won’t necessarily prevent you from finding a loan, but having a large deposit to put down could improve your chances of being accepted (although this isn’t always a given). If you can put down a large deposit, your total loan amount will likely be lower. This means that your monthly repayments could be more affordable, and you may need to pay back less over time.
Our Car Finance Calculator may also help you to see how much your monthly repayments could be, depending on your initial deposit. Credit is subject to status.
If you have bad credit, you could still buy a car. Having a poor credit rating could make it harder for you to find a car finance deal, but it’s not impossible.
When you apply with Car Finance 247, we aim to help you find your finance first meaning you can choose a new car with confidence, even if you’ve been refused elsewhere. You’ll receive a decision in minutes and if we can find you an approval in principle from our panel of lenders, you can then choose a vehicle from our car search or any verified UK dealer. Credit is subject to status.
There’s no way to wipe your credit clean but you can improve a bad credit score over time.
Ways you could improve your credit score include:
If you have a marker on your credit report that is impacting your score, like a CCJ or a default, then these will be automatically removed, usually after 6 years. Similarly, if you check your report and notice that there’s a mistake, you can raise this with the relevant credit reference agency and request to have it removed.
Car finance can affect your credit score positively or negatively, depending on the type of borrower you are. You may see your score dip slightly when you first take out a new loan, as you’re adding new debt to your file.
If you keep up with your repayments, this could help you build credit over time. However, if you miss payments or regularly pay late, this could negatively affect your score.
There’s no set credit score that will guarantee you’ll get finance to buy a car. While a low credit score could make it more difficult to find a loan and some lenders may refuse you finance, we work with lenders that specialise in bad credit car finance.
This means that we may be able to help people with poor credit scores find a car finance deal that’s right for them. You can get an estimate of what your monthly repayments might look like if you have a low credit score by heading over to the Car Finance Calculator. Credit is subject to status.
You may be able to finance a car with a 500 credit score. There’s no set score that can guarantee you’ll get a car loan and no minimum acceptance score.
Each credit reference agency in the UK uses different credit scoring matrixes. A credit score of 500 may be considered low or poor by some of the UK’s credit reference agencies and it may restrict the number of lenders available to you. However, it doesn’t mean you have to give up on finding car finance completely.
At Car Finance 247, we work with a wide panel of lenders including those who consider people with poor credit scores find and finance their next car. Credit is subject to status.
We work with a wide panel of UK lenders and some do, some of which may offer car finance options with no deposit – even if you have bad credit, subject to status.
If provisionally approved, speak to your account manager who can let you know how it works and what options are available to you.
You could get a car finance decision in minutes. Make an application, pop the kettle on, and you could find out if you’re approved in principle by the time you’ve finished your tea.
If provisionally approved, your dedicated account manager will give you a call to confirm your details and discuss the next steps. Credit is subject to status.
There’s no such thing as guaranteed car finance. There are a range of factors that determine whether you’ll be approved for car finance and every loan offer is subject to status.
We work with a panel of lenders and while we can look for loans for customers with a variety of different credit profiles, we can’t offer guaranteed car finance.
At Car Finance 247, the car finance process starts with a quick, no obligation quote. As soon as we’ve received your online application, we’ll aim to find you the best deal from our panel of lenders. If we’re able to find you an approval in principle, your account manager will give you a call to discuss the next steps. They’ll guide you through the process, take care of all the admin, and even liaise with the dealer on your behalf.
You can choose a car from any verified dealer or check out our car search – home to over 95,000 used vehicles. We’ll then carry out all the checks, chase the lender, and make sure the dealership is kept in the loop so you can just sign on the dotted line and drive away.
There’s no credit score that will guarantee you can get car finance. But that doesn’t mean you should give up on finding finance if your score could do with some work.
In fact, at Car Finance 247, we’ll try and find you the best deal from our panel of lenders, whether you have excellent, good, fair, or bad credit. We might even be able to help if you’ve had a CCJ, defaults, an IVA or been refused car finance elsewhere. Credit is subject to status.
