Need a car but worried about your credit score? We specialise in supporting people with bad credit and may be able to match you with a trusted lender.
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.
If you have a low credit score and want car finance, it can feel frustrating. You might feel uncertain, especially if you've been turned down before. Credit checks and different lender criteria can also make the whole process seem confusing.
But we understand that having a car is often essential for getting around day to day. At Car Finance 247, we work with people in a wide range of credit situations and we focus on being clear and straightforward. Our trusted panel of lenders look at each application individually, and consider more than just your credit score.
If you want to explore your options, you can get a personalised quote with no obligation.
A credit score is used by credit reference agencies to help lenders assess credit applications. Generally, higher scores could improve your chances of approval. Bad credit may suggest past financial issues, which can arise for many different reasons and at different times in life. Things like missed payments or periods of financial difficulty can affect your credit score. But, credit scores are not fixed and can change over time.
It can be confusing because there’s no single definition of a “bad” credit score in the UK. Plus, all credit reference agencies use their own scale, so your score may look slightly different depending on where you check it.
Below are the bandings that Experian, Equifax, and TransUnion currently use to define a poor/very poor credit score. If yours falls within these ranges, there may still be steps you can take to gradually improve your credit score..
| Bandings | |
|---|---|
| Experian | 0-720 |
| Equifax | 0-438 |
| TransUnion | 0-566 |
Having a lower credit score doesn’t automatically mean you will be unable to access car finance, as lenders take a range of factors into account beyond the score itself.
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.
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.
Learn more about Hire Purchase
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.
Learn more about Personal Contract Purchase
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 bear in mind that spreading your outstanding loan over a longer term can reduce the monthly payment but may increase the total amount of interest payable.
Please note: All finance offers are subject to status and affordability assessments. Availability depends on your circumstances and lender criteria.
Learn more about Refinancing
| Feature | Hire Purchase (HP) | Personal Contract Purchase (PCP) |
|---|---|---|
| Automatically own the car at the end |  |
 |
| Optional final balloon payment | |
|
| Requires initial deposit | Optional | Optional |
“Car finance could be a real lifeline for people with bad credit, offering a manageable way to own a car while rebuilding your credit score through consistent, on-time payments.”
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, 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.
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