Will credit card debt affect getting car finance?

Hi, I am in full time employment earning £20K PA, in the past i have been bad with credit but now have just over £2k in credit on 2 credit cards (both of which are active and being are paid on regular basis) My issue is my credit is still classed as "very poor" to "poor" due to 2 old defaults. I do have a guarantor with good credit but he is retired and over the age of 70. So my question is if i was to apply what are the chances of me being approved? I have applied elsewhere recently but got turned down and don't want to run the risk of this happening again as i am really trying to improve my credit rating.
Asked by Paul
October 15, 2012
Hi Paul, it looks like you're getting back on the right track. Where have you recently applied and been declined? I'm confident we could help as you have a good income and a guarantor (who you can use) and also a few active current profiles which you say are up to date payments wise :-)
5 years
Total cost of credit £ 2000
Total repayment £ 2000
48 monthly
payments of
£ 245 98

Rates from 6.9%: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £6,500 over 5 years with a representative APR of 24.9%, an annual interest rate of 24.9% (Fixed) and a deposit of £0.00, the amount payable would be £181.16 per month, with a total cost of credit of £4,369.52 and a total amount payable of £10,862.52.


Credit scores related questions

I have noticed a great discrepency between the two companies. Experian has my bank details, past credit and my electoral roll details but despite sending letters and a copy of my experian statutory report Equifax have only my Virgin media account on my pr


October 15, 2012

In the UK, there are three main credit reference agencies – Equifax, Experian, and TransUnion. Each of these agencies has a different scoring system and uses different information to determine your credit score. It’s not unusual for your score to be different with each of these agencies.

At CarFinance 247, we work with a panel of lenders who use different credit reference agencies to determine whether they can approve you in principle. As you can’t be certain which of the three agencies your lender uses, it’s good practice to check your credit score at all three. This can be done for free by heading to Credit Karma (which uses TransUnion data), ClearScore (which uses Equifax) or Credit Club from MoneySavingExpert (using Experian data).

Find out more about credit reference agencies here

Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 7 People

Hi, I have a credit rating of 605 and have one defaulted account of £400 from last year which was settled last year. I have a deposit of £1000, I also make around £1600 - £2000 a month, and was looking at a car around £5000. Do you think I'll have a chanc

Asked by Danielle
October 15, 2012

Hi Danielle, as you only have one small default that is now settled and you have a good income and large deposit i see no reason why we won't be able to get you approved. The fact that you're on the electoral roll and have some other forms of clean credit is great to see too. Please apply when you're ready. Kind Regards, Rachel

Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 6 People

Hi, I have an experian credit score of 649 and on the up as my finances are getting a lot better.

I earn £28k per annum and am looking for approx £5k. Would you be able to help and what sort of interest rate would I be looking at? Thanks fo

Asked by James shaffer
October 15, 2012

Hi James, thank you for your question.

As you have a fair score and you say you're financial situation is improving i'm confident we can help. You also have a good income and are after a sensible amount. The rate you receive will purely depend upon the lender we can get you approved with.

Please make an application and once approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 7 People

Hi, I have an Experian credit score of 868 and need about £9000 to buy a replacement car. I'm on about £1300 per month, live with my parents and am on the electoral role.

I have one defaulted account for about £400 from 3 years ago, I don't

Asked by Jack Lloyd
October 15, 2012

Hi Jack, thank you for your question.

As you only have a few blips on your credit profile and an old default for a small amount i doubt this will prevent us from securing you car finance.

The only stumbling block may be the amount you need. On £1300 monthly income we may only be able to get you circa £7000 but this all depends upon which lender we can get you accepted with.

Please make an application and once approved you can choose a car from any dealer and we also provide a no obligation quote. Kind Regards, Rachel

Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 10 People

Hi, I have an experian credit score of 710, I have 2 ccjs which were both paid before it got to court, one five years ago and one three years ago, I have three defaults also from five years ago, I have sent settlement letters to registry trust to try and

Asked by John
October 15, 2012

Hi John, Your credit score is quite high in light of your ccjs/defaults. The amount you are looking for is definitely achievable given your circumstances. From what you have told me I am confident we will be able to help you as you are clearly showing intent to improve your credit profile. Please make an application so we can see what would be the best option for you. Thanks, Rachel

Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 6 People

Hi, i have bad credit from many years ago that i fear is still haunting me on my file. I am in full time employment and have been working for same company for 12 years. My salary is ok. I have lived at same address for over 32 yrs. Looking for approx £750


October 15, 2012

We work with a panel of different lenders and are able to help customers with different credit scores - excellent, good, fair and bad - get car finance. This includes people with CCJs, defaults and IVAs, subject to approval. We can’t guarantee you’ll be approved for finance though, as everyone’s circumstances are different and we’d need to look at your individual details to see if we can match you to one of our lenders. Make an application to find out more. Rates from 6.9% APR. Representative APR 24.9%.  

Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 8 People

Hi, I was made bankrupt 3 years ago due to debts incurred when my father died and we had to cover funeral costs, I believe I am now discharged and my experian rating is 977, I have no loans or credit right now. I don't want to apply for credit and get tur

Asked by Dave K
October 15, 2012

Hi Dave, thank you for your detailed question. Your credit score does seem good but as you have no active credit (and past bad credit) we may struggle. I'm confident we can get an approval but i can't guarantee anything at this stage. Are you on the electoral roll? If so, this further increases our chances. The fact that you have a part ex and cash deposit certainly increases your chances of getting the amount you need. It's your decision Dave but i am quietly confident. That's all i can say now. Rachel
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 10 People

Hi. I have a current credit score of 359 which is very poor through no fault of my own. I've basically had my identity stolen & used to take out serveral payday loans. Wonga & quick quid. I'm in the process of dealing with it however I'm in desperate need

Asked by Nikita
October 15, 2012

Hi Nikita, I am sorry to hear of your situation, however there may be something we can do to help. However you would need to make an application so we can assess your credit profile before we can be sure. Please provide me with your reference number when you have filled one out and I will be able to advise. Thanks Rachel
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 9 People

I have a bad credit rating of 374 (trying to get incorrect info removed). I earn £30,000 and am on the electoral roll but if I make an application for car finance through you how many credit searches will appear on my credit file and will I have endless p

Asked by Jay Thomson
October 15, 2012

Hi Jay, to answer your question we conduct a minimum of 1 and a maximum of 3 credit searches when trying to obtain car finance for you. The first credit search is conducted by ourselves to ascertain whether we can get you approved or not. If we think we can we'll then propose you to 2 of our poor credit lenders to get a decision. As you have a good income and are on the electoral roll this will go in your favour. You will not be called by any other debt management companies either. You will only be called / receive a letter f you are approved. Rachel
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 7 People

I have a bad credit score and am not on the electoral roll. But would my girlfriend be able to get te car in her name? She's on the electoral roll and has a part time job. We would have a deposit of £2400 and need another £2600. She doesn't have a driving

Asked by Michael
October 15, 2012

Hi Michael, your girlfriend can't apply as she doesn't have a licence. However, as you have a large deposit i'm relatively confident we can get you approved for finance even though you have a bad credit history. Please apply and we'll go from there. Kind Regards, Rachel

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CarFinance 247 is a trading name of CarFinance 247 Limited, a credit broker and insurance intermediary, and 247 Money Group Limited (247 Money), a lender. Both companies are part of the 247 group of companies.

CarFinance 247 is authorised and regulated by the Financial Conduct Authority under reference number: 653019. Registered office: Universal Square, Devonshire Street North, Manchester, M12 6JH. Registered in England. Company registration no. 06035525. Data Protection Registration Number Z1897658.

247 Money is authorised and regulated by the Financial Conduct Authority. Registered office: Universal Square, Devonshire Street North, Manchester, M12 6JH. Registered in England. Company registration no. 10989530. Data Protection Registration Number ZA456831.

All finance is subject to status and income. Written quotations on request. CarFinance 247 can introduce you to a limited number of finance providers, including 247Money, based upon your credit rating and will receive commission for such introductions.

† We do not charge a fee for arranging the finance, however some of our lenders may charge a fee. Your account manager can provide more information on this

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