Help & Advice

Tips for getting accepted for car finance

Hello, I would like to apply but before I do I was wondering what is the application criteria for a car loan?

I have a very poor credit score even though I've never had a bank loan, an overdraft or anything but thanks to bank charges on my bank account 6 years ago it's left me with poor credit score. I would love to know some tips to do before applying and how many wage slips do you need as proof of income. Thanks a lot :)

Carly


Answer

Hi Carly, a great question that i'd be glad to answer.

Firstly, we'd need 3 months wage slips to get you accepted for a car loan. Moving on - some tips to improve your credit score and give you a better chance of obtaining car finance are as follows.

1) Make sure you're on the electoral roll at your current address and that your current credit is registered in this address.

2) apply for a small limit credit card with your bank and setup a direct debit to cover the minimum monthly payments.

3) Get a contract mobile phone and don't miss any payments - again direct debit is the best way to go.

4) Have a small deposit ready as this can strengthen your application chances.

5) Make sure you have a full UK licence if you haven't already.

6) Don't apply to multiple companies for a loan as the more searches you have against your name the lower your score will go.

I hope this helps and i look forward to receiving your application. Please apply when you're ready to do so and once approved we provide a no obligation quote and you can buy a car from any dealer in the UK. Kind Regards, Rachel

Answer correct as of September 2016

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Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

CarFinance 247 is a broker and not a lender

More related questions

Hi Rachel, I only have one wage slip. Do i need to get more?

Answer

Hi Rachel, apologies for the delayed response. To be honest it all depends upon who you get approved with.

If you have a good credit history and you get approved with one of our prime lenders you may not have to prove your income however, if you have a fair/poor credit history and you get approved we'll need 3 months payslips or 3 months bank statements showing your income. Kind Regards, Rachel

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Hi, I'm 18 wanting a car on finance. I have a £2500 deposit and work full time, what's the chances of getting finance and how could I increase my chances? Many thanks.

Answer

Hi Jacques, thank you for your question.

You have a deposit, and regular income which will help us to find you an approval. Are you on the electoral roll? Do you have any active credit in you own name such as a mobile phone contract? These factors would help.

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

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Rachel Wilson, Underwriting manager

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Rachel Wilson, Underwriting Manager

Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

We compare products from 18 of the UK's top lenders to get you the best deal.

Hitatchi

Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

CarFinance 247 is a broker and not a lender