Help & Advice

My credit history is really bad. Can i get car car loans with a guarantor?

Hello, My credit history is really bad and i have not been able to get any car finance. Can you help if i can get a guarantor? Also can i trade my current car in?

John Ledwidge


Answer

Hi John, thanks for using the CarFinance 247 Q&A.

If you were to add a guarantor onto your application it would certainly strengthen your chances of being approved for a car loan.

Do you have anyone in mind who would be able to help? If you did get a guarantor they would have to be made aware that if you missed your monthly payment then their credit rating would be affected also. When you say your credit is bad can you explain in more detail? How many defaults and arrears do you have and how much do they add up to?

How much were you thinking of financing for a newer car and to answer your other question - Yes, you can use your current car as a deposit towards a newer one. You'd simply part exchange this in at a dealer of your choice and they would inform you of what they'd be prepared to pay for it.

Car Finance 247 have a large panel of lenders that help customers in your situation. I can't guarantee that we can help you but we do help hundrerds of people with bad credit get into a new or used car on a monthly basis. Once accepted we provide a no obligation quote and you can buy a car from any dealer. Please make an application online. 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.

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More related questions

I have very bad credit and need a car loan, but I have a very good guarantor who is willing to help me. Would this help with finance?

Answer

Hi Marcus, a guarantor who has a good credit history would certainly aid your chances of being approved for a car loan - please apply when you feel ready. Rachel

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Hello, My credit history is really bad and i have not been able to get any car finance. Can you help if i can get a guarantor?

If so, does the guarantor need to own a home or just have a good credit history? Also, can i go into a main dealer with the guarantor? Thanks in advance, Steve.

Answer

Hi Steve, thank you for your question and apologies for the delayed response. I hope you had a good Christmas / New Year!

In answer to your question we can help people with very bad credit get car finance but this cannot be guaranteed unfortunately. We will try our best though and we do have access to over 15 specialist lenders that help people in your situation.

A guarantor will certainly help and they don't have to be a homeowner - just have better credit than you do (preferably good). Also, as long as you are employed with a UK licence we do have an opportunity to get you accepted.

If approved we provide a no obligation quote and you can buy a car from any dealer nationwide so please apply with your guarantor when you can. Kind Regards, Rachel

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Hi, I have made an application and been approved but with a higher apr due to poor credit history. I just wondered if I was to add a guarantor with excellent history to my application would this potentially allow a lower apr or would it stay the same? Thanks

Answer

Hi Nicola, thank you for your question.

Unfortunately adding a guarantor to your application won't secure you a lower APR. As the car is for you and you're the main hirer the lender is lending the funds based mainly upon your credit profile. The good news is that you are approved and even though the APR may be higher than what you expected it can help you re-build your credit profile over time. If after 2 years you keep all your repayments up to date we may well be able then to secure you a better deal. 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