I have bad credit and am looking to borrow £5000 over 36 months for a car loan

Hi Rachel, I had a trust deed which was discharged in 2006. My current credit score is 481, I am a homeowner, in full time employment and have been on the voters roll for 7 years at my current address. I am thinking of purchasing a for approx £5000 (over 36 months) and would put down £1000 as a deposit (£4,000 to finance). Am i wasting my time in applying. If not what kind of rate would I be looking at?

Asked by Bobby
September 6, 2011

Hi Bobby, thanks for using the Q&A.

Do not worry in the slightest - i’m extremely confident we can help get you approved for car finance even though you’ve had a bad credit history. We have many specialist lenders who help customers in your position but the rates will be between 14% and 20% as you are seen as a bigger risk than people with perfect credit records.

The fact that you have a 20% deposit is also a huge boost as we have one lender in particular that pretty much takes anyone on if they are a homeowner and have a 20% deposit. So you wouldn’t be wasting your time at all in applying.

Please make an application and hopefully we’ll be able to get you back on track and into a Lexus in no time. Once approved we provide a no obligation quote and you can buy a car from any dealer. Kind Regards, Rachel

My monthly budget is

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Rates from 8.9% APR. Representative APR 19.9%

My monthly budget is

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Rates from 8.9%: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £10,000 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed) and a deposit of £0.00, the amount payable would be £255.50 per month, with a total cost of credit of £5,329.80 and a total amount payable of £15,030.

We look to find the best rate from our panel of lenders and offer you the best deal that you're eligible for. We earn a commission for providing our services, but this does not influence the interest rate you’re offered in any way.

Amount to borrow

To pay over

5 years

Assuming your credit profile is:

Total cost of credit	£ 2000
Total repayment	£ 2000

48 monthly
payments of

£ 245 98

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Rates from 9.9%: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £25,000 over 48 months, £3,750.00 deposit, on PCP, with annual mileage of 8,000pa, and a representative APR of 11.9%, an annual interest rate of 11.9% (Fixed), the amount payable would be £394.51 per month, an optional final payment of £7,194.33, with a total cost of credit of £9,912.36 and a total amount payable of £28,444.33.

We look to find the best product from our panel of lenders and will offer you the best deal that you’re eligible for. We earn a commission for providing our services, but this does not influence the interest rate you’re offered in any way.

Bad credit (refused) related questions

Hi Rachel, I was just wondering the answer to this question. I have got a car on finance with help from a close family friend. She had to take the car finance out in her name but i pay for the car. I've worked all my life well since i was 17. I had a bad

Asked by George Hamill
September 6, 2011

Hi George, from my experience the finance company won't transfer the finance into your name even though you're paying for the car. The agreement is in your family friends name and i doubt they'd want to change it. The best thing may be to sell the car and settle the finance and then apply for finance yourself on a new car when you're ready. As long as you can prove your income, are on the electoral roll and have some current clean credit profiles we should be able to get you approved for car finance. Have a good evening. Kind Regards, Rachel

Hello, I have bad credit however, this is through no fault of my own. It's because off an ex girlfriend who has been making late payments on a mortgage we had together. I have had nothing to do with the house for over 5 years now and I earn a good wage. I

Asked by Jason
September 6, 2011

Hi Jason, as long as you have no other missed payments or defaults we should be able to get you approved for car finance through one of our niche lenders. What other form of active credit do you have and are the accounts up to date and paid on time? Also do you have a deposit or part exchange? It would help if you were on the electoral roll so please get yourself on the register before you apply for finance. Kind Regards, Rachel

Hi, i have just started work about a month ago. I have bad credit would i be able to get car finance?

Asked by David
September 6, 2011

Hi David, Yes - as you're now working this is great news and i'd like to think we'd be able to help get you approved. It all depends upon how bad your credit record is and whether any of our lenders will take you on. Being employed is a massive help though. Please apply and we'll see what we can do. Regards, Rachel

Hi , i've been looking for a car on finance for the last 2 weeks. I have been to two local car companies and was refused finance on a £5000 car with a £1000 deposit. I don't know why i have been refused. I am only 21 but i do work full time. Is there any

Asked by Donna
September 6, 2011

Hi Donna, there could be numerous reasons why you have been refused such as your age, weak or no credit history and electoral roll presence to name the most common. You seem to have a big deposit so there shouldn't be an issue on that front and you say you work full time so affordability shouldn't be a problem either. Can you tell me where you have applied (which finance companies) and it'll give me an indication on whether we can help you out? Are you on the electoral roll at your current address and do you have any current active credit profiles such as loans, credit cards or store cards? If so, 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

Hi, I have never got finance for a car before but now I'm looking at applying. I've found a car for around £11,000, and I've got my old car and some cash to put down as a deposit (in total around £1500 including the car). I have had my own business now fo

Asked by Stacie Greenbank
September 6, 2011

Hi Stacie, thanks for your question! It's great that you've saved a deposit, and the fact that you have a steady regular income should help your chance of approval. As you are self employed, you will most likely be asked to prove your income in the form of a bank statement. By average, do you mean you have a 'fair' credit score? Is so then it's not too bad - and we will try our best to find you an advisor. Please make an application when you're ready and if approved we provide a no obligation quote and you can buy a car from any dealer. Kind Regards, Rachel

Hi,Last Wednesday I was approved for Car Finance, I took a Test drive and left deposit to secure car, waiting on the finance company to pay out. In the meantime, I actually Sold my own car. Next visit to the dealer, I was HEAVILY persudaded to try finance

Asked by Aaron
September 6, 2011

Hi Aaron. Unfortunately when you send a second application to a finance company they will re-search you which can actually lower your credit score thus potentially resulting in a decline. However we do deal with most lenders on the market and dependant upon your credit profile we should be able to help you. Please make an application so we can see how we can help. Thanks, Rachel

I got knocked back on finance for a car because of my age. If I were to get a guarantor do you think I would get a car on finance?

I've put down my deposit and everything for the car already?

Asked by Kiera
September 6, 2011

Hi Kiera, thank you for your question.

Adding a guarantor to your application can certainly improve your chances of being approved. It's certainly worth a go! I take it you have a UK licence, a UK bank account and are employed?

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

My wife and i are currently looking for a bigger family car. We both have bad credit and do not work.

We are on benefits. Could we get a loan from you?

Asked by Andy
September 6, 2011

Hi Andy, thank you for your question.

The good news is that we do have a handful of lenders that will consider helping people who have bad credit and are on benefits get car finance.

As long as you have a UK licence and can prove your benefit income with bank statements we could potentially help. If you’re on the electoral roll (not mandatory) this would help too.

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

Hi, I am in full time employment but, i am not on the electoral roll and i have bad credit. Is there anyway you could help me? Regards, Shane.

September 6, 2011

The good news is that we work with a panel of lenders and some of those lenders can help people who are on benefits and have bad credit get car finance. This includes people claiming Disability Living Allowance, subject to approval. However, we can’t guarantee you’ll get a car loan as everyone’s circumstances are different. Get a quote to find out more. Bad Credit Representative APR 31.2%.

Hi, i am self employed and looking to finance a range rover sport for me as well as my business up to £15000. I have no CCJ's and I am on top of all my payments but do have bad credit. Will i get finance?

Asked by Graham Chapman
September 6, 2011

Hi Graham, we'd love to be able to help. Just a few questions - do you have a deposit as you'll need at least 15% - 20%? Can you prove your income with payslips / bank statements? Are you on the electoral roll at your current address? If you can get back to me with positive answers then we should be able to help you get into a Range Rover Sport. Rachel

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CarFinance 247 is a trading name of CarFinance 247 Limited. Registered office: Universal Square, Devonshire Street North, Manchester, M12 6JH. Registered in England. (Registration Number 06035525).

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