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
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 132 People

Get my quoteNo impact on your credit score
Rates from 7.9% APR. Representative APR 19.9%
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Rates from 7.9%: 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 19.9%, an annual interest rate of 19.9% (Fixed) and a deposit of £0.00, the amount payable would be £166.07 per month, with a total cost of credit of £3,464.37 and a total amount payable of £9,964.37.

We look to find the best rate from our panel of lenders and offer you the best deal that you're eligible for. We don't charge a fee for our service, but we do earn a commission. This does not influence the interest rate you're offered in any way.

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 19.9%, an annual interest rate of 19.9% (Fixed) and a deposit of £0.00, the amount payable would be £166.07 per month, with a total cost of credit of £3,464.37 and a total amount payable of £9,964.37. 

We look to find the best rate from our panel of lenders and will offer you the best deal that you’re eligible for. We don’t charge a fee for our service, but we do earn a commission. This does not influence the interest rate you’re offered in any way.


Bad credit (refused) related questions

Hi, I am currently due to finance a used Mercedes vehicle at Mercedes dealership, i have part exchange and cash deposit (totalling £5000) which brings down the total to finance to around £15,000. My credit history used to always be rated as ''Fair'' until

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September 6, 2011

If you’ve been refused finance by a lender like Mercedes-Benz, we could still help. At CarFinance 247, we work with a panel of lenders, which means we can help find loans for people with a variety of different circumstances. We could even help you find finance if you’ve had a CCJ, default or IVA in the past. With us, you can secure your loan first and head to the dealership to choose a new car with confidence.

There could be many reasons why a lender like Mercedes-Benz wasn’t able to help this time; you might need to improve your credit score, have chosen a car that falls outside the lender’s criteria, or made a mistake on your application.

A bad credit score can limit your car loan options. But the good news is that your score can change, and you can take steps to boost it over time.

Ready to reapply? If you’ve just been refused finance, try not to make a new application straightaway. Too many hard searches on your credit file in a short time could make it more difficult for you to find finance in the future. Getting a quote with CarFinance 247 won’t impact your credit score. We’ll run a soft credit check to see if we can find you an approval in principle from one of our lenders and will only carry out a hard search if you decide to proceed.

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Hi, I've recently purchased (drove off the fore court yesterday) a new car. For no reason other than my own guilt at throwing £270 a month at a car, I'm looking at my options around returning the vehicle. I don't want to cancel the finance agreement if it


September 6, 2011

Yes, if you change your mind and no longer want to continue with your car finance agreement, you have 14 days to reject it. This time is also known as the cooling off period. Your 14 days start on either the day that you sign your agreement or the day that you received a signed copy it, whichever happened later.

And it’s not just car loans, a 14-day cooling off period applies to all regulated finance agreements.

If you no longer want to proceed with your agreement, the first step is to contact the lender as soon as possible They can then ask the car dealership to reverse the deal and return the funds to them.

It’s important to remember that ending your finance agreement doesn’t automatically mean you’ve also pulled out of your contract to buy the car. In that case, you’ll need to find another source of funds to purchase the vehicle.

If your circumstances have changed but you’ve already had your loan for longer than 14 days, then you could still have options. With a refinance loan, you might be able to lower your monthly repayments and extend your loan term. This type of car loan allows you to settle your existing finance and take out a new deal.

Found an issue with your car? We work with trusted community-rated dealerships and issues with vehicles are rare but, unfortunately, used cars can sometimes go wrong. If the worst does happen, contact the dealership straightaway. It’s also a good idea to put your complaint in writing so that you have a record of all correspondence. You can find out more about your right to repair or replacement in our guide.

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Morning, please can you advise the minimum credit score which Volkswagen Finance accept? I have had 2 previous finance agreements with VW with no late payments (£15k finance on last) but have been refused for a 3rd.

Asked by Dean
September 6, 2011

If you’ve been refused finance by Volkswagen, that doesn’t mean you won’t be able to find car finance elsewhere. At CarFinance 247, we work with a panel of lenders, which means we can look to find loans for people with a range of circumstances. That includes people who are claiming benefits, are self-employed, and been refused elsewhere.

There are a few different reasons why your finance application might have been refused by Volkswagen car finance including your credit history, the car you want to buy, or a mistake you made on your application form.

If you’ve missed payments in the past or not taken out finance before, you might have a bad credit score, and this can restrict your loan options. The good news is that your score can change over time and you can take steps to improve it.

When you apply with CarFinance 247, you can get a no obligation quote with no impact on your credit score.

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Hi, I am looking into getting a finance on a used car, nothing to pricey. I have however, had issues with my credit in the past and have a couple of defaults that have been hanging about for a few years now. However, for the past few years e


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CarFinance 247 could still help you find finance, even if you’ve been declined by a lender like Arnold Clark. We work with a panel of lenders, which means we can look to find loans for people with a variety of circumstances, including those who have been refused elsewhere. That way, you can get your finance sorted first and choose a car with confidence. We might even be able to help if you’ve had a CCJ in the past or are receiving benefits.

You might have been declined by Arnold Clark because you have a bad credit score, have picked a car that falls outside their criteria, or made a mistake on your application.

Having a bad credit rating can restrict your loan options but you can take steps to improve your score over time.

When you apply with us, you’ll receive a no obligation quote with no impact on your credit score.

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I currently have a car loan with Black Horse which was taken out before I set up the DMP 2 years ago. The car now has 86000 miles and will need replacing soon. Black Horse has refused a loan even though the £530 monthly payment has been paid without any i


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If you’ve been refused a PCP loan by a lender like Black Horse, we could still help! At CarFinance 247, we work with a panel of lenders, which means we can help find finance for people with a variety of circumstances, including those who have been refused elsewhere. We could even help if you’ve had a CCJ, default or IVA in the past. With us, you can get your finance sorted first before heading to a dealership to choose a car with confidence.

There are many reasons why you might have been refused PCP car finance by Black Horse; you might need to work on your credit score, have chosen a vehicle that falls outside the lender’s criteria, or made a mistake on your application.

Having a poor credit score can limit your PCP car loan options, but your score isn’t fixed, and you can take steps to improve it over time.

Ready to reapply? When you get a quote from CarFinance 247, it won’t impact your credit score and you’re under no obligation to proceed. We’ll only carry out a hard search if you choose to move forward with a loan.

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Hi Rachel, I've tried to apply for car finance today through a high street dealer (the company they used were called Motonovo?) but I was declined. I have a credit score of 478 (checked through Equifax) and I earn £36000 a year in a very stable job. My ba

Asked by James
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If you’ve been refused finance by a lender like MotoNovo that doesn’t mean you have to give up on getting car finance. At CarFinance 247, we work with a panel of lenders, which means we can help find car loans for people with a variety of different circumstances. We could even help if you’ve had a CCJ, default or IVA in the past. With us, you can secure your finance first so you can head to a dealership and choose your new car with confidence.

After being refused finance, you probably want to know why. There are many reasons why a lender like MotoNovo couldn’t help this time: you might need to work on your credit score, have chosen a car that falls outside the lender’s criteria, or made a mistake on your application.

Having a bad credit score can limit your car loan options. But the good news is that they aren’t fixed, and you can take steps to improve your credit score over time.

Ready to reapply? If you can, wait before making a new application that could leave a hard credit search on your file. Too many hard searches in a short time could make it more difficult for you to find finance in the future. Getting a quote with CarFinance 247 won’t impact your credit score. We’ll run a soft credit check to see if we can find you an approval in principle and will only carry out a hard search if you decide to proceed.

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Hi, I have a really low credit rating of 350 because when I moved house years ago the new tenants racked bills up in my name. I've reported this and am trying to get it sorted.

I have a really good income of 100k+ a year, I am a preferred c


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The good news is that we work with a panel of lenders and some of those can help people get car finance with bad credit.

However, we can’t guarantee that we’ll be able to help as everyone’s circumstances are different and we’d need to look at your individual details to find out if we can match you to one of our lenders.

As you’re looking for a Range Rover on car finance with bad credit, if you’re approved in principle, your account manager will be able to talk you through your options,  the amount that you could borrow and the deposit you may need in order to buy a car that’s right for you.

Get a quote to find out more. Rates from 19.1% APR. Representative APR 31.2%.

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Hello, i have recently got credit through 1st response to obtain a motorbike. I am having no problems with my payments with them but i still have a bad credit rating. Would it be possible to still gain car finance?

Asked by David Smith
September 6, 2011

Hi David, thank you for your question. If i’m honest it would be highly unlikely that First Response would give you another loan on top of the motorbike finance agreement.

However, there is a chance that one of our other lenders may be able to help. Please make an application and once approved you can choose a car from any reputable dealer and we also provide a no obligation quote. There’s no guarantee of an approval at this stage but we’ll certainly try our best to help. Kind Regards, Rachel

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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.


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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%.

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I need car finance but i have bad credit due to submitting quite a few finance applications and previous late payments. I have paid up all my debts and have been employed with the same employer for 3 years. I am however still being declined for finance du


September 6, 2011

Unfortunately, we can’t guarantee that we can definitely help you get car finance but we do work with a panel of lenders and some of them are able to help customers with bad credit get car finance. Everyone’s circumstances are different, so we’d need to take a look at your individual details to see if we can match you to one of our lenders. Get a quote to find out more. Representative APR 31.2% with bad credit.

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