Bad Credit Car Finance from ChooseMyCar

Bad Credit Car Finance

  • No Deposit? No problem

  • Buy from any reputable dealer

Get a Quote Does Not Affect Your Credit Score Representative 21.4% APR
4.8 out of 5

No Obligation
No Fees
Bad Credit? No Problem!

Bad Credit Car Finance from ChooseMyCar

Get a Quote Does Not Affect Your Credit Score

Representative 21.4% APR

4.8 out of 5

No Obligation
No Fees
Bad Credit? No Problem!

£8,000
4 Years

48 monthly repayments

£356.94

Best available rate 6.9%

Total cost of credit £1,069.12

Total repayment £8,569.12

48 monthly repayments

£356.94

Best available rate 6.9%

Total cost of credit £1,069.12

Total repayment £8,569.12

Representative example:

Borrowing £6,500 over 48 months with a representative APR of 21.4%, an annual interest rate of 21.4% (Fixed) and a deposit of £0.00, the amount payable would be £196.24 per month, with a total cost of credit of £2,919.52 and a total amount payable of £9,419.52

  • No obligations
  • No fees
  • Get dedicated customer support
  • Get finance to match your budget
  • FCA authorised and regulated
  • Buy from any reputable dealer
  • Over 30 finance options

Helping you to get car finance if you've got poor credit...

Bad credit doesn’t have to mean you can’t buy a car. As car finance specialists, we know how difficult it can be to secure the right deal. That’s why we always go the extra mile to find the best deal for your individual circumstances.

Here are just some of the ways we can help:

CCJs, defaults and arrears


Our network of trusted lenders can help you find finance, even if you have CCJs, arrears, IVAs or a debt management plan. It may be that you're self-employed. Whatever your situation, we could help you to secure car finance.

Applying won’t affect your credit score


To work out the affordability of any loan, simply use our quick finance calculator to see what you could borrow. Or, apply now to view your options. All without affecting your credit score.

Approved, reputable dealerships


All our trusted dealerships are handpicked by our experts. That means quality cars, from quality dealerships. So, you can feel safe in the knowledge that your experience will be smooth from beginning to end.

Representative 21.4% APR


We’re always transparent with our finance deals. Plus, we always find you the best rate. For starters, our representative APR is just 21.4%. Because putting you first is what we do best.

Let's get you started

Applying with us only takes a couple of minutes and won't affect your credit score

Can you get car finance with a bad credit score?

We understand that having a bad credit score can make buying a car difficult, but that doesn't mean you don't need one to get around, or even get to work. Sometimes it feels like the deals you want can disappear after you've gone through a credit check. This comes down to your financial history, where lenders think you may not be able to meet the payments over the course of the contract.

We know how exasperating that can be, and at ChooseMyCar we understand that just because you have a low credit score, it doesn't necessarily mean you can’t afford to make the payments. This can affect people who are self employed or work part-time and can often affect young drivers who haven’t had a chance to build their credit score. People have bad credit scores for all kinds of reasons, and some lenders will set interest rates much higher, or take away options like no deposit.

So what are my car finance options with bad credit?

We’re here to help you secure the best bad credit car finance deal possible. We find that the best car finance deals for bad credit are often to be found with Personal Loans or potentially with Personal Contract Purchase (PCP) or Hire Purchase agreements. While rates will often be higher than representative models, there are still good deals to be found.

Personal Loans and Bad Credit

Personal Loans can be an excellent option for people with bad credit. We’ve gone into greater detail on Personal Loans elsewhere, but essentially you borrow from a lender such as a bank or building society. This allows you to walk into a dealership and act as a cash buyer.

Bad Credit Guarantor Loans

With a poor credit history, a guarantor loan may be an excellent option for you when it comes to car finance with bad credit. This will allow you to use someone else as a guarantor, like a friend or family member. This can help you avoid higher interest rates as it essentially means that if you miss a payment, someone else can step in and pick it up.

What is my credit score?

Your credit score is something used by lenders to determine your eligibility for loans, mortgages, credit cards or other similar services.

This score is affected by a number of different factors including, but not limited to:

  • Your presence on the electoral roll
  • Your available credit, and how much of it you’re using
  • Your current debts
  • Your history of credit payments and repayments
  • When you make credit searches

If you have a good credit score then lenders are much more likely to loan you money with a preferential repayment rate. This doesn’t mean that having a bad credit score can stop you from loaning money, but it can mean that it becomes tricky to do so.

You can check your credit score with companies like Experian and Equifax.

Quick tips on improving your credit score before applying for a car loan

  • Register on the electoral roll
  • Review your credit score regularly
  • Make sure you don’t miss any payments
  • Close any unused credit accounts
  • Pay off your debts

For a more detailed look at improving your credit score, check out our free guide.

CCJs & IVAs and Car Finance

Bad credit isn’t the only debt-related issue that could affect your application for car finance. Both County Court Judgement (CCJ) and Individual Voluntary Agreements (IVA) can affect your chances of applying for car finance.

CCJs and Car Finance

Having a CCJ doesn’t have to hold you back from having car finance. These may be granted against you when you fail to repay any debts owed.

Look at our guide for more information on car finance for people with CCJs.

IVAs and Car Finance

An IVA is an agreement between yourself and creditors. You’ll need a written letter from them before entering into a new car finance deal. 

Frequently Asked Questions

While you won’t need a good credit score to flat out buy a car, it can affect things if you want to get car finance. Overall the better your credit rating the better deal you’ll get on your car finance.

A poorer credit score may mean you are either denied car finance altogether by some lenders or else face higher interest rates or monthly repayments. That shouldn’t put you off though, at ChooseMyCar we are experts in bad credit car finance and can even help people with CCJs or IVAs get car finance. For more information on raising your credit score, check out our guide.

The amount you can afford to spend on a car will vary depending on your situation. The important thing is to make sure you can afford any repayments that your car finance agreement sets out. Missing repayments can cause issues between you and your lender and could end up in court or affecting your credit rating. 

To work out what you can afford, try our car finance calculator.

Your car finance may have been refused for a number of reasons. These are generally one of the following: 

  • Poor credit history or a bad credit score - read our tips on improving your credit score
  • You don’t meet the criteria for qualifying for that lender’s finance
  • Your employment status - some lenders won't approve you if you are unemployed or self employed
  • Type of driving license
  • Age - this could be because you're too old or a young driver. 

For more information on why you may have been declined, please read our guide on being refused car finance.

The length of a car finance agreement will vary for a number of reasons. The overall length of a term is usually measured in 12 month increments. 

These terms usually start with a minimum of 24 months (2 years) upt to a maximum of 96 months (8 years). Generally terms for used cars are shorter than those for long cars. 

While the monthly repayments will likely be lower on a longer term plan, it’s worth working out how much interest you’ll pay if you opt for something over a longer period of time.

It is possible to get car finance with bad credit. Many lenders provide loans and finance options specifically for people with bad credit.

Personal loans can be a great car finance option if you have bad credit. And a guarantor loan may help you avoid higher interest rates; this is where a friend or family member co-signs the loan, agreeing to meet payments if you're unable to.

With pre-approval on a personal loan, you can walk into the dealership like a cash buyer. You can be in a better position to negotiate on price. And you can avoid the stress of the finance office.

Your credit file is checked if you apply for car finance. And you'll usually have to provide proof of ID, address, and income. The specific documents you'll need ultimately depend on the finance provider you go with.

Providers will check your credit score when you apply - initially via a soft search. They'll perform a hard credit check if you choose to enter into a contract with them. Most lenders will need to see your driving licence - full or provisional. You may also be asked to provide:

  • Your passport - for proof of ID
  • Utility bills or council tax letters - for proof of address. These usually need to be dated within the last three months.
  • Payslips - for proof of income and to make sure you can afford the payments. Some providers may ask to see a few months' worth.

While it’s not ideal, there are circumstances that may occur that stop you from making a payment.

If you are unsure about your ability to make an upcoming payment we would recommend contacting your lender. This way there may be something that can be worked out before the payment is missed.

If you’ve already missed your payment, and can afford to make it, contact your lender as soon as possible to make the payment. You may incur a late fee, but making the payment can stop anything else from having.

If you continue to miss payments there is a chance your car could be repossessed and you will still owe for missed payments. Your credit rating will also be negatively affected.

A guarantor is someone that will meet payments if you miss one. They are usually a parent, but can be anyone not directly linked to you financially, i.e. you can’t have a joint account with this person.

Read our guarantor loan guide.

Having a guarantor can help you to get a loan when you otherwise may not have been able to, i.e. when you are a young driver, self employed or have bad credit.

Lenders may look more kindly on someone in one of these situations if they have a guarantor so they know that there’s less chance of a missed payment.

Read our guarantor loan guide.

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