Bad Credit Car Finance

Yes. While your Credit Score is important for Lenders when they decide on your eligibility, it doesn’t dictate it. While a good Credit Score could get you a better deal, specialist Lenders and Finance Arrangements (like Guarantor Loans or Joint Purchase) can get you behind the wheel even if you have very poor credit. You just need to talk to the right Lender. Find out how low scores affect car finance?

It’s possible, and easier than many people think- especially if you work with a broker that specialises in bad credit car finance.

While having a poor credit score can limit your options, many UK lenders now offer finance specifically designed for people with a history of missed payments, defaults, or low scores. They’ll assess more than just your credit file, including income, outgoings, and overall affordability.

At ChooseMyCar, we work with a wide panel of trusted bad credit lenders across the UK, making it easier to find a deal that suits your circumstances. We guide you through the process, help with paperwork, and offer no-obligation quotes so you can see your options clearly before committing.

You can get bad credit car finance through specialist brokers, lenders, or car dealerships that work with subprime finance providers.

At ChooseMyCar, we partner with a network of FCA-approved lenders who specialise in bad credit car finance. Whether you’ve had CCJs, defaults, or have never borrowed before, we can help match you with a finance option that works for your budget and lifestyle: often with no deposit required.

Rather than applying to multiple lenders yourself (which can hurt your credit score), our team does the hard work for you. We’ll search for a suitable deal and explain everything clearly, so you know what to expect from the start.

Applying for bad credit car finance can have a small impact on your credit score, but it doesn’t have to be negative if managed properly.

When you apply, lenders usually perform a credit check, which can be either a ‘soft’ or ‘hard’ search. A soft search doesn’t affect your credit score and can be used to get an initial idea of your eligibility. A hard search is recorded on your credit file and might cause a slight, temporary dip in your score.

If you make your repayments on time and stick to the finance agreement, this positive payment history can actually help improve your credit rating over time. On the other hand, missed or late payments can damage your credit score further.

At ChooseMyCar, we use soft searches initially to minimise impact and only proceed with hard searches once you’re confident about moving forward. We also offer advice on managing your credit responsibly to support your long-term financial health.

Yes, you can get car finance with a 500 credit score. Many lenders offer finance options for people with low credit scores by looking at your full financial situation, not just the number itself.

Although your credit score might influence the interest rate offered, there are specialist lenders who work with customers in this range to help you get a manageable deal. It’s important to ensure repayments fit comfortably within your budget. You can learn more about Hire Purchase (HP) financing, which is popular for bad credit, on our HP page. For general credit advice, follow our guide to improving your credit score or MoneyHelper offers excellent guidance on improving your credit health.

Yes, it’s still possible to get car finance with a credit score of 200. Some lenders specialise in working with people who have poor or very limited credit histories and will consider factors beyond just your score: like your income, regular expenses, and employment status.

Although a 200 score is on the lower end of the scale, it doesn’t automatically mean rejection. Many lenders focus on affordability; if you can show that you can manage monthly repayments comfortably, you could still be approved. Working with a broker that partners with a broad panel of trusted bad credit lenders (like we do at ChooseMyCar) can help connect you with the right finance option for your circumstances.

You may have fewer choices and need to meet additional criteria, but support is available. It’s also a good idea to check your credit report for any mistakes or areas you can improve. You can do this for free with services like Experian, Equifax, or TransUnion.

Yes, you can finance a brand new car with bad credit. The process is very similar to financing a used car, but keep in mind that new cars usually come with higher purchase prices and monthly repayments- so used car financing may be a better option.

If you can demonstrate that you can afford the deposit and monthly payments, lenders will consider your application. You might want to explore financing options such as Hire Purchase (HP) and Personal Contract Purchase (PCP). For insight into how much you could afford to pay, check out our helpful car finance calculator.

To apply for bad credit car finance you’ll need identification, proof of income, and in some cases, access to your bank data.

Lenders use this information to assess your affordability and verify your identity, which helps them make a responsible lending decision. Having these documents ready can speed up the application and approval process:

• Valid UK driving licence – This can be either a full or provisional licence and is used to confirm your identity and eligibility to drive.
• Proof of income – If your income can’t be verified digitally (e.g. via open banking), most lenders will ask for your last 2 to 3 months of payslips or bank statements. If you’re self-employed, tax returns or SA302 forms from HMRC may be needed.
• Open banking access – Some lenders may request this to better understand your income, spending habits, and financial commitments, especially if there are recent applications for credit or gambling markers on your file. This process is secure and regulated by the Financial Conduct Authority (FCA).
• Proof of address – This essential documents list may help but typically you will need a recent utility bill, council tax letter or bank statement dated within the last three months.
• Credit history overview – While there’s no fixed minimum score, lenders will often review your current credit report and score to help them assess your financial background and risk level. You can check yours for free with Experian, Equifax or TransUnion.

Don’t worry if you’re not sure what’s needed: ChooseMyCar will guide you every step of the way, helping you gather the right information and making the entire process as simple and stress-free as possible.

Many customers are able to find and finance a car within just a few days, even with a poor credit history.

The timeframe depends on factors like your credit profile, the lender you’re matched with, and how quickly you provide the required documents. That said, ChooseMyCar helps make the process quicker by handling most of the paperwork, managing communication with lenders, and guiding you through what’s needed at each step.

Before you even apply, it’s a good idea to start browsing available vehicles. On our site, you can explore a wide range of fantastic options: from nearly-new hatchbacks and reliable used family cars to premium SUVs and luxury saloons. Once you’ve found something that suits your lifestyle and budget, we can match you with a lender who fits your situation.

We’ll keep you informed throughout the process and work to get you behind the wheel as soon as possible.

In most cases, yes- you’ll need to provide payslips or another form of income proof when applying for bad credit car finance.

Lenders usually ask for 2 to 3 months of recent payslips to confirm your income, employment status, and affordability. This is especially important for applicants with poor credit, as lenders want to ensure that you can comfortably manage your monthly repayments despite your credit history.

If you don’t have physical payslips, many lenders will also accept digital versions or recent bank statements showing regular income. Some lenders may offer open banking as an alternative, allowing secure, temporary access to view your income and spending directly- speeding up the verification process.

At ChooseMyCar, we’ll let you know exactly what each lender needs and help you prepare the right documents upfront. This makes the process smoother and increases your chances of a quick approval. Whether you’re employed, self-employed, or receive income in another way, we’ll work with our panel of trusted lenders to find the most suitable option for your situation.

Yes, a larger deposit can make it easier to get approved and reduce your monthly payments.

Putting down a bigger deposit reduces the total amount you need to borrow, which not only makes your monthly repayments more affordable but can also lower the overall interest you pay across the agreement. It’s also viewed positively by lenders, as it shows that you’ve been able to save and are financially responsible: something that’s especially helpful if you have a poor or limited credit history.

However, if saving a large deposit isn’t possible right now, ChooseMyCar also works with lenders who offer no-deposit car finance options, helping you get behind the wheel without needing upfront cash. Whatever your financial situation, we’ll help find a car finance solution that works for you.

No. Car finance agreements must be in the name of the person who will legally own and drive the vehicle.

Even if you’re trying to help a friend or family member with poor credit, the finance contract must be taken out by the actual borrower, and payments must be made from their bank account. This is a legal requirement to prevent fraud and ensure lenders can carry out proper affordability checks.

However, there are still ways to support someone through the process. Some lenders offer joint applications, where you apply together and your stronger credit history may improve their chances of approval. You could also act as a guarantor, agreeing to step in and make payments if they’re unable to.

At ChooseMyCar, we work with lenders who specialise in bad credit car finance, including options for joint applications and guarantor loans. We’ll explain which approach is best for your situation and help guide you both through the process smoothly.

Yes, it’s still possible to get car finance even if you’ve had a CCJ or default in the past.

Many specialist lenders in the UK offer finance options specifically for people with a poor credit history, including County Court Judgements (CCJs), defaults, or missed payments. These lenders focus more on your current affordability, employment status, and ability to make repayments now, rather than solely judging your past credit issues.

Approval rates are often higher when applying through a highly-rated broker like ChooseMyCar who works closely with a wide range of trusted lenders. You’ll have a better chance of finding a deal that suits your budget and circumstances even with serious credit issues on your file.

If you’ve had a CCJ or default and are unsure where to start, contact us today for free help and guidance through the process.