Bad Credit Car Finance

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
4.9 out of 5

No Obligation
No Fees
Bad Credit? No Problem!

Bad Credit Car Finance

Get a Quote Does Not Affect Your Credit Score

Representative 21.4% APR

Blue Volkswagen Golf
Silver Ford Focus
4.9 out of 5

No Obligation
No Fees
Bad Credit? No Problem!

4 Years

48 monthly repayments


Best available rate 6.9%

Total cost of credit £1,069.12

Total repayment £8,569.12

48 monthly repayments


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

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  • 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

ChooseMyCar are experts in bad credit car finance

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 icon

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 icon

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.

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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 icon

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.

Silver Ford Focus ST

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

What is Bad Credit Car Finance? 

Bad credit car finance deals are those aimed at people that may have a less than stellar credit score. A car finance deal will allow you to spread the costs of buying a car out in affordable monthly instalments over a set period of time.A poor credit car finance deal can make buying a car a much more affordable thing to do, as you don’t need a large sum up front to be able to access it. You will need to prove that you can afford to make the repayments on an ongoing basis though.

More Information on Bad Credit Car Finance

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. We can help you find poor credit car finance deals. 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. If you want tips on raising your credit score you can find those in our guide on how to raise your credit score.

So what are my car finance options with bad credit?

We’re here to help you secure the best deal possible, even if your credit score is bad, even if you’ve been refused car finance elsewhere. We find that the best car finance deals for bad credit are often to be found with Personal Contract Purchase (PCP) or Hire Purchase agreements. We can help you find Hyundai poor credit car finance deals or the best Fiat poor credit car finance plans, for instance. While rates will often be higher than representative models there are still deals to be found. One other option for buying a car with bad credit is a personal loan, which you may be able to get from a lender. Another would be a guarantor loan, which can be an excellent option for those looking to get 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 that a low credit score often leads you towards, as it essentially means that if you miss a payment, someone else can step in and pick it up. We can help you find a car on finance using any of these options, whether you simply have a poor credit score, a CCJ or IVA. We can help you if you’re self-employed or are struggling to find car finance deals because you have no credit history.

How to get accepted for Car Finance with Bad Credit? 

At ChooseMyCar we can help you get accepted for car finance, even if you have a poor credit score. We understand that everyone’s situation is different, and that means we know how to help you get accepted for car finance, with a low credit score or no credit history. You will need to prove that you can afford the repayments, as this could show that even though your credit score is low, you have the money available to afford the repayments. It also helps if you have the ability to offer a deposit. This would help keep rates low but also bring down the overall amount you owe for the car in the long run. Another option, if you’ve had issues getting approved, would be a guarantor loan. This would give additional reassurances to the lender that you can pay back the money owed.

How to apply for Car Finance with Bad Credit

Applying for car finance is simple, whether you have a low credit score or not. Just follow these simple steps:

  1. Use our car finance calculator to find out what you can afford - this will give you a representative example based on the information you provide.
  2. Apply for car finance - simply fill in our application form for car finance with bad credit, we’ll just need some basic information from you.
  3. Get approved for car finance - this can be as quick as the same day you apply.
  4. Buy your car from any dealer - now your finance deal has been approved you’re free to buy your car.
  5. Make your repayments on time and in full

This process should see you get approved for bad credit car finance and get you behind the wheel of a used car in no time.

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 poor credit score can stop you from loaning money, but it can mean that it becomes tricky to do so.

Quick tips on improving your credit score

  • 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.
For more information on what an IVA can mean when applying for car finance check out our guide.

Best cars for bad credit car finance

While there is no single car manufacturer that specialises in cars for people with poor credit, there are a number of cars and manufacturers that are great options. Kia bad credit car finance deals can be a great option, for instance, with their excellent long warranties. If you want to find out the cheapest car to buy on finance, check our guide. We are experts in car finance and can help you find the best deals on Renault bad credit car financehonda bad credit car finance and Volvo bad credit car finance. Why not check out our Mini bad credit car finance options too? We have links with dealers and manufacturers offering used VolkswagensFords and Audi cars, all of which could be an option on poor credit car finance. It’s always worth working out what you can afford before applying for car finance, whatever your credit score.

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.

Guarantors will have to undergo a credit check at the same time as the borrower. This is done to make sure that they are in the right situation to be making any repayments if they are called upon, and the lender will want to see that they are reliable.

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 loan is different from other loans in a couple of ways. First of all, they include a third party. That third party will be someone you know who will act as a guarantor and will make any of the payments you miss. Secondly, guarantor loans are generally unsecured, meaning they aren’t placed against an item, like the car in a car finance agreement, so the car is unlikely to be reclaimed if a payment is missed as the guarantor will step in and make it.

Yes, you can get car finance using a guarantor. Having a guarantor may make a lender more likely to accept someone with bad credit or no credit history as a borrower. This means they can be a good option for people in these situations. 

While a guarantor can help someone who has bad credit get approved for car finance, they themselves cannot have a poor credit score.

While it’s not uncommon, and often preferred by lenders, for a guarantor to be a homeowner, it’s not essential. They could be a renter or even live with their parents. The important thing is that they can prove that they can afford to make any missed repayments.

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.