Bad Credit Car Finance
I have bad credit. Can I get car finance?
The simple answer here is YES! At CarFinanced, we secure people car finance with bad credit, even if they’ve been refused in the past.
We know a bad credit score can happen to anyone, and should not be the reason people can’t drive a car they really want. A bad credit score can be caused by a CCJ, IVA or even missed payments on other loans and credit agreements.
Whatever your circumstances, our team will work with you to get the best deal available and have you driving away with a new car with payments that suit your budget.
How do I know if my credit is considered ‘Bad’?
Bad credit is defined differently depending on the credit reference agency you use. Below you will see the bandings for the UK’s 3 agencies.
Here are the bandings that Experian, Equifax, and TransUnion currently use to define a poor or very poor credit score:
- Experian – 0 – 720 (this is quite a wide banding and the toughest to climb out of)
- Equifax 0 – 438 (the tightest banding of the 3)
- TransUnion 0 – 566
The great news is that we can still support you with car finance even if you sit in these bands. As well as that, your credit score can be improved over time so you are never stuck with bad credit forever!
What if I have no credit history?
It can certainly be difficult taking out a car finance agreement if you’ve never borrowed money before. The simple reason being lenders have no way of assessing whether or not you’ve kept up to date with payments or not. Quite often, people will apply for a credit card just so they can build a credit score for the future.
We would certainly advise anyone with no credit history to do their homework before borrowing from anyone, making the process easy. A credit check is required to provide reassurance to both lender and borrower so ensure this is part of the process. At CarFinanced, a soft credit check is carried out, but this will not affect your credit score until you decide to proceed with the agreement.
Luckily, because of our vast panel of lenders, you could still secure a loan without any credit history. We help people with a variety of circumstances every day so why not go ahead and get a quote today?
Can I improve my credit score?
Bad credit scores are nothing new and can often be a major cause of stress within the household. The great news is that credit scores are not fixed and can be improved over time.
There are some key things to consider when trying to improve your credit score:
- Ensure there are no errors on your current credit score. A simple mistake can cause a huge problem
- Ensure you stay under your available credit
- Ensure all bills are paid on time and don’t over stretch yourself
- Keep credit applications to a minimum at any one time
- Ensure you are on the electoral roll
Do I need any documentation?
As with any loan agreement, our panel of lenders will require a few documents to ensure you are eligible for a car finance loan. These may include:
- Proof of driving licence
- Proof of address
- Proof of income
If you have bad credit and you are self employed, we can still help. Our panel of lenders are used to working with a range of circumstances so your dream car is still very much an option.
Why use CarFinanced for a bad credit loan?
CarFinanced was built to help people drive the car they really want regardless of their circumstances. Our mission is to give you the options so that you can make the best decision based on your personal needs.
No matter what your credit score looks like, we can help find you the best car finance deal for bad credit. So whether it’s the new family car with the big boot, or a 2 seater sports car for a weekend blast, we are here to help.
Frequently Asked Questions
At CarFinanced, we allow everyone to check whether they are eligible to be approved for finance within a few minutes. Share some small details with us and our lenders will use that information to carry out a soft credit search to give you an answer with the best deals right away.
Annual percentage rate (APR) is the interest rate applied to your loan. Predominantly, it is the yearly cost of your borrowing. You will pay this on top of the sum that you have applied for. If you take out a long-term loan, the total amount payable will be more, as you will be paying interest for a longer amount of time.
