Car finance bad credit

Can I get car finance with bad credit?

You may be interested in car finance with bad credit if you have been struggling to find a finance deal that works for your financial situation. When you are looking to finance a car, you have three main options. The three types of contracts are Personal Contract Purchases (PCPs), Hire Purchases (HPs), and Conditional Sales (CS). If you have bad credit, it shouldn’t stop you from getting your dream car. Bad credit car loans are available for those with a poor credit history. Additionally, you can purchase all kinds of vehicles with them. You can contact one of our passionate team members and, you can also apply online or over the phone.

This guide will explain how bad credit car finance works, who qualifies for it, what the benefits are, and how to get the best deal!

How does getting car finance with bad credit work?

Bad credit car financing works the same way as regular car financing. However, your chances of getting approved are reduced.

If your credit rating is poor, a lender will need to trust that you can make the repayments on time each month. Lenders typically ask for income while you undergo an in-depth financial check. This process shows them there should be proof that you can make repayments. If anything goes wrong, they’ll want some form of security, ensuring their money will be repaid.

What are the benefits of a bad credit car finance loan?

If you’re looking to get a new car, but have a bad credit history, then look at our car finance deals. It works similarly to regular car finance loans. This means you and those that have good credit go through the same process when applying. However, if you have bad credit, you may get accepted by fewer lenders. But, there are some lenders that will accept applicants with poor credit. They may be able to help draft up a payment plan for you that can suit your financial circumstances. 

You can get car finance with bad credit if you have been refused before. It is important not to make lots of car finance applications in a short period of time. Your credit score may be lowered as a result, so getting accepted for car finance will be more difficult.

How do I find the best car finance with bad credit deals?

It’s essential to understand what each of these terms means when looking for the best car finance deal.

  • The APR is a measure of how much interest you’ll pay on your loan. Having a higher credit score and taking out a loan with a low APR will give you a better deal. A higher APR loan may benefit you if want to drive a cheaper car that you can’t afford. Think about whether or not this is something that’s going to be worth paying more in interest every month. Remember: if you have bad credit, you will likely get a loan with a higher APR. Compared to customers who have better credit scores.  You will more than likely face different rates.
  • The deposit is essentially security against missing your repayments. Your monthly payments can be lowered by having a deposit since it is applied to the overall value of the vehicle. But, it is possible to get car finance with no deposit. This means your monthly payments may be higher to make up for the value you didn’t pay paid in the down payment. This type of car finance is easier to secure if you have good credit. Some lenders may offer bad credit with no deposit car finance to customers. But this relies on the lenders since they don’t all offer the option to customers. 

Is it possible to finance a car if I have no deposit and have poor credit?

If you don’t have a deposit, you can finance a car with a bad credit car loan. There are many ways for you to pay off your car finance loan.

  • Use a guarantor: If you have a good friend or family member who could act as a guarantor for your car finance application. It’s best to get someone with an excellent credit score to be your guarantor. You use them as security against the loan. They would be responsible for paying them instead of you if you are unable to make payments on the vehicle. Don’t worry though, we also offer car finance for people who have no guarantor.
  • Dip into your savings: Over time, you could save up any spare cash that comes in until enough money has accumulated so that you can finance a car outright without any deposits!


  • Use your income: People who work irregular hours may still earn enough money each month to afford car finance with poor credit! However, we understand that this may be difficult depending on your circumstances. Our passionate specialists could help you secure your dream car despite most financial situations.
  • Get joint finance: Similar to car finance with a guarantor, this means that you have someone else who is also responsible for making repayments. If you enter an agreement with someone who has a great credit score, you can expect this option to work out best for you. You will be eligible to apply for better prices. If you want to apply for joint car finance, you’ll need to meet certain criteria. For example, you may need to live at the same address. Our experts will have better knowledge of these requirements. They will show you what could be offered to you with a joint finance agreement.

What if I have no credit history?

It may be possible for you to get car finance with no credit history. But it’s important to remember some lenders may reject you. People with no credit history are seen the same as those with poor credit ratings. Which is how lenders will see you when you get assessed during the application process.So what you get offered may be similar to what people with bad credit will be offered when it comes to car financing deals. Lenders will have no way of knowing if you can afford repayments if you have no credit history and are less likely to approve your application.

I have an IVA, does that change anything?

An Individual Voluntary Agreement (IVA), is a way of repaying your past creditors at an affordable price. Because the payment plan is legally binding, it could prevent you from getting accepted for car finance. This is due to the fact you will need to get permission from your IVA supervisor to take out another loan. 

IVAs lower your credit score, meaning you may get declined for car financing. Although, because of the nature of an IVA, lenders may see you as committed to paying off your debts. Remember that it is possible to get car finance with an IVA. Always discuss getting car finance with your IVA supervisor before you approach one of our brokers. Our team will try their best to help you secure your dream car, just make sure you get permission first! 

How will a CCJ affect my car financing chances?

A County Court Judgement (CCJ), is a high court judgement stating you owe money. It happens if someone makes a claim against you stating you owe them money and you don’t respond. CCJs make your credit score lower because it shows you haven’t been able to repay someone. 

Unfortunately, it shows up on your credit report, no matter if you have paid it off in full or not. This can make it harder for you to get approved for car finance. Lenders will see you as more unreliable. But, it is possible to get car finance with a CCJ that has negatively affected your credit score. If you want to increase your chances of getting approved for car finance, make sure you pay off your CCJ in full.

Lenders assess customers’ financial circumstances with CCJs differently and will take into consideration some things.

They are:

  • The amount making up the outstanding debts you still owe
  • The length of time your debts have been outstanding for
  • The different types of debts you have

Not all is lost if you have an unpaid CCJ held against you. You could still get accepted for car finance. It’s always best to apply through a broker since they know lenders that could help you. We can’t guarantee that you will be accepted, but it isn’t impossible to get car finance with a CCJ. 


If you have a poor credit history, then you may be able to apply for a bad credit car loan. We try to make sure that anyone has access to car finance options even if they have a bad credit score.

Talk to one of our dedicated team members to see if you qualify for car finance with poor credit.

Even if you have been refused car finance elsewhere, you could get accepted when applying for car finance through us!

Am I eligible for bad credit car finance?

You will have the best chances of getting accepted for car finance if you’re over 18, live in the UK, and have a regular income. Some lenders will accept you if you have a lower credit score. If you have enough money to put down on a deposit for your desired vehicle, this will also increase your chances of getting accepted for car finance with bad credit.

Which dealerships offer car finance with low credit?

Dealers licensed by the Financial Conduct Authority (FCA) can work with lenders or brokers to offer any legal car finance solution. This includes loans for people with bad credit. Dealerships will likely sell you a car if they know they’ll be paid by the lender: the lender takes the risk.

Our panel of lenders puts us at an advantage because we could help people, most financial circumstances considered. We work closely with them to help secure your dream car.

How long does the process of applying for bad credit finance take?

When you apply for a loan, the lender will ask you to provide them with some basic information. This includes your name, address, and employment details. The lender you apply through and your financial circumstances will heavily influence the cars you get offered. Our brokers will work hard to pair you with a lender that could offer you the best car finances for your situation.

The process of applying for a bad credit loan could take less than 24 hours and could be completed within minutes. If you’re lucky enough to be approved in this time period, then congratulations! You’ve just saved yourself a lot of time by finding out straight away that your application was successful.

If your application does not get accepted on its first submission, don’t panic! We have other lenders who offer car loans to people with poor or no credit history. 

Our team members are here to help you apply for car finance, whatever your credit status. Use our car finance calculator to discover what rates could be offered to you!

Can I get a brand new car with poor credit car loans?


Newer cars typically cost more to finance but the differences between new and used car finance are not so dissimilar. By proving you can afford monthly payments, you will have a better chance of getting approved for car finance.


If you’re thinking about applying for car finance with poor credit, it can seem intimidating. However, with some research and preparation, it’s not as difficult as you might think. We advise you to get your finances sorted and that you do your research beforehand. Our team members are available to answer any questions you may have about car finance when you apply through Caryy. Plus, they could help you through the process of applying and getting accepted for car finance with poor credit.

Use or car search tool to see what you might want to get!

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