What is bad credit car finance? Bad credit car finance is a loan that is extended to individuals with poor credit history in order to finance the purchase of a vehicle. Typically, people with bad or poor credit struggle to find a lender. This is because they represent a higher risk to the lender due to their financial history. We think this is unfair, and your past financial circumstances shouldn’t prevent you from buying a car today. We’re proud to have helped hundreds of people afford a vehicle despite being in a less-than-ideal financial situation.
Our easy-to-use car finance calculator gives you an indication of how much a loan secured through us will cost before you even sign up. Once you’ve signed up using our simple online application form, we’ll pass your information onto our expert panel of lenders, and you can receive an offer back the very same day.
Apply today to secure a car loan with our bad credit car finance.
There are a number of scenarios within which your credit rating may be considered ‘bad’ or ‘poor’. We endeavour to help all individuals that struggle to gain car finance, including:
CCJ stands for County Court Judgement, and it is registered against a person for failing to repay loans on time. This, obviously, can be a hindrance to your credit application with most providers, but here at Car Finance Plus, we specialise in helping people in this very situation. Simply provide us with proof of income and we’re confident that our lenders will be able to help you with a car loan. Note that having a guarantor in place can strengthen your case. See our CCJ car finance page for more information.
Being self-employed often makes securing any kind of loan more difficult, largely due to the perceived uncertainty surrounding your income. The same can apply to those who work part-time or on a freelance basis. However, we believe that this factor shouldn’t prevent you from buying a car on finance, and we pride ourselves on helping people in this situation. We’ll need to receive bank statements from the past 3 months as proof of income, and we’ll match you to a lender who will almost certainly be able to help. See our self-employed car finance page for more information.
It is possible to secure car finance while unemployed, but the lack of income does make it more difficult. You must be able to prove that you can keep up with the payment demands. Submit your application form and our experts will contact you regarding your eligibility and next steps.
Declaring bankruptcy can limit your financing options. If you’ve been discharged from your bankruptcy, our lenders will likely be able to help you. We cannot give any guarantees, but we make it our mission to help. Our lenders will give you the advice you need in order to secure car finance. Apply now to get started.
We divide the reasons for having a bad credit rating into three categories.
First of all, and perhaps most obviously, if you’ve had trouble repaying loans in the past, this will be reflected in your credit profile. Evidence of poor money management is a sure-fire way to harm your credit rating. It makes sense that, if you have previously defaulted on repayments, you represent a higher risk profile to lenders moving forward.
Secondly, having never taken out a loan will also contribute to a poor credit profile. The reason being that there is no way to prove that you are responsible when it comes to repaying loans, because you’ve never had to do so. A credit profile is bolstered by evidence of good money management, therefore the absence of this evidence serves to harm your credit profile.
Thirdly, other factors including moving house often, changing employer often, not being on the electoral register, and having several credit searches in a short space of time will all contribute to a bad credit rating. While some of these factors may be out of your control, we advise rectifying those that are in order to improve your credit profile and therefore your chances of being accepted for car finance.
A credit profile includes more than just a credit score. It also includes information on your addresses, employers, credit cards, mortgage and auto loans, filed bankruptcies and civil judgements, as well as previous credit inquiries. Your credit profile even records any times you’ve applied and been rejected for loans in the past (which negatively affects your credit score).
It is of the utmost importance that third parties have up-to-date information on you. In the past, people have had unfairly low credit scores simply due to outdated information being used in the assessment. Understand what information is held and ensure it is up-to-date – it could be the difference between being accepted and being rejected for car finance.
Please note that credit scores don’t have a universal scale, and the score you receive will depend on the agency used to perform your credit check. Most lenders will use either Experian or Equifax, and a credit score of 500 with Experian is classed as ‘Very Poor’, whereas 500 with Equifax is ‘Excellent’. Always refer to the individual provider’s scale when assessing the value of your credit score. See our eligibility page for more information on credit checks.
Our How it Works page will answer any further questions you may have on our process. We don’t just offer car finance either, we can also help people with financing other types of vehicles, including van finance and motorbike finance.
Representative example: Borrowing £8500 over 4 years with a representative APR of 29.9% and a deposit of £0, the amount payable would be £289 per month, with a total cost of credit of £5360 and a total amount payable of £13,860.