If you pass your driving test before or during university, you’ll be in the advantageous position of driving as a student. That means no more buses and trains to and from campus, home or your part-time job.

Whatever the case, having a trustworthy car is a huge benefit for students, but there's just one small hurdle to address – how do you pay for it? My Car Credit explores the ins and outs of securing car finance for students.

In reality, it’s difficult for most people to cover the costs of buying a car upfront, let alone for someone prioritising their studies. However, there’s no need to fret because your student status doesn’t exclude you from purchasing a car on finance. To qualify, you’re assessed the same way as everyone else – on credit history, income and risk.

1. Credit score

A credit score is a rating based on your financial history that helps lenders to determine who qualifies for a loan, the potential risk, interest rates and credit limits.

To ensure you’re in the best possible position to qualify for finance, you’ll need some active credit history to reassure companies you can manage your money responsibly. Below, we’ve listed three simple ways you can improve your standing with lenders.

Mobile phone contract 

Most students already have mobile phones on contract but if you don’t, consider entering an agreement. They work much the same as repaying car finance, albeit on a much smaller level. Paying your monthly bills proves you’re able to budget your finances accordingly.

Student credit card

If you have a student bank account, you may be eligible for a student credit card with a low credit limit. If so, use this card to make small purchases, then settle the outstanding balance at the end of each month.

Electoral roll 

Lenders check whether you’re on the electoral roll to protect themselves against fraud. If you’re a young student, your parents will probably have registered you at your home address. However, you can also re-register at your student address.

2. Income

To qualify for finance, you’ll have to prove you have some reliable means of income. To be clear, you cannot make repayments using your student loan. If you don’t have any income, you have to honestly assess if you can afford to buy a car in the first place.

It doesn’t matter whether you have a full-time or part-time job – what’s important is how much you earn. At My Car Credit, we consider applications from students who make around £1000 per month.

3. Guarantor or Joint Applicant

If you’re a parent, you might wonder if you can finance a car for your child. In a sense, you can – while your child will be responsible for making the agreed repayments, you can bolster their application by agreeing to be either a guarantor or by making a joint application. 

A guarantor is usually a close relative, with a good credit history, who is prepared to back a loan by agreeing to continue payments if the recipient is unable to make them. They are not responsible for repaying the loan but act as a safety net to mitigate risk for lenders. However, the responsibility of being a guarantor should not be underestimated. Failure to make the monthly payments will mean that ultimately, both parties may find their credit profile affected.

A stronger option is via a joint application by both the student and a parent. This is a good solution where the student is on a good income but maybe has a weaker credit score. Again, there is a big responsibility that comes with this approach. It is therefore important to consider all options before entering into a car finance agreement.

How we can help

If you’re a student, you’re still eligible for car finance provided you have a credit history, some reliable income and, where necessary, a guarantor or joint applicant. 

Our online application form doesn’t allow for adding in an additional person. Instead, to start your journey, speak to one of our team members by calling 01246 458 810 or emailing enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating


  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed


  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs


  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit


  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past


  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan

X monthly repayments of

Typical rate

Loan amount

Total payable




*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!