Is It Hard to Get Car Finance?

If that sounds like you, don’t panic. Approval for car finance depends on several factors, including income stability and lender criteria. In other words, it’s not just your credit score that will determine your car finance eligibility.

Using a broker like My Car Credit is a great way to find suitable car finance deals for your needs and circumstances. Whether you’re a young driver with a limited credit history or your poor credit score’s left you wondering whether car finance is available to you, we can help you find a suitable motor finance deal.

So, let’s look at what really affects how easy it is to get car finance.

Is it hard to get car finance​?

Most people find that it’s easier to get car finance than they might think.

The ease with which you’ll secure car finance depends on your individual circumstances. You’re more likely to be accepted for car finance at favourable rates if you’ve demonstrated responsible borrowing (via your credit profile), and have income stability and good affordability.

The better your credit rating, the easier you’ll find it to get car finance. That said, using a broker like My Car Credit can improve your chances of acceptance by matching users to the right lenders, no matter your credit score. 

As part of the UK’s largest motor finance broker, we’ve got access to a broad panel of lenders, many of which specialise in car finance for individuals with poor or bad credit. That means we’re more likely to match you with a specialised lender who’ll work for your circumstances. 

Even if you’re an applicant with good or excellent credit, My Car Credit can improve your chances of acceptance. Our application process is done online, meaning you can secure car finance from the comfort of your own home. And any initial credit check we perform is a soft search, so it won’t impact your overall score.

What do lenders look for when you apply?

When you’re applying for car finance, expect to be asked about the following:

1. Credit history – Lenders use your credit report to evaluate your reliability as a borrower. Your credit report essentially acts as a repayment record, so any missed payments, outstanding debts or loan defaults will show up. 
2. Employment status & income – Expect to provide information about your employment status, including employer details and income stability. Steady earnings demonstrate better affordability.
3. Existing debts – Lenders will review how much credit you already have, considering any existing debts in order to evaluate your overall affordability.
4. Deposit size – It’s not essential to have a deposit saved up. But having one can strengthen your application, making it easier to secure favourable car finance.
5. Vehicle type & loan amount – The overall amount you’re looking to borrow, as well as the vehicle type you’re looking to fund, will impact your affordability. 
6. Affordability checks – Lenders will consider your income, expenses and any existing financial commitments or debt. These all factor into their affordability calculations, which indicate that you can comfortably repay the loan without going into further debt.

If you’re curious about your car finance eligibility, using a car finance calculator can give you useful insight into the kinds of agreement you might be offered. With My Car Credit, our initial credit checks are soft searches. You can establish your eligibility for car finance without worrying about leaving a mark on your credit report. 

Is it hard to get accepted for car finance with bad credit?

If you’ve got bad or poor credit, don’t panic. It’s more than possible to secure car finance with a less-than-ideal credit score. 

Admittedly, the application process for car finance with bad credit can be harder. CCJs, IVAs, loan defaults or missed payments can reduce your acceptance chances. But they don’t make it impossible.

In fact, some car finance lenders specialise in bad credit car finance. For example, at My Car Credit, we’ll consider your individual circumstances, using our broad panel of lenders to match you with the most suitable agreement for your needs and credit profile.

Does being self-employed make it harder to get car finance?

If you’ve got irregular income because you’re self-employed or engaged in gig work, you may have concerns about it being harder to get car finance.

But self-employed people can absolutely still secure auto finance. Lenders will just need to see proof of income via bank statements or tax returns.

You can improve your likelihood of acceptance for self-employed car finance by demonstrating a stable income, accurate accounts and an SA302 tax form from HMRC.

My Car Credit offers self-employed car finance via an online-first, broker-led model. By working with a variety of lenders who understand the challenges for gig workers or self-employed applicants, we can help you find the most suitable agreement for your needs.

Car finance through a broker vs a dealer

How hard is it to get finance on a car through a dealer​? A dealership will typically offer you finance from in-house or partner providers. As such, dealership finance can limit you to fewer lenders with less specialised agreements. 

By contrast, brokers act as intermediaries with access to a wide panel of lenders, many of which can provide specialised coverage for non-standard applicants. This wider reach helps answer the common question, “is car finance easy to get” as more lender choice generally increases the chances of approval.

With a car finance broker, you can benefit from wider lender choice, increasing the acceptance chances for applicants with diverse credit profiles.

With a broker like My Car Credit, you’ll gain access to more finance options than you’d secure via a single dealership or bank. Our online application process is streamlined for speed and ease, and we’ll perform an initial soft credit search that won’t risk your credit profile. 

Plus, our team of expert specialists are UK-based and always on hand to guide you through the application process.

What can you do if you’re struggling to get approved?

Wondering ‘is it hard to get car finance?’ and what you can do if you’re struggling to get approved? There are easy steps you can take to improve your credit score and increase your chances of car finance approval. 

With consistency, you can boost your credit score fairly quickly, so take the time to do the following:

1. Check your credit report and fix errors – Fixing mistakes like spelling errors or wrong addresses on your credit report is an easy hack for improving your overall score.
2. Register on the electoral roll – Even if you’re in shared accommodation or live with parents, registering on the electoral roll helps improve your credit report.
3. Pay bills on time for three months – Paying your bills on time demonstrates your reliability with money.
4. Reduce existing debts where possible – Your credit report will reveal any existing debts. Paying these off before applying for car finance can help with your overall application, demonstrating your ability to make repayments.
5. Consider adding a deposit – Though not essential, a deposit can favourably improve your chances of car finance acceptance, as well as lowering the interest rates and repayments you might face.
6. Use a broker to find flexible lenders – Using a broker with access to a large panel of specialised lenders will improve your chances of acceptance, no matter your credit profile. 

If you’re ready to find out more about how a broker like My Car Credit can ease the process of securing suitable car finance for your needs and circumstances, kickstart your application via our online form today. 

FAQs about getting car finance

Is it hard to get car finance ​for the first time?

If you’re a young driver, it’s likely that your credit history is a little thin, which can lower your overall score. This can make it more challenging to secure first-time car finance. But it’s not impossible. Working with a broker like My Car Credit will grant you access to a wide range of specialised lenders who can work with first-time finance applicants.

Does my income affect my car finance approval?

Your credit history plays a big part in car finance approval, but so does your affordability. Lenders will calculate your affordability based on factors like income stability and expenses. If you’ve got concerns about how your income might impact your likelihood of car finance approval, working with a broker like My Car Credit can help you secure the most suitable deal for your profile.

Can I get car finance with a CCJ or default?

Having a CCJ or loan default on your credit history can make it difficult to secure car finance. But not impossible. At My Car Credit, we look at every applicant individually, matching them to the most suitable lender for their needs and circumstances. As such, we may be able to find you car finance where others haven’t.

Is car finance easy to get and does applying affect my credit score?

Ultimately, applying for car finance will leave a mark on your credit report. At My Car Credit, however, your initial application is only subjected to a soft credit search, meaning it won’t impact your credit score. If you advance your application to the next step, lenders may conduct a hard credit check, which will show on your report.

Can I get car finance without a deposit?

Having a deposit can improve the kinds of rates and terms you can secure for car finance. That said, it’s not necessary to have a deposit to apply for car finance. In fact, some lenders offer ‘no deposit’ terms, which allow you to skip the upfront payment entirely.

How long does it take to get approved for car finance?

With My Car Credit, you’ll get an instant no-obligation quote on car finance when you submit our online application form. This essentially acts as car finance pre approval, and will indicate your likelihood of final acceptance in mere minutes. From there, the time it takes to receive the funds will depend on your circumstances and the lender.

What credit score do I need for car finance in the UK?

As a general rule, the higher your credit score, the more likely you are to benefit from favourable finance terms and rates. However, it’s entirely possible to secure car finance even with a less-than-perfect credit score. Brokers like My Car Credit can match you with specialised lenders who work with poor or bad credit applicants. We may even be able to approve you where others haven’t. 

Can students or part-time workers get car finance?

At My Car Credit, we work with applicants from diverse financial backgrounds, including self-employed and part-time workers and students. In fact, we’ve even got dedicated student car finance thanks to the wide panel of lenders we work with, helping you find a suitable agreement faster than it takes to microwave instant noodles.