Is It Hard to Get Car Finance?

Understanding the car finance landscape

The first step is to understand your different options when it comes to car finance. In the UK, the most popular auto finance options are Personal Contract Purchase (PCP), Personal Contract Hire (PCH) and Hire Purchase (HP).

Overcoming poor credit

The next step is addressing the potential roadblocks that might make you think getting car finance is challenging. The most important is your personal credit history. Lenders typically use your credit score to assess your reliability as a borrower. A solid credit score helps support your application while a track record of late payments or defaults can raise red flags.

Is it hard to get car finance with poor credit? A less-than-ideal credit score can be a hurdle, but it doesn’t mean finance will definitely be declined. Many lenders are happy to work with applicants who have poor credit scores and offer options tailored to this scenario.

Options for success

Wondering how hard it is to get car finance with poor credit? Below, we’ll explore a few different options to boost your application and improve your chances of success.

Partner with a broker

Enlisting the help of a broker can be a great way to overcome issues like poor credit. The best brokers work with high street banks as well as independent lenders who are more flexible when it comes to applicants with poor credit. You may not enjoy the same best-in-class deals as applicants with excellent credit scores, but your chances of approval will be significantly higher.

Build your credit score

Taking steps to improve your credit score is another easy way to secure car finance.

Consider a guarantor

Another approach is to secure a guarantor, a co-signer who vouches for your ability to repay the loan. Sharing the responsibility can increase your chances of approval.

Increase your down payment

Increasing your initial deposit can make your application more appealing to lenders as it reduces the amount you need to finance and proves you have the capacity to save and budget.

Give your application the green light

At My Car Credit, we don’t see challenges as roadblocks. We see them as opportunities to assess and improve your financial situation. Our dedicated team will help build you a strong application, then expose it to a broad network of lenders to improve your chances of approval.

Is it hard to get car finance without a broker? While it’s definitely possible, help and support from the experts will make your experience a whole lot easier. If you’re ready to get started, give us a call at 01246 458 810 or email us at enquiries@mycarcredit.co.uk to find out more.