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How to Finance a Car with Poor Credit

You don’t need an ‘excellent’ credit rating to take advantage of car finance payment plans. If you have a lacklustre score and want to know more about how to finance a car with poor credit, we have answers.

Read on to find out how to get car finance with poor credit rating in three easy steps:

Step 1: Find your credit score

Your credit score plays an important role in determining how much you can borrow, as well as the terms and conditions of your loan. It offers lenders an overview of your borrowing habits and helps establish the level of risk associated with your loan. Credit scores are calculated using a range of factors, including credit card payments, outstanding loans, previous finance applications and direct debits currently in your name. We recommend Experian to find your credit score.

The latest data from Money Supermarket is a good place to start when looking for a benchmark. The platform uses TransUnion as a credit reference agency, with scores ranging between 0 to 710. Scores of between 566 and 627 are considered ‘good’ while scores of 628 or more get you into the ‘excellent’ category. The average Brit has a credit score of 573, according to a survey conducted in December 2021. This is slightly higher than the 569 average recorded in December 2020, which suggests credit scores are on the rise.

Of course, not all Brits enjoy an ‘excellent’ or even ‘good’ credit rating. If you’re hovering around the 550 or lower range, you could fall into the ‘poor’ category. Don’t worry, this isn’t game over and you’re definitely not alone. Thousands of Brits have poor credit ratings, with the North West and North East of England recording some of the lowest averages.

While poor credit history is often considered taboo, there are all kinds of reasons why you may have a less-than-perfect score. Things like minor mortgage defaults and outstanding bills can bring down your credit rating. You might also be given a flat score if you haven’t built up a credit history yet or you’re self-employed and have difficulty proving your income. Whatever your unique situation, don’t let your ‘poor’ rating drag you down just yet.

Step 2: Crunch your numbers

After establishing your credit score, it’s time to crunch your numbers. Our car finance poor credit rating calculator is a quick and easy way to do the maths and get an idea of what types of numbers you’re looking at. It’s quick, easy, and most importantly, stress-free. The last thing you want when you’re researching how to get car finance with poor credit rating is a headache. That’s why we’ve created this calculator to streamline the process and give you results in a matter of clicks.

All you need to do is enter your preferred loan amount, repayment terms and finally, your credit rating. There’s no impact on your credit score, so don’t worry about pushing your rating even lower. After you’ve punched in the numbers we’ll generate your expected monthly payments, as well as what typical APR rate to expect.

Our goal is to make your experience as easy and transparent as possible, which is why we also include the loan amount and total payable figure. No blurred lines here. Just simple, easy to interpret numbers. If you want to know more about how to finance a car with poor credit, simply hit the ‘apply now’ button and follow the next steps.

Step 3: Secure a lender

You’ve established your credit score and crunched the numbers. Now it’s time to secure a lender. There are loads of options out there and it pays to shop around and find a lender that suits your unique needs.

Here’s some tips on how to secure the best car loans from top lenders in the UK:

Look for brokers with good connections

One of the best ways to improve your chances of securing car finance with poor credit is to enlist the help of a broker. Working with an established financial services platform is an easy way to browse the market and track down the best deals, without having to do a huge amount of groundwork.

Brokers can be a godsend but it’s worth noting that not all offer the same customer-focused, results-driven services. When you choose My Car Credit, you’re unlocking access to one of the largest panels of lenders in the UK. We’re part of Evolution Funding, the UK’s biggest and most trusted motor finance broker.

In addition to a wide panel of trusted lenders, we use purpose-built technology to track down the best deals. This means we’re often able to secure approval for car finance where other brokers have failed. If you’re researching how to finance a car with poor credit, it’s hard to find a better solution.

Remember, all circumstances are considered

Ruling yourself out too early is one of the biggest mistakes you can make when researching how to finance a car with poor credit. A good car finance platform should consider all circumstances, regardless of how low your credit score is. Often, there’s more to the story than meets the eye.

At My Car Credit, our passionate team of auto finance advisors are here to dig deep into your finances and secure you the best possible loans and interest rates from our panel of lenders, no matter what your credit score. Every case is assessed individually, with zero judgement. Our goal is always to find the best car loan for your unique circumstances. With access to a large panel of trusted lenders with options for all kinds of applicants, we’re well-equipped to do just this.

Want to know more about how to finance a car with poor credit? Get in touch via email or give us a call on 01246 458 810 to discuss your car finance options and learn more about how to get car finance with poor credit rating.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

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!

or call 01246 458 810

Can You Lease a Car with Poor Credit?

The need for a gold-standard credit rating to lease a car is one of the biggest misconceptions in the auto industry. If you’re wondering “can you lease a car with poor credit” this article is for you.

Yes, leasing a car is a significant financial responsibility and creditors will do their due diligence to ensure the risk isn’t too big. But that doesn’t mean car loans are reserved exclusively for Brits with good credit. So, can you lease a car with poor credit? Absolutely.

It’s not always as straightforward as leasing a car with good credit and you may end up paying a little more when it comes to interest. But with the right support and a good strategy, it’s definitely possible.

Read on to find out more about how to lease a car with poor credit and stop feeling dragged down by a less-than-perfect score.

Understanding car leases

With the average cost of a new car now sitting at around £20,000, paying cash for a new set of wheels isn’t a reality for most Brits. Even used cars can be pricey, especially in the face of soaring demand and the current semiconductor shortage. This is where car leases step up.

Funded by trusted lenders, these long-term rental agreements boost your spending power and get you behind the wheel of your dream car ASAP. Like other financial loans, such as mortgage and credit card applications, your credit rating can have an impact on how much you can borrow and the terms and conditions of your loan.

The nationwide car finance trend

The latest stats from the Finance & Leasing Association (FLA) reveal more than 93% of all private new car registrations in the UK are purchased using finance from FLA members. No doubt about it, the UK is a nation that’s well and truly embraced the benefits of automotive leases. The good news is, even if you have a poor credit the chances of securing a loan and taking advantage of long-term rental options is still possible.

Why your credit score matters

Your credit score offers potential financers an idea of what to expect when lending you money. For example, missed payments on a credit card or a previous bankruptcy declaration will bring your credit rating down. This suggests you may not be the most reliable borrower. On the flip side, a flawless track record boosts your credit score and implies you’re a reliable borrower.

When you apply for car finance, lenders will check your score using a UK credit reference agency. Results are used to assess your loan and decide if it should be approved or denied. ‘Good’ or ‘excellent’ scores are preferable but not essential.

Why is my credit score poor?

There are all kinds of reasons why your credit score might not be up to scratch. Of course, missed payments on a credit card or outstanding debts can drag down your rating. But factors such as no previous long-term loans can also keep your score in the below-average range. Yes, sometimes being too responsible with money and avoiding debt can hinder your credit score! Your score might also be flawed due to association with a partner with a poor credit rating.

Can you lease a car with poor credit? Here’s a closer look at why your credit score matters:

The amount you can borrow

One of the biggest factors your credit score affects is the amount you can borrow. Your credit rating is used to establish your financial history and determine your risk factor. Results help lenders decide how much they’re willing to lend you.

That said, your credit score isn’t the only thing lenders will consider when viewing your loan. Your initial deposit can sway the decision and play a role in determining how much you can borrow to fund your new car purchase.

Your interest rate

As well as influencing the amount you can borrow, your credit score may be used to determine your interest rate. Generally, higher credit ratings correlate with lower interest rates. This is good news for applicants with low credit scores who are hoping to secure a car loan. While you may not be able to unlock the best interest rates, poor credit doesn’t rule you out completely. Instead, you may be offered a higher rate than an applicant with excellent credit.

When shopping around for car loans, look for platforms that offer rates starting from 6.9% APR and take note of the representative APR that they advertise. This gives you an indication of the rate that the majority of their customers (at least 51%) will get.

The representative APR is important because it means that nearly half of customers will be given a rate more than the representative APR. This is especially true where you have poor or bad credit.

The length of your loan term

Your credit score may also affect the length of your loan term. This can have a big impact on the size of your monthly payments.

Can you lease a car with poor credit?

You may not be able to secure the same rock-bottom interest rates as applicants with ‘excellent’ credit but with the help of our in-house advisors, the chances of leasing a car with poor credit are improved. Whether you’re in the market for a nearly-new hatchback or a second-hand SUV, we’re here to help.

Ready to jumpstart your car lease application? Use our car finance poor credit calculator to generate a quick online quote, with zero impact on your credit score. Forget the hard sell. We’re all about offering our customers an easy, stress-free experience.

SendSend us an email or give us a call on 01246 458 810 to find out more. We’re always available to answer all your “can you lease a car with poor credit” questions and discuss your car finance options.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Understanding How Far Back Lenders Look into Your Credit History

Tips for Car Finance Recovery After a CCJ

How to Strengthen Your Eligibility for Car Finance

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

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!

or call 01246 458 810

bad credit poor credit

Buying a Car with Poor Credit – 3 of the Best Cars

Colourful cars lined up ready for poor credit buyers

Buying a car with poor credit can sometimes seem like an impossible task. Once you’ve been knocked back by your bank or other lenders, it’s easy to just give up and stick with the car you’ve got – or in some cases, no car at all.

Whether it’s through constant repairs to an old banger or the ever-rising fares for trains, buses and taxis, sticking with what you’ve got can actually end up costing you more over time.

The solution is to find where you can get a car loan with poor credit but also to find the right car. By choosing a car with a lower price tag, you won’t need to borrow as much. This means you’re more likely to get your finance approved or get a better deal overall.

Read on as we look at three of the best cars for poor credit.

1. Dacia Sandero Access

Dacia prides itself on offering a cost-effective alternative to almost any type of car. The Dacia Duster makes the continually popular SUV models a little more accessible at less than £12,000, while the Dacia Logan MCV Estate boasts a whopping 573 litres of boot space for under £11,000.

If you’re looking specifically at price as a bad or poor credit buyer, you can’t go better than the entry-level Dacia Sandero Access. From the decent boot space of 320 litres to its impressive fuel-efficiency at 55 miles per gallon, the Sandero Access is a great all-rounder, with an even better price tag.

2. Skoda Fabia

If you like the reassurance of a big-name manufacturer but don’t like the price tag that comes with it, Skoda Fabia is a great way to get the best of both worlds. We know what you’re thinking – Skoda is hardly a household name. However, as part of the VW Group, it has access to the same design and most of the same parts at the much-loved Volkswagen Polo.

With the base version of the Skoda Fabia from as little as £13,000, you can effectively get the drive of a Polo without the cost. With neat little features like DAB and Bluetooth as standard, this certainly won’t feel like a car for poor credit.

3. Citroen C3 Aircross

Citroen is perhaps best-known for its iconic people carrier, the Grand C4 Picasso. However, if you’re looking for something a bit more current, the Citroen C3 Aircross could be right up your street. This stylish SUV combines the comfortable driving experience of an SUV with the convenience and functionality that its C4 counterpart has become synonymous with.

Its impressive dimensions provide plenty of space within, extending from spacious seating and leg room to the 410 litres of boot space. That’s paired with a 1.2 litre petrol engine which offers a combined fuel economy of 51.5mpg. The result is a car that’s not only good for buying a car with bad credit – at a relatively low £18,000 brand new – but also pretty cheap to fill up and insure.

New or used cars for poor credit?

The cars listed above are some of the most affordable new models on the market. These will give you a good idea of the best brand new options for buying a car with poor credit. However, it’s important to weigh up both new and used cars to decide which is best for you.

With a new car, you’ll get a longer warranty, the latest features and typically a bit more fuel-efficiency. However, with a used car, you’ll benefit from proven reliability and cheaper insurance. Crucially, given that cars lose a big chunk of their value once they leave the dealership, used cars come at a lower cost.

Given that the cost of the car itself is a major factor for the cost of car finance, that means you won’t need to apply for quite as much. The great thing is you could have it paid off quicker or with lower monthly instalments. Either way, it will make it even easier to stick to those payments and improve your credit rating over the coming months and years.

Securing finance with poor credit

If you’re exploring buying a car with poor credit, speak to the team at My Car Credit. We draw upon a network of 27 trusted lenders to finance cars for poor credit, so you can spread the cost of your new ride regardless of your credit history.

Apply online today or contact our team to talk through your options with no obligation.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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Which Used Cars Have Zero or Low Road Tax?

Can I Buy a Car at Auction with Finance?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

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!

or call 01246 458 810

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What Is a Bad Credit Score vs Poor Credit Score?

If you’re shopping around for a suitable car finance deal, you’ll likely come across a lot of jargon. One of the most common phrases you’ll see is a ‘credit score’. But what actually is a credit score, and what is a bad or poor credit score?

Whether you’re looking for car financing, a mortgage or loans, credit scores are essential for borrowing. That’s because your credit score shows how well you’ve managed credit in the past (your credit history), giving lenders a sense of your reliability as a borrower.

When it comes to credit scores, the terms ‘bad’ and ‘poor’ credit can be used interchangeably. But they often mean slightly different things.

So, let’s recap the key questions – “what is a poor credit score”, “what is a bad credit score”, and “how much do they matter when you’re applying for car finance or other credit”?

What is a credit score and why does it matter?

A credit score is a three-digit number or rating. It’s based on your financial history and reflects how reliable you are at repaying and managing your money.

There are a number of factors that impact your credit score. These include everything from your repayment history, reliability, credit usage and the length of your credit history. Knowing your score gives you a better idea of how lenders may view you as a borrower.

Your credit score impacts your ability to access certain finance agreements. A lower credit score can make it harder to access better deals and interest rates. Thankfully, there are easy ways to improve your credit score over time.

There are different credit reference agencies, but three of the biggest in the UK are Experian, Equifax and TransUnion. These agencies have a different credit score range, meaning you’ll have a slightly different credit rating with each of them. That’s why there’s some variation between a ‘bad’ and ‘poor’ credit score.

What is a bad credit score?

As mentioned above, different credit reference agencies have different credit score ratings. It’s important to note that ‘bad’ isn’t one of the specific categories used by agencies. These are excellent, good, fair, poor and very poor. Bad is more of a subjective category, which people may use to group both poor and very poor scores.

Be aware that some lenders can consider anything below a ‘fair’ credit score to be ‘bad’. Here’s how that could look using scores from the UK’s three major agencies:

Experian: 0 – 720
Equifax: 0 – 530
TransUnion: 0 – 565

There are a number of reasons why you may have a bad or poor credit score. If you’ve frequently missed payments, repeatedly applied for lines of credit, or have high debt or a number of defaults, your credit score is likely to be lower. CCJs (County Court Judgements) can also negatively impact your credit report.

What is a poor credit score?

To Experian, Equifax and TransUnion, a ‘poor’ credit score is:

Experian: 561 – 720
Equifax: 439 – 530
TransUnion: 551 – 565

A poor credit score is below average, but it’s not the worst (‘very poor’).

Common causes of a poor credit score include a short credit history, low limits and occasional late payments.

It’s sensible to know what lenders look for if you’re applying for finance with poor credit, so take the time to strengthen your application.

If you’ve got poor credit, don’t panic. There are surefire ways to improve your credit score and increase your eligibility over time with good financial habits.

Bad credit vs poor credit: what’s the difference?

When it comes to credit ratings, ‘bad’ is a broad term that can cover both ‘poor’ and ‘very poor’ scores.

Remember that taking simple steps to improve your credit score (such as demonstrating your payment consistency) can move you from a ‘bad’ or ‘poor’ credit score to ‘fair’ over time.

Factor	Poor Credit	Bad Credit
Score range	Slightly below average	Significantly below average
Risk to lenders	Moderate	Higher
Common causes	Short credit history, small financial mistakes	Defaults, CCJs, missed payments
Likelihood of approval	Possible with conditions	Limiter, higher interest rates
Recovery timeline	6 to 12 months	1 to 3 years

How do bad or poor credit scores affect applications?

The lower your credit score, the more difficult you may find it to access attractive finance deals and interest rates. That said, there are ways to improve your overall score and boost your eligibility as a borrower.

A poor credit score might still be approved with higher interest or by using a guarantor. Whilst it is possible to secure car finance with bad credit, you might need to use a specialist lender or broker.

That’s where My Car Credit can help. Whether you’re looking for car finance with poor or bad credit, our access to the largest panel of car finance lenders out of any UK broker means we can connect you with specialist lenders who’ll consider your individual circumstances.

What’s more, our initial credit check is only ever a soft search, meaning that it won’t impact your overall credit score.

Be aware that whilst lenders will look at your credit score to assess your eligibility and reliability as a borrower, they’ll also consider overall affordability. In other words, lenders will assess your overall income, expenditure and any existing debt to evaluate your ability to repay a loan.

How to improve your credit score over time

There are a number of ways that you can improve your credit score over time. Some of the best strategies for doing so include:

Checking your reports – Double check your credit report for any small mistakes, including typos and wrong addresses. Advise your provider of any mistakes to improve your overall rating.
Paying your bills on time – Making your regular bills on time and in full is one of the best ways to improve your credit score.
Registering to vote – Even if you live with parents or in shared accommodation, registering to vote can boost your credit score.
Minimising credit utilisation – A low credit utilisation indicates that you’re only using a small percentage of any credit available to you, making you a less risky loan candidate.
Keeping older credit accounts open – Keeping old accounts open will increase your credit history, favouring your overall score. Just be sure that you pay off any outstanding debt on these accounts.

It’s also worth checking your credit score with all three credit reference agencies (Experian, Equifax and TransUnion) to ensure accuracy.

With My Car Credit’s car finance calculator, you can explore suitable motor finance deals for your needs and circumstances. Plus, because our initial application is only ever a soft search, it won’t impact your overall credit score.

Can I still get car finance with a bad credit score?

It’s entirely possible to secure car finance with either a bad or poor credit score.

By using a lender like My Car Credit, you’ll get access to specialists in poor or bad credit. Because we’ve got the largest panel of car finance lenders out of any broker, we can help you find the most suitable product and lender for your circumstances. That means you’re more likely to be approved for an agreement at a rate you can afford.

Use our online application form for a no-obligation, initial soft search check of your profile. We’ll establish your eligibility and indicate the kinds of car finance agreements you could benefit from, all without impacting your overall credit score.

Plus, we focus on more than just your credit score. By assessing your overall affordability too, we’ll get a more comprehensive sense of your borrower profile, helping to find an appropriate finance agreement for your circumstances.

Bad credit vs poor credit FAQs

What’s worse: bad or poor credit?

Because it’s broader, bad credit can be worse than poor credit, representing a higher risk to lenders. Different UK credit reference agencies vary in their classification of ‘bad’ and ‘poor’ credit. That’s why it’s sensible to double-check your score with each agency, so you’ve got a better sense of your rating.

How do I know if I have bad or poor credit?

There are easy ways to check your credit rating. Three of the UK’s biggest credit reference agencies (Experian, Equifax and TransUnion) have online tools for you to check your credit score.

Does bad credit mean I can’t get car finance?

A bad credit rating doesn’t mean you can’t get car finance. With a lender like My Car Credit, you can secure car finance even if your credit rating is poor or bad. With access to a range of specialist lenders, we’ll help you find the most suitable deal for your circumstances.

Can improving my credit score lower my car finance rate?

Improving your credit score is one of the best ways to increase your access to more favourable car finance agreements. It demonstrates that you’re a more reliable borrower to lenders, who may therefore offer more favourable terms. Be aware that affordability can also be considered in any car finance rate you’re offered.

How long does it take to rebuild from bad to good credit?

There’s no clear answer to this question. It can take anywhere from a few months to several years to improve your credit score. This will depend on factors including frequently moving house and regular loan defaults. That said, sensible financial behaviour can boost your credit score over time, improving your finance eligibility.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Understanding How Far Back Lenders Look into Your Credit History

Tips for Car Finance Recovery After a CCJ

How to Strengthen Your Eligibility for Car Finance

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

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!

or call 01246 458 810

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Can I get car finance without a credit check? (a complete guide)

Man using phone to check for car finance without credit check

If you want to apply for car finance but suspect you may have a poor credit profile, or no credit history at all, you may be wondering “Can I get car finance without a credit check?”. You may be surprised to know that all regulated lenders perform credit and affordability checks as part of their commitment to responsible lending. However, this shouldn't put you off applying. There are plenty of car finance packages for those with less than perfect credit history. It is also possible to check your car finance eligibility using soft search.

No credit check car finance

If you have bad credit or even no credit, you may be searching for car finance options where you will not get a credit check. The reality is that all lenders will want to check your credit history before they loan you money.

Anyone searching for no credit check car finance will be disappointed. However, this is nothing to be worried about and there may still be options for financing a reliable car or brand-new vehicle.

Why do lenders do a credit check?

When you apply for car finance, lenders do credit checks as part of the application process to understand your financial behaviour and assess your history of handling your finances. They will be assessing your ‘creditworthiness’, or your suitability to receive financial credit. This is often based on how reliable you have been at paying back money in the past – your credit history.

Finance lenders have an obligation to lend money responsibly. It can be frustrating knowing that your finances and credit score will be scrutinised. However, this ensures that you are not lent more money than you can afford (called ‘affordability’). It also confirms that the car finance product you are sold is suitable for your circumstances.

Whilst there are some payday lenders who will offer finance without a credit check, you will be charged enormous rates of interest to accommodate the increased risk of lending. This is likely to be unaffordable for larger loans, such as buying a new or even used car.

By having a credit check done, this makes sure you are offered the correct rate of interest for your financial situation, rather than over-paying for a car finance deal.

Soft search versus hard search

When shopping around for car finance, customers can be concerned about damaging their credit scoring through multiple hard searches.

To avoid this happening, and to make it easier for you to shop around, we only do a soft credit check when you first apply. This allows us to do preliminary background checks to establish your eligibility for car finance.

The important thing about a soft credit check is that it doesn’t show on your credit file. The result is that they don’t impact on your credit score, nor do they affect your future chance of securing credit. You can have as many soft searches as you like, and only you can see them on your report. So, in some ways, this can be seen as no credit check car finance – although a hard search is required further down the line.

After a soft check, a hard search happens when you have confirmed that you are eligible for car finance and are happy to proceed with your application.

Be aware that a hard credit check will show on your credit file. It is worth bearing in mind that too many hard credit checks over a short period of time can affect your future ability to secure car finance – or any other type of finance for that matter. The reason for this is that they tell lenders about credit applications, and therefore may be a higher risk.

One of the great things about using soft search first is that you can establish your eligibility for car finance before you move ahead with a full search. When you then go on to secure car finance, so long as you keep up your repayments, you may actually improve your credit rating. You can even repair your credit file if it is damaged!

When you apply for credit or a loan, the lender will perform a credit check (sometimes called a credit search). This means that they can look at the financial information held on your credit report.

A credit check will show information such as:

Your name and date of birth.
Your current and previous addresses.
Whether you are on the electoral register.
Your credit accounts, including bank and credit card accounts, outstanding loan agreements or utility company debts. Late or default payments will show and stay on your credit report for at least six years.
Financial associations. These are people you are financially linked with through joint credit.
Public record information. This only covers bankruptcy, since civil judgments and tax liens were removed from any credit check in 2018.
County Court Judgments (CCJs), bankruptcies and individual voluntary arrangements (IVAs). These stay on your report for at least six years.
Banks and building societies. Only your overdraft is shown, not your bank statements, balances or savings.
Any convictions of fraud, or if someone has stolen your identity and committed fraud.

Details such as salary, religion, or criminal convictions (other than fraud) are not included.

How can I check my credit score?

You may want to check your credit history before you start applying for car finance. When checking your credit score, you won’t leave a mark on your file and it can help you understand what lenders will see.

Checking your credit history is also a great opportunity to improve your credit score by ensuring that all information held on you is correct and up to date. For example, ensuring that out-of-date financial associations don’t have a negative impact on your credit score.

Your credit score is an indication of the health of your credit file and is usually scored out of 1000. The higher the score, the better your credit rating.

There are three main credit reference agencies in the UK – Equifax, Experian, and Transunion (formally Call Credit). They hold financial information on you and are governed by the Information Commissioner’s Office or ICO.

Websites like Experian allow you to access your credit score for free.

Who will finance a car with a bad credit file?

My Car Credit has over 30 lenders on its panel and so the chances of getting you an acceptance are increased (although cannot promise guaranteed car finance). However, even people with really bad credit can get car finance, so don’t lose hope!

We have lenders that specialise in car loans for customers with damaged or poor credit. Where we match you with a lender, you will usually have to pay a higher interest rate, as you represent an increased risk for the lender. Of course, you can pay off your loan faster if you wish, and this can help to repair your credit file.

It can be helpful if you put down as large a deposit as you can afford and keep the repayment term shorter. However, it’s important not to overstretch yourself on your monthly payments.

Using a Guarantor Loan to finance a car

You may find a Guarantor Loan to be a suitable option. This is a loan where a third party that you trust (usually a family member or close friend) guarantees to make the repayments on a car loan if you fail to. Do bear in mind that you do remain responsible for the car finance agreement.

Please be aware that if you fail to make the repayments, your guarantor will become liable. If your guarantor fails to make the payments, you could both be issued with CCJs, which would affect both your abilities to obtain credit in the future.

Whilst Guarantor Loans are a great way for someone with impaired credit to get car finance, they should not be taken lightly as they come with great responsibility. You can watch a video and read more about Guarantor Loans for car finance.

How can I improve my credit score?

Another option if you have a bad credit history is to work to improve your credit score over time. The good thing about poor credit history is that it isn’t permanent. While the most scrupulous lenders might check further back for poor credit history, most details about missed payments and even court judgements won’t affect your credit status after six years.

This won’t help for car finance in the here and now, but it will make any future car finance application a little easier. Not least because you’ll be less worried about a credit check. The good news is that car finance is one of the ways to improve your credit score over time. That’s because you’ll be showing you can pay back a car loan with regular monthly payments.

Here are some other steps you can take:

Join the electoral register

If you haven’t already, you should ensure your details are on the electoral roll. Why? It’s a simple way for many lenders to check your identity and address as part of a credit check.

Check details are correct

You could also improve your credit rating by ensuring credit reference agencies have the right details for you. There are three main credit reference agencies in the UK – Experian, Equifax and TransUnion. They hold information such as your address history and financial history – accounts, payments, and any defaults or IVAs.

You can see all of this information on a credit report. If you find any discrepancies, you can report them to the agency in question, who will investigate and potentially update their records. Correcting these issues could improve your poor credit score.

Stay in the same home

Constantly changing addresses is a tell-tale sign of applicants with bad credit. In contrast, keeping the same address shows stability and security to a lender, which could improve your credit score.

Be smart with spending

If you’ve been refused credit, there’s no better way to move towards good credit history than spending wisely. Staying well within your credit limit will show that you’re responsible with your money, showing other lenders that you’ll be able to keep up with payments – and minimise the risk of late payment.

Pay off your debt

Even soft credit checks will show if you have outstanding debt. This is a big red flag for most lenders and car finance companies because it shows that your current financial situation is unsustainable. As well as spending less, try to improve your current circumstances by paying off outstanding debts. This could take you one step closer to a new car in future.

Here to help

With no credit check, car finance can’t be processed. But hopefully, we’ve shown you that credit checks are nothing to be worried about. It is more than possible to check your eligibility for car finance before you have a hard credit check. What’s more, credit checks simply ensure that lenders loan you the right amount, at the right interest rate for your circumstances.

Whilst there is no such thing as ‘no credit check car finance’, we hope we’ve helped you feel more confident about applying for car finance to buy your next car!

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Why Use a Car Finance Broker?

What is a Good Credit Score for Car Financing?

What is a Car Finance Soft Search? – All Your FAQs Answered

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

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!

or call 01246 458 810

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Can I Get Car Finance With a CCJ?

If you have a CCJ and you’re trying to get car finance, you’ll already know that it’s quite a difficult task. You might be wondering if it’s even possible to get car finance with a CCJ. Understanding how your CCJ affects your application could improve your chances of finding a car finance deal.

What is a CCJ?

A CCJ is a County Court Judgement that is brought against you if you fail to respond to repayments. You receive a CCJ if your debtors (i.e. the people or organisation you owe money to) have issued you a written warning stating the amount you owe and that they will take legal action in the case that it isn’t paid. CCJs are kept on your record for six years, even after you have paid the amount back.

How does a CCJ affect car finance?

Having a CCJ can make it very difficult to get a car finance agreement. Car finance lenders need reassurance that you will make your repayments and a CCJ makes this less of a certainty. However, your personal circumstances can determine how much your CCJ affects your chances of getting your car finance. In other words: the amount you owed, how much you’ve repaid and how long it’s been since your CCJ all make a difference to the way it’s viewed by a lender.

How can I get car finance with a CCJ?

Whilst you can get car finance with a CCJ as an individual, you could also consider finding a guarantor to be part of your application. Having a second party that is financially responsible alongside yourself can improve your chances of being approved. It is important that both you and your guarantor understand that this approach is a big responsibility. Whilst a guarantor car loan is a viable option, it shouldn’t be taken lightly. Read more about Guarantor Car Finance.

My Car Credit looks at every applicant as an individual. We have a wide panel of lenders who are happy to consider people of all credit ratings and histories. You can conduct a soft search into your credit search, which will let you know where you stand without leaving a mark on your credit report.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

How to Finance a Car with Poor Credit

How to Get an Excellent Credit Score

Car Loan Early Repayment – Is It Worth It?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

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!

or call 01246 458 810

bad credit CCJ County Court Judgement guarantor

What Are the Different Credit Score Ranges?

Your credit score acts as a tool for lenders to know how risky it might be to lend money to you. To understand what your credit score means you need to know which credit score range it falls into.

What are the different credit score ranges?

All credit scores are split into a series of ranges which act as a rough indication of how well you are viewed by finance lenders. Essentially, the higher your credit score is, the more trustworthy you are in the eyes of the lender. This means that you’re likely to be accepted for loans and receive better interest rates. Credit scores run from 0 to 999 and are split into several ranges in between.

Here’s a full breakdown of the Experian credit score range and what it means:

Excellent (961-999) – Will be accepted for loans and receive the best interest rates.
Good (881-960) – Almost certain to be accepted for loans and receive good interest rates.
Fair (721-880) – More than likely to be accepted for loans and receive fair interest rates.
Poor (561-720) – Could be accepted for loans and receive higher interest rates.
Very Poor (0-560) – Less likely to be accepted for loans and likely to receive high interest rates.

What do these credit score ranges mean?

Understanding your credit score without knowing which range it falls into is like trying to understand a word without its context – the meaning of one relies on the other. What is also important is where your credit score sits in this range. For example, a credit score of 881 sits in the ‘good’ range on most credit score ratings. This would tend to indicate that you have a good chance of being accepted for loans and receiving competitive interest rates. However, 881 is on the cusp between the ‘good’ and ‘fair’ range. So, whilst you have a ‘good’ credit score, you’re not as financially secure enough to receive the rates that someone in the middle of that range would receive.

Here to help, whatever your credit score

At My Car Credit, we are happy to talk to you whatever your credit score. What’s more, we’ll try our best to get you the right car finance deal for your circumstances, including poor credit car loans.

For more information around improving your credit score, check out our blogs.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Understanding How Far Back Lenders Look into Your Credit History

Tips for Car Finance Recovery After a CCJ

How to Strengthen Your Eligibility for Car Finance

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

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!

or call 01246 458 810

bad credit credit reference agencies credit score excellent credit score good credit score poor credit

You don’t need an ‘excellent’ credit rating to take advantage of car finance payment plans. If you have a lacklustre score and want to know more about how to finance a car with poor credit, we have answers.

Step 1: Find your credit score

Step 2: Crunch your numbers

Step 3: Secure a lender

Rates from 9.9% APR. Representative APR 10.9%

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The need for a gold-standard credit rating to lease a car is one of the biggest misconceptions in the auto industry. If you’re wondering “can you lease a car with poor credit” this article is for you.

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Rates from 9.9% APR. Representative APR 10.9%

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Buying a car with poor credit can sometimes seem like an impossible task. Once you’ve been knocked back by your bank or other lenders, it’s easy to just give up and stick with the car you’ve got – or in some cases, no car at all.

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Rates from 9.9% APR. Representative APR 10.9%

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If you’re shopping around for a suitable car finance deal, you’ll likely come across a lot of jargon. One of the most common phrases you’ll see is a ‘credit score’. But what actually is a credit score, and what is a bad or poor credit score?

What is a credit score and why does it matter?

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Bad credit vs poor credit: what’s the difference?

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How long does it take to rebuild from bad to good credit?

Rates from 9.9% APR. Representative APR 10.9%

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Rates from 9.9% APR. Representative APR 10.9%

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