How to Get Car Finance with Poor Credit

Young lady looking happily at her phone due to getting car finance with poor credit

Between July 2018 and June 2019, 9 out of every 10 cars sold in the UK were paid through some sort of car finance. With that in mind, it’s clear that finance has become the most popular way to buy a car. However, many people are still unsure about their eligibility. Can you get car finance with poor credit, for instance?

In this post, we’ll explore how car finance works and how to get car finance with a poor credit score.

What exactly is car finance?

The FLA defines car finance as a plan that spreads the cost of a new or used car. Instead of paying the full amount for the car upfront, consumers can pay monthly towards the overall cost of their purchased car.

In the UK, it is common for car dealerships to offer finance options to their customers. Alternatively, you can get finance through dedicated finance brokers, who will offer a wide range of financial deals to their customers via a panel of lenders. This allows them to find the best available deals to suit each individual customer.

What impacts whether I am eligible for car finance?

Many factors can impact your eligibility for car finance:

  1. Age – To take out a car finance plan, you must be aged 18 to 75 years’ old.
  2. Residency – You need to be a resident in the UK for at least three or more years. Most companies will not take on temporary residents.
  3. Credit score – For most lenders, this is a big one. The better your credit score, the more likely you are to get approved.
  4. The car you want to take a finance plan out on – The car needs to be less than 8 years old when you first take out the finance plan, and it must be less than 12 years old when the finance plan ends.
  5. Employment – Being able to prove you are in stable employment will be favourable for most lenders. Normally, they ask for your previous three months’ bank statements and payslips to prove this.
  6. Benefits – Most lenders will require at least half your benefits to be income based. Benefits that would count as a form of income are Carers’ Allowance, Local Council Tax Support, Disability Living Allowance, Incapacity Benefit (long term incapacity), Tax Credits, Pension Credit, and State Retirement Pension. For any other disability benefits, lenders are more flexible due to the nature of the benefit and will often accept government-funded allowance.
  7. Retirement – Despite being out of employment, many retired applicants will be in a good financial position. They would still be required to have proof of their income, whether that be from a pension, investment or property.

How credit affects car finance eligibility

A credit score is a numerical expression, which represents the creditworthiness of an individual. It represents someone’s credit history and tells lenders a lot about what kind of borrower they are and how likely it is that they will manage repayments.

When you apply for car finance, your credit score will be looked at by your lender. People with a higher credit score are more likely to be successful when applying for car finance, and sometimes they can even get better interest rates. This is because they are considered as ‘lower risk’ when compared to others with a higher credit score.

Lenders will use your credit score to tailor a car finance plan to you. If you have a higher credit score, lenders can often approve your car finance quicker and offer you lower interest rates.

Can I get car finance with poor credit?

Many dealerships prefer to only offer car finance plans to good or excellent credit scores, which is not good news if your credit score is not particularly great. The lower your credit score, the more hoops they will make you jump through.

While poor credit can make some finance applications tricky, it doesn’t mean you can’t get credit full stop. At My Car Credit, we are committed to finding a finance package that suits you, wherever possible. With the largest panel of lenders out of any other UK broker, we are better placed to get you approved for car finance with a poor credit score compared to other brokers.

Our clever technology allows us to use data-driven decisions to place you with the best lender. We also have a team of manual underwriters who can assess each customer’s individual circumstances to ensure we always give you the best deal on car finance available from our lenders.

Our simple-to-use car finance calculator allows you to see if you will be eligible for car finance with poor credit. Taking your credit score into account, you can get a clear idea of the finance on offer, changing the loan amount and repayment term to suit you.

Where can I go to get car finance with poor credit?

If you’re looking to get car finance with poor credit, My Car Credit can help. Simply enter your credit score, loan amount and repayment terms on our simple car finance calculator and let us do all the legwork.

We’re fully FCA compliant, meaning our customers know exactly what they are getting from us. If you want to find out more about the car finance we can offer you with poor credit, get in touch with our team today. You can call us on 01246 458 810 or email enquiries@mycarcredit.co.uk.

Representative APR 23.9%

Evolution Funding Ltd T/A My Car Credit
My Credit Rating

Excellent

  • 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

Good

  • 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

Fair

  • 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

Poor

  • 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

Bad

  • 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
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 23.9%, annual interest rate (fixed) 23.88%, 47 monthly payments of £234.69 followed by 1 payment of £244.69 (incl. estimated £10 option to purchase fee), total cost of credit is £3,775.12, total amount payable is £11,275.12.

My Car Credit is a credit broker and not a lender.

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!

How Much Does Car Finance Cost? Check Now!

Calculator on desk used to work out how much car finance costs

Picturing yourself behind the steering wheel of that new car? Then it’s time to look at car financing options. But with your finger hanging over the button to submit your online application, there is usually one question burning in the back of your mind... How much will it cost me to finance my car?

While costs and rates can vary from person to person, depending on their circumstances, My Car Credit aims to keep things simple.

Read on to see how we do our calculations and make every effort to get you the best car finance deal available from our large panel of lenders.

1.    APR Calculator

First off, to get a rough idea of the finance charges on a new car loan, try out our online car finance calculator. By entering the relevant details, you will get an indication of the Annual Percentage Rate (APR) and have an overall view of all the costs involved, including the cost of monthly payments. Nothing is set in stone, with zero obligation on your end. But now that you have an estimate to work with, you can send in your application and let us do all the hard work for you.

2.    Our Process

Once your application has been submitted, we first make sure we have everything we need. After the compliance phase, we look at suitability, eligibility, affordability and vulnerability by means of an aggregator.

This one-of-a-kind decision-making system aims to find our customers the best possible deal without affecting their credit rating or even slowing down their application. By automating and streamlining this part of the process we can provide consistent, compliant and auditable decisions for our clients, without adding any additional costs.

With comprehensive car finance offerings (from poor credit right through to excellent credit) and loads of experience backing our efforts, we are primarily concerned with making this testing part of the car buying journey a faster, hassle-free and more enjoyable experience. The last thing we want is for you to be plagued by unnecessary delays, costs or extra paperwork.

3.    Car finance options

As part of Evolution Funding, we have access to a large pool of car loan companies. This means we can submit to more than 34 finance lenders at the same time and hunt down the sweetest deal for every individual, no matter how unique their circumstances.

With all these means at our disposal, we are better placed to find you the package that best suits your means than any other car finance broker.

4.    Communication

We know how frustrating it can be to be in the dark. There is nothing worse than a lack of communication. That’s why we stay in touch and give updated feedback every step of the way, keeping you informed of how your application is progressing and what options are available to you. Our aim is to provide unequalled communication to our customers.

Find out how much a car loan costs

If you want to find out how much car finance costs, it couldn’t be simpler with My Car Credit. Click apply now, fill in your details and get a clear estimate for the cost of your car finance. It’s that easy.

Representative APR 23.9%

Evolution Funding Ltd T/A My Car Credit
My Credit Rating

Excellent

  • 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

Good

  • 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

Fair

  • 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

Poor

  • 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

Bad

  • 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
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 23.9%, annual interest rate (fixed) 23.88%, 47 monthly payments of £234.69 followed by 1 payment of £244.69 (incl. estimated £10 option to purchase fee), total cost of credit is £3,775.12, total amount payable is £11,275.12.

My Car Credit is a credit broker and not a lender.

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!

How Long Does Car Finance Approval Take?

checking how long car finance takes using apple watch

Your dream car is beaming on the screen in front of you. It has your name written all over it. Now that you’ve made the decision to buy your new car, the next thing you need is car finance. But how long does car finance approval take?

Read on to find out which factors affect how long it takes for a car finance application to be approval – and what you can do to speed things up.

Times are changing

Car finance approval has something of a reputation for being long and drawn out. That’s mostly down to the old-fashioned approach to car finance. Traditionally, you’d need stacks of paperwork, lengthy credit checks, back-and-forth communication and multiple submissions to financial institutions.

Nowadays, thanks to digital advances, car finance approval has become much easier and quicker. Buying a car and applying for credit online is as simple as clicking here and there, completing the online questionnaire and tapping on the final prompt to send the application.

That said, there are some ways you can make it quicker…

How can I get car finance approved faster?

While it’s difficult to estimate how long car finance takes to process or how many days are required to get your car loan approved, it’s helpful to know how you can speed things up from your side.

1. Budget

Whether you shop for your car first or wish to apply for car finance first, you still need to have an idea of what you can afford in terms of repayments. Use a car finance calculator to provide you with some rough calculations before you set off. Enter the loan amount, repayment period and try to get your bearings before you complete the application.

2. Credit rating

While we aim to help drivers with any credit rating, some small improvements can go a long way. Cancel out-of-date credit cards and complete the application as truthfully as you can. Check if your credit profile is linked to someone else or if there is any missing information on your credit report.

3. Documents

Online applications are much easier and faster than the old-fashioned way. But you’ll still need a few key documents along the way, including your driving licence, bank statements and proof of employment and earnings.

To save yourself time, try to get those documents ready before you apply for car finance. Scan them onto your computer and keep the physical copy on hand just in case.

Quick, hassle-free car finance approval

My Car Credit has taken every measure to eliminate the hassles of car finance approval and streamline the process for you. With more than 34 trusted car loan companies at our disposal, you can rest assured that we’ll be hunting for the best possible car finance deal available from our large panel of lenders.

Use our car finance calculator now to check how much you can borrow.

Representative APR 23.9%

My Credit Rating

Excellent

  • 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

Good

  • 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

Fair

  • 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

Poor

  • 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

Bad

  • 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
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 23.9%, annual interest rate (fixed) 23.88%, 47 monthly payments of £234.69 followed by 1 payment of £244.69 (incl. estimated £10 option to purchase fee), total cost of credit is £3,775.12, total amount payable is £11,275.12.

My Car Credit is a credit broker and not a lender.

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!

Introducing the New & Improved My Car Credit Website

man holding mobile phone showing new car finance website my car credit

At My Car Credit, we’re dedicated to making car finance easier for you. In today’s digital world, that means having a website that’s fast, easy to use and packed full of handy guides and resources.

That’s why we’re delighted to introduce our new website, which has a range of improved features for our customers.

Lightning fast!

Let’s face it, slow websites are a pain in the neck – whether you’re searching for holidays or shopping for clothes. First and foremost, we’ve made sure our site’s performance is up to scratch with simple navigation and quick loading times, so you don’t have to wait around to get the best finance quotes.

Car finance calculator

Our new site also boasts an innovative car finance calculator which is quick and easy to use. Simply enter the loan amount and repayment term along with an estimate of your credit rating to get a finance deal tailored to you – with no impact on your credit score.

Help & advice

With all the paperwork and credit scores, it’s fair to say car finance can be overwhelming. Fortunately, our new website has a dedicated Help & Advice section to provide answers to all your questions. Browse by category or search for your specific query to find all the information you could ever need.

Helpful explainers

Sometimes, you don’t want to read page after page. Especially when things are a bit more complex. That’s why we’ve included a selection of explainer videos that outline things like how car credit works, to ensure you can make an informed decision.

FCA compliance

Above all else, we’ve put FCA compliance at the top of our list when building our new site. You can rest assured we’ll be completely clear with you every step of the way, with no hard-selling or hidden costs.

Put us to the test!

The best way to try out a car is with a test drive. That’s no different with our new site. Try our quick and easy car finance calculator today to get the best quote for your car finance.

 

Rates from 6.9% APR. Representative APR 23.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • 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

Good

  • 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

Fair

  • 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

Poor

  • 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

Bad

  • 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
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 23.9%, annual interest rate (fixed) 23.88%, 47 monthly payments of £234.69 followed by 1 payment of £244.69 (incl. estimated £10 option to purchase fee), total cost of credit is £3,775.12, total amount payable is £11,275.12.

My Car Credit is a credit broker and not a lender.

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!