Is there such a thing as guaranteed car finance?

Man signs agreement for buying car on finance

Put simply – no. Just as there are no guarantees in life, there are no guarantees in car finance. As such, we would advise you to be very wary of any company that suggests they can guarantee car finance to you. At My Car Credit, we don’t offer any guarantees. However, we always do our absolute best to get you accepted for car finance, so you can buy the car that you want.

The truth about ‘guaranteed car finance’

The reality is that the ‘guaranteed car finance’ claim is often a marketing ploy. The goal is to make you think that you’ll definitely be able to get a loan regardless of your circumstances.

Guaranteed car finance simply doesn’t exist. In fact, there have been laws in place since 2010 which state that making a false or misleading claim around finance guarantees for consumer credit is an offence. Additionally, advertisements that contain just the phrase ‘loan guaranteed’ are also banned. The advert would need to include terms and conditions regarding the individual’s credit status to be allowed. 

‘Guaranteed finance’ schemes

Watch out for ‘guaranteed finance’ schemes which are designed to catch you out. A common scheme is to ask for a ‘guaranteed finance enquiry’ fee. Usually this fee and the offer it is meant to guarantee are closely attached to complex small print (i.e. legal jargon). In order to decipher it, you’d need to be a qualified lawyer!

Any finance lender suspected of dealing with customers in this way can end up with a full Financial Conduct Authority (FCA) investigation into their conduct. If upheld, this could lead to them being fined or forced to close.

In summary – almost every guaranteed car finance claim is a scam.

How car finance agreements really work

Car finance agreements are purely based on your individual circumstances and your credit profile. This means that there will inevitably be some individuals who aren’t eligible for car finance. We’ll go out of our way to help you get approved for car finance.  However, it’s our lenders that make the final decision after fully assessing your affordability and credit profile.

A credit profile is a document that contains information regarding your creditworthiness and credit history. Your credit profile includes: what types of credit you hold, the length of time your credit accounts have been open for, if you made your repayments on time, and any applications for new credit. Lenders are far less likely to lend you money if they are not convinced you can repay them. This would naturally be bad business for them. In addition, it is not ethical for them to lend money that could push you into financial difficulties.

A more ethical solution to car finance

At My Car Credit, we only carry out a ‘soft search’ when you first apply with us. This means that there will be no footprint or indication on your credit file that a search has been carried out. Once you have made an application with us and a ‘soft search’ has been performed, we’ll know if you’ll get accepted by one of our lenders on our extensive panel.

The benefit of this approach means that should you unfortunately get declined, your credit profile will not be affected.

How to get accepted for car finance

Whilst we cannot guarantee car finance, there are ways you can improve your chances of getting accepted for car finance.

  • Improve and maintain your credit score
    Your credit score is the main factor that is assessed when you apply for a car loan. This means it’s important you keep your score as high as possible. There are many things you can do to improve your credit score. Not only will a good credit score improve your chance of an acceptance but you will also get a better rate. However, don’t lose heart if you have a low credit sore as there are still plenty of options.

  • Put down a deposit on your car loan
    Paying an upfront deposit on your car loan makes you less of a risk to the lender. Not only is the amount owed on the vehicle reduced but your monthly payments will also come down. Once again, don’t despair if you can’t pay a deposit. There are plenty of no deposit car finance options available!

  • Opt for a Guarantor Loan
    A Guarantor Loan is where a third party (usually a family member or close friend) agrees to pay your loan if you are unable to. This lowers the risk for the lender, improving your chances of an acceptance. It can also lower the rate you are offered. Guarantor Loans are a big responsibility for both parties and shouldn’t be entered into lightly. Make sure you are clear on how a Guarantor Loan works before proceeding.

What we can offer

My Car Credit has access to a large panel of lenders. These have all been vetted and approved by the FCA for their trustworthy operations and the quality of their service.

Our large network of lenders increases the chances of you getting accepted, across all credit profiles (from poor to excellent). Our unique underwriting policy prioritises the best outcome for you, the customer. This ensures we give you the best available deal on car finance for your circumstances.

You can trust My Car Credit because we are part of Evolution Funding, the UK’s largest motor finance broker. We are proud to be award-winning market leaders in the industry. We have helped thousands of customers get the car they want; at the price they can afford. We are also regulated and monitored by the Financial Conduct Authority (FCA). In conclusion, you can borrow for your next car safe in the knowledge that we are professional and reputable.

If you have any questions, our Car Credit specialists are here to help. Finally, you can get an instant decision, that won’t affect your credit file, by applying today.

Rates from 6.9% APR. Representative APR 13.9%

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 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

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.

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!

What is a Guarantor Loan?

Man hugging his dad after securing a guarantor loan

At My Car Credit, we understand that affording a car can be a challenge. A Guarantor Loan, where a third party agrees to pay your loan if you can’t make repayments, provides an alternative method of taking out car finance. A Guarantor Loan is a big responsibility so it’s important you understand everything that’s involved in taking one out. Here’s everything you need to know about applying for a Guarantor Loan.

How it works

A Guarantor Loan is the same as a normal loan and you are still responsible for making the agreed repayments. However, it also allows for a third party (normally a family member) to guarantee your lender the repayments (in case you fail to make them).

Picking a guarantor

Your guarantor can be anybody between the ages of 18 and 75 with a regular income – they don’t necessarily have to be a homeowner, but this would greatly increase your chances of being accepted. Due to the nature of a Guarantor Loan, it’s a good idea to make sure that your guarantor is somebody who trusts you to make the repayments, as well as somebody that you have a good relationship with. Being a Guarantor is a big responsibility – in the eventuality that you cannot meet your repayments, your Guarantor would be liable for the debt instead. Most people tend to ask a member of their family or a very close friend.

What they’ll need to provide us

Your guarantors will have to go through the same checks and processes as you – they will need to provide their employment and financial history (i.e. income, bank statements, bank details), their proof of ID, and potentially other documents, dependent on the lender’s criteria. This is a standard procedure to reassure the finance lender that your guarantor is a suitable choice.

Once you and your guarantor have been accepted and all the boxes have been ticked, most Guarantor Loans are paid out to you within 48 hours.

Additional advantages

The security of a Guarantor Loan for the lender means that you may be offered a lower annual percentage rate (APR) than you could obtain elsewhere. An APR is the money you have to pay in interest for borrowing money from a lender.

A Guarantor Loan means that you can build and improve your own credit score for the future, because (in theory) you should always make the monthly payments. This means that your chances of being approved for finance will be improving as you go along.

Choosing to take a Guarantor Loan can make it more likely for you to be accepted for car finance. Put simply, this is because having a guarantor makes you a much safer bet for a lender. It gives them a reliable back-up option that they can approach for payments.

What happens if you fail to make the repayments?

Failure to make your monthly repayments will mean that your Guarantor will be liable instead. They will be expected to make the monthly repayments on your behalf. Should they also fail to make the repayments, both of you could be issued with a County Court Judgement (CCJ). This will impact both your credit profiles, as well as affect your abilities to obtain credit in the future.

A Guarantor Loan can be a good solution for certain circumstances but it’s important to remember your obligations to both your Guarantor and the lender.

Ready to take the next step?

If you feel that a Guarantor Loan is the best option for you, why not call one of our Guarantor Loan specialists at My Car Credit – they will be more than happy to help you through the quick and easy process. Or click and apply here with My Car Credit to see if you are eligible.

Rates from 6.9% APR. Representative APR 13.9%

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 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.24, total amount payable is £9,676.24.

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.

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!