Find out how to secure car finance even with a poor credit score
If you have a bad credit history and wish to apply for car finance, then there are a few things you need to know first. Find out what makes you eligible for vehicle finance with a poor credit score by reading our helpful guide…
What is bad credit car finance?
Bad credit - or poor credit - car finance is aimed at borrowers who do not have a very good credit history and may otherwise struggle to gain finance for their new or used vehicle. Specialist lenders provide this type of finance to people, but it’s worth understanding exactly what is involved before you apply:
How does bad credit car finance work?
Car finance for borrowers with bad credit is possible to achieve, but it’s important to understand at this point that it isn’t necessarily advertised. This is why it’s helpful to reach out to brokers like ourselves here at Octane Finance, who already have relationships with lenders that are able to support those with poor credit histories.
Can you get car finance with bad credit?
The application process for car finance with bad credit is much the same as if you have a good credit score, except the lender will already know you have a poor credit history. This doesn’t mean you won’t be accepted for finance, but that it may be more difficult to obtain, the interest rates offered to you are higher, or you may be advised that a guarantor is needed instead.
What are the pros and cons of applying for bad credit car finance?
Before you apply for car finance with a poor credit history, it’s important to weigh up the pros and cons of doing so:
| What are the pros of bad credit car finance? | What are the cons of bad credit car finance? |
| Enables you to purchase a vehicle | It is harder to get approved |
| You can ask someone to be a guarantor | You may need to pay more upfront |
| Work with a broker who can put you in touch with specialist lenders | You may be restricted to borrowing a smaller amount |
What details do I need to provide for bad credit car finance?
To apply for car finance if you have bad credit will require you to share both personal and financial information. Here is a list of some of the details you could be expected to submit:
- Your full name, date of birth, and marital status
- A copy of your driving licence
- Your current address and proof of residence via utility bills
- Employer’s name and address as well as job title and salary (previous employment details may also be required)
- Payslips or bank statements for proof of income (likely to be from the last three months)
- Self-employed individuals or sole traders will need to provide proof of accounts
- Details of any outstanding credit cards or loan agreements
Bad credit vehicle finance deals at your fingertips
We have the skills and knowledge needed to assist your finance application if you have bad credit, and can put you in touch with lenders who specialise in supporting borrowers with poor credit histories.
As a broker working with lenders all over the UK, we cover all bases; from uber prime through to near prime, subprime, and specialist subprime depending on your needs. Our expert team will do the hard work for you and hunt around for the best offers to accelerate your chances of being approved.
Rates start from 9.9%, representative APR 12.9%, but please note that the APR you qualify for is based on your personal credit status. Speak with us to find out more.
Frequently asked questions
Here are some of the most frequently asked questions about Bad Credit
- My Credit History isn't great - can you help me if I have bad credit?
Yes, there is a good chance we can help you. Octane Finance is set up to serve the entire market. We know that sometimes life events can affect your credit score - often through no fault of your own. This is why we have a full set of near prime, subprime and even specialist sub-prime lenders on board - to get you the best finance, at the best rate.
- What if I am in an Individual Voluntary Arrangement (IVA)?
Being in an IVA does not necessarily exclude you from getting car finance. Even if you have a poor or bad credit history, some lenders prefer it if your finances are managed. These are lenders that specialise in bad credit finance. You will need to get a signed letter from your IVA practitioner agreeing to the commitment and your Octane Finance Account Manager will help you with the details for your IVA company/ practitioner to consider.
- Can I get car finance if I have a County Court Judgement (CCJ)?
Yes. Many of our lenders understand that customers may have received a CCJ or a few CCJ's over time. For a lender that specialises in bad credit car finance this is quite acceptable ( provided there a less than a certain number depending on lender). We help numerous customers acquire cars with CCJ's on their file.
- What can I do if I have been refused for bad credit elsewhere?
There are many reasons why you could have been refused car finance from having a "thin" credit file (not applied for credit before or little history of obtaining credit) or through an adverse credit history which is likely to have increased the perceived risk of lending to you. No need to give up though as very few brokers have as many lenders as we do. We often speak with clients who have been rejected at a car dealer only to get a number of approvals at great rates from our panel of lenders.
- How can I gauge what my monthly car finance payments will be?
Please use our free car finance calculator which you can find above in order to see what your monthly payments will work out to.If you have poor credit then it is often best to put this into the HP calculator to get a realistic estimation of your monthly payments. If you want a specific and accurate number to the penny then please apply for car finance - becasue we have a huge panel, you know that your rate is likely to be the best in the market.