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.