In the latest edition of our FAQ series, we answer one of the most common questions from Creditplus customers

Welcome to Creditplus Answers, a series where the car finance experts at Creditplus answer all the questions you have about the finance process. As a company, we’re committed to making the car finance journey for our customers as simple, honest and transparent as possible.

In today’s blog, we answer one of the most common questions asked by our customers: “Can I get car finance if I have a bad credit rating?”

The question: Car finance with bad credit

Applying for car finance can often be one of the first times you encounter the world of credit ratings and how it can affect your financial options. While you may be aware that you have borrowed money in the past and that your finances are not in the best condition, you may not realise you have a bad credit rating until the time comes to apply for your next finance package.

A bad credit rating can feel like the worst thing ever – that you will never be able to borrow money ever again. That’s especially the case for car finance, where you might not be able to get any of the best deals advertised by the main agent dealers.

However, having a bad credit rating doesn’t have to stop you from qualifying for a car finance package. Instead, you just have to be aware of a few major details before you proceed to ensure you find a package that is affordable and won’t leave you in a worse financial condition than when you started.

Creditplus answers

Despite what you might think, car finance is available if you have a bad credit rating. There are many specialist providers that Creditplus work with that may be able to offer you a finance package, even if you have an adverse credit history or are taking steps to improve your credit circumstances.

There are two things you need to be aware of when applying for bad credit finance: First, that some finance products, such as Personal Contract Purchase, will not be available to you. Secondly, that the interest rate you will be charged will be higher than those commonly advertised by big finance providers and main agent dealerships.

So what can you do? The key thing about bad credit car finance is to know how much you can afford to spend per month on a finance package. That will affect not only the amount of money you can borrow, but also the duration of your finance package and the interest charged.

You will also need to weigh up the pros and cons of getting a bad credit car finance package. You will be paying more for the package overall, but you may save money in the long run by driving a newer, more reliable, more fuel efficient car. You may also be able to get a better job or one further away if the car you have is more comfortable to drive for longer. It’s all about weighing up the different options.

Your Creditplus customer advisor will talk through all your options when you apply, and will never pressure you into a package that you are not comfortable with. The final decision will always be yours and yours alone.

What do you need to be eligible?

To be eligible for bad credit car finance is the same as any type of finance package. What you will need is:

• Proof of identity
• Proof of address
• Proof of income
• A full driver’s licence

We won’t ask questions about how or why you have a bad credit rating. Our only questions will be to ensure you can afford the payments on the package. So there’s no need to be embarrassed or ashamed about your financial circumstances. We understand that everyone is different.

Thanks for reading our Creditplus Answers blog. Find out more about bad credit car finance over on our main website, or work out how much you could borrow using our car finance calculator.

About the author

Becki has been with Creditplus for over fifteen years and leads the pay outs team at the company. She has helped thousands of happy customers to be approved for the finance they need for their dream car and is an expert on consumer car finance.