Bad Credit Car Finance

At Creditplus we have a specialist panel of lenders for individuals with bad credit which means there is a good chance we will be able to help you secure a suitable finance package.

If you have bad credit, you can see whether you are eligible for car finance by following the 3 simple steps below.

1 - Compare your loans options

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Creditplus compare more than 90 lending options to find the right car finance package for your credit circumstances. We have specialist lenders for those with adverse credit on file, so even if you have a bad credit score, we can find a finance package for you.

Apply now and one of our experienced customer advisors will contact you to discuss your options. This will not affect your credit score.


2 - Choose your car

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If a suitable loan option has been found, then it's time to choose your car.

Creditplus have a wide network of dealers to source your car but we can also finance a car from any established UK dealer. You can either source a car yourself or ask us to do it for you. If you have already found a car that's great! We can simply arrange the finance for you.

Alternatively, you can check out our exciting best car deals.

3 - Get final loan approval

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There’s no waiting around when you use Creditplus - our specialist software and dedicated customer advisors will give you a final decision in minutes.

Upon approval from the lender and your signed agreement, we can then arrange direct payment for your new car.

If you have opted for us to source your car then we will collect, check, valet and deliver the car to your door. For more information please visit our complete car buying service page.

Find out your options and get an instant decision now. Simply complete our simple 2-minute, no-obligation application form.

Bad Credit FAQs

Can I get car finance with a bad credit rating?

It's certainly possible to receive car finance with a bad credit score. There are a number of variables from late payments to CCJs that can contribute to a bad credit history, and affect whether or not you can obtain car finance. We discuss this in more detail below, with regards to what impacts your credit rating by highlighting the most common questions around car finance for bad credit.

I've defaulted on my loan. Will this affect my application for car finance?

If you’ve defaulted on a loan this will leave a mark on your credit history and will result in bad credit, making it harder for you to get accepted by lenders. If you’re struggling with repayments, there’s a possibility we can help you settle your loan and get you on to a new arrangement with more manageable repayments. If you would like to talk to us about this, either make an application or speak to one of our Customer Advisors.

If your debt has been turned over to a collections agency, things will get much more complicated, as you're likely to have two companies to deal with rather than just the lender. Once you're in a debt management program, it becomes very unlikely that you'll be accepted for further credit from any lender so it’s imperative that you try to avoid getting into this situation.

I'm in an IVA - will I be able to get car finance?

Most lenders will only consider your application once your IVA has ended, although this is not always the case. If you can afford to finance a vehicle whilst you’re in an IVA, you should be prepared to pay higher interest rates due to your bad credit being a high risk to lenders. Because of this, the options of products available to you will be limited, and they'll usually require a deposit to be paid as well as other potential restrictions.

I've been made bankrupt - can I still get car finance?

If you've been made bankrupt, it can be difficult to attain credit of any kind. Most lenders will look at your credit file and deem someone in bankruptcy as a very high risk, and most likely result in a rejection.

Once you've been released from bankruptcy, it can still be hard to get car finance. There are lenders who offer car finance for bad credit, but at a much higher interest rate than other lenders. They will usually require proof that you've been discharged from bankruptcy for at least 12 months, as well as a substantial deposit to offset the risk of lending to someone who is high risk. Although bankruptcy usually lasts for 12 months, it will leave a mark on your credit file for 6 years. 

I have a County Court Judgement (CCJ) on my credit file - can I obtain car finance?

Much like having been declared bankrupt or being in debt management arrangements, a CCJ will indicate to lenders that you've had problems with your credit before and have struggled or failed to repay the debt you owe - resulting in bad credit overall.

If you have no more than 5 CCJs with a combined value of under £5,000 in the last 2 years, it’s possible that you'll be accepted for finance. But if you're over this the chances are that you'll find it very hard for lenders to loan the money you need due to your bad credit. This is mainly due to the risk involved in lending to those with bad credit as it suggests you cannot afford the credit you already have.

CCJs will stay on your credit file for 6 years, however, if the debt has been repaid you can request a 'Satisfied' note be put onto the CCJ which will indicate to any future lenders that you have repaid all that you owe. It’s also possible that a lender would look more positively on an applicant with a 5-year-old CCJ than with somebody who has just been issued a judgement.

I'm in debt management - will I still be accepted for car finance?

Entering a debt management plan doesn’t necessarily mean you can’t get credit, though the reasons you’d go into such a plan would indicate that you have previously fallen into tough financial times and failed to meet obligations to pay back the debt you owe. Your lending options will therefore be incredibly limited, and your monthly repayments will be high to offset the level of risk you pose to a lender.

When you enter a debt management plan with your lender, it will be marked on your credit file and will stay on there for 6 years.

I'm in arrears with my mortgage - can I still get car finance?

Getting into arrears will certainly damage your credit score, and as such would render your ability to get finance much more difficult. If you can show that you've got your payments back on track, it's somewhat possible that we'd be able to help you with car finance. It’s worth noting that you'll likely have to pay a higher rate than those with good credit.

Can I still get a low interest rate with bad credit?

When you have a bad credit rating, you are unlikely to have the best rates available to you, particularly those advertised by the big high street lenders. This is because of the adverse credit in your history making you appear to be a risk, even if you have started taking steps to repair your file.

The good news is that you still have options available to you. Creditplus will compare more than 90 lending options when you apply and present them to you. It is then up to you to decide if you want to continue with your application. We will not pressure you into any decision.

How can I start to repair my credit file?

If you have a bad credit rating, it can feel like it’s impossible to change your circumstances. This is simply not the case and there are practical steps you can take to start repairing your file. One of your first stops should be our Credit Clinic. In this section, we’ve brought together information on all the different credit ratings, what can cause a bad credit rating, what steps you can take to start improving your file, and a list of resources you can contact if you want professional impartial advice. Visit the Credit Clinic for more information.

Is there anything we have missed? Do you have any more questions? Our Customer Advisors are always happy to answer your questions, simply give us a call on 0333 6000 290.

Useful Resources for those looking for bad credit car finance

  1. Car Finance Calculator – Want to know how much your car finance package could cost? Use our online calculator to get an idea of what your bad credit car loan could cost.
  2. Car Finance Options – Unsure of which finance option is right for you? Use our car finance options tool to find out which product is suitable for you, based on a simple, short 30 second questionnaire.
  3. Credit Clinic – looking for more information on credit ratings and how to improve them? Visit our Credit Clinic for insight into what each credit rating means, what can cause your credit rating to be bad, what you can do to start improving your credit rating, and links to unbiased financial advisory services.

Got a question for us?

If you require further assistance, our team of Customer Advisors are here to help. We're open six days a week - you can view our opening hours here - and we're more than happy to answer your questions.