What are the next steps if I've been refused car finance?

Approved by the Car Finance Advisory Board

What are the reasons for being refused car finance?

There are numerous reasons why an individual can be refused car finance. Factors such as your age, personal circumstances, weak or no credit history and presence on the Electoral Roll are all contributing factors when it comes to making an informed decision on whether or not we can lend. To find out more information about your credit history and whether or not you will qualify for car finance with Creditplus, please visit our dedicated Help section.

I've previously been refused car finance with Creditplus, is it worth applying again?

If you've been refused car finance it's always a useful idea to find out why your application has been declined and what credit agency the lender used. This is useful to know because it may identify the necessary actions you need to take to address the situation, such as simply registering on the Electoral Roll, or paying off an outstanding debt on your credit file.

Once you've successfully identified the reasons for being refused car finance and rectified these, it's worth applying again. However it's always advisable to wait 3-6 months before doing so.

To find out more about your credit history, please visit our Credit History section.

Will being refused car finance negatively affect my credit score?

No, your credit report will not show whether an application for credit is approved or declined, but it will show that you've made multiple applications to lenders.

When you apply for credit an enquiry is then added to your credit report. The impact from this enquiry to your credit report is very small and becomes less significant as time passes. The enquiry indicates that you've applied to take out credit, but it'll only show as a new account on your credit report if approved by the lender.

Once approved, it'll then be down to how you decide to manage that debt which will positively or negatively impact your credit score.

If no new account appears on your credit file, it doesn’t mean that your application for credit was declined; it could quite simply mean that you chose not to accept the loan.

If you're in doubt about your credit file and whether or not you'll be approved, please use our free Credit Rating Guide. Please also remember that we only soft search our applicants, leaving no footprints (inquiries) on your credit report.

Can Creditplus help me if I've been refused car finance by another lender?

Whether or not we'll be able to help you find car finance will depend on your personal circumstances. All car finance companies will have their own set guidelines when it comes to lending credit which will differ from company to company. All lenders will have different margins when it comes to looking at an individual’s credit history and assessing the risk so it's not unlikely for an individual to be refused for car finance from one company and accepted elsewhere.

We compare more than 50 different lending options that collectively cater to a range of different circumstances, so we're often able to find you competitive rates, even if you've been refused for car finance elsewhere.

Can’t find the topic you’re looking for here? Please take a look at the rest of our Help section or talk to one of our Customer Advisors today by using our LiveChat functionality, found on the right hand side of this webpage.

Published: 16/05/2016
Last Updated:31/01/2019
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