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Bad credit car finance

Find great deals on car finance - without a high credit score

  • The search won't harm your credit score
  • Discover your chance of being accepted
  • Apply today

Can I get a car finance with bad credit?

A new car is always a major expense, and while they’re often vital – whether you need them for work, shopping or the school run – even the cheapest new car costs thousands of pounds.

Car finance is a catch-all term for several different types of loan and hire purchase, and it’s a common way to fund a new car. But if you’ve had difficulties with credit in the past, you may be counted out of the better deals.

Fortunately, there are still options available: MoneySuperMarket works with specialists in car finance for bad credit, and we might be able to match you with a car loan that works for you

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How to get car finance with bad credit

There are many reasons why someone might have a lower-than-average credit score. You might have defaulted on a loan in the past, or have previously declared bankruptcy. Perhaps you don’t have much of a credit history at all, either because you’re young or because you only recently moved to the UK. Whatever your reason, MoneySuperMarket will search the market to find the car loans you’re most eligible for, so you know where you stand before you apply. It works like this:

Credit Score

It doesn’t harm your credit score

Tell us a little about yourself, your finances and the loan you want

search icon

We search the market

We'll use your information to find the best deals available - which also match your financial circumstances

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Choose the deal you like

We’ll then show you a list of car loans you can apply for today, alongside your chance of being accepted.

Types of car finance for bad credit

There are many different types of car finance on offer, but MoneySuperMarket specialises in car loans, so you won’t be able to set up a hire purchase or a personal contract purchase through us. These are your options:

  • one icon

    Personal loans

    Unsecured loans are often still
    available to people with lower
    credit scores – but you should
    expect to be offered a higher APR

  • two icon

    Secured loans

    A secured loan uses your house as
    collateral. It shows the lender you
    are serious about paying them back – but
    your home may be at risk if you default

  • three icon

    Guarantor loans

    A guarantor loan sees a friend or
    a family member step in and promise
    the lender that they will make your loan
    repayments if you fall behind 

  • four icon

    Hire Purchases

    This arrangement sees you making
    monthly payments to hire a new car.
    It only becomes yours to keep
    after the final instalment is paid

  • five icon

    Personal contract purchases

    Here you pay only for the estimated
    depreciation value of the car – but you
    won’t own it. PCPs are cheaper up
    front, but more expensive over all

How much does car finance cost?

Car finance arrangements are all loans of one type or another so you’ll always end up paying more  in total than if you paid for a new car in cash. However, there are ways you can reduce your spend:

  • Tick icon

    Pay more up front

    The more cash you put down on your initial purchase, the smaller the loan you’ll need to borrow

  • cross icon

    Trim the term

    The longer your loan lasts, the more interest will mount up.  With a shorter-term loan monthly repayments will be higher, however

You could get better offers on car loans by improving your credit score

 

Credit Monitor will help you take control of your credit score, with free personalised tips to help you improve your score - this could give you a wider range of loan rates to choose from.

Check your score for free with Credit Monitor in as little as 3 minutes

 

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With a pre-approved loan, the deal you see is the deal you get

When you apply for a loan, it’s not always clear what deal you’ll be offered or whether you’ll be accepted. But when you’re pre-approved for a loan, you know the deal you see is the deal you’ll get – you’ll know where you stand, with information that will help you make the right choice.

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Apply with confidence

When you’re pre-approved, the
loan amount, duration and interest
rate are all confirmed

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Tailored to you

When you know what you’ll be able to
borrow and how much it will cost, you
can choose a loan that’s right for you

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You’re in safe hands

This helps protect your credit score as
you’re less likely to be rejected when
you apply

MoneySuperMarket is a credit broker – this means we’ll show you products offered by lenders. We never take a fee from customers for this broking service. Instead we are usually paid a fee by the lenders – though the size of that payment doesn’t affect how we show products to customers.

We compare offers from a wide range of lenders from across the market

We work with over 30 loan providers including most of the big brands to help you borrow the money you need.

 

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There is no set credit score that disqualifies you for car loans. Every offer depends on your particular circumstances. You can make an application with MoneySuperMarket without the risk of harming your credit score, which will show you how likely you are to be accepted for any of the deals we offer.

 

The better your credit score, the easier it is to get accepted for a car finance deal of your choice. It’s certainly much harder for people with poor credit to get accepted – but it’s certainly not impossible.

You aren’t allowed to take loans out while you’re going through bankruptcy. It gets easier once the bankruptcy has been discharged, but there’ll still be a mark on your credit history that will prevent you from getting the best deals for a minimum of six years. This means you will be able to get car finance eventually. In the mean time, it’s worth trying to build up your credit score in other ways.

You can get car finance if you’ve been issued with a County Court Judgment (CCJ), but approval is harder to come by.

You can apply, but you’re not guaranteed to be approved. Loan defaults stay on your credit record, and will show up when a lender looks at your application.

MoneySuperMarket uses a soft search of your credit history to ascertain whether you’ll be eligible for the loans we list. This will not harm your credit score. However, if you then apply for a loan you’re not likely to get, the lender will use a hard search which may affect your score.