How to Get Car Finance Bad Credit UK

If you are looking for bad credit car loans in the UK, it may seem impossible, but you can easily get one. There are many lenders that specialize in providing car loans for bad credit. If you have been rejected by lenders from getting car loans, you can still get one from online lenders. Car finance for bad credit is available to people with poor credit scores or past history of bankruptcy.

Can You Get Car Finance with Bad Credit?

Yes. It may look challenging to get bad credit car finance UK, but it is very much possible. Having a good credit score can help you get approved for car finance. However, car finance for people with bad credit is still available.

The best way to get car finance with bad credit is to make a down payment. This shows the lender that you are in a position to repay your loan. It also helps you to lower interest rates for car loan bad credit.

Minimum Credit Score for Bad Credit Car Loans UK

There is no minimum credit score needed to get a car loan for bad credit UK. However, with better credit scores, you have a higher chance of getting approved. You also get lower interest rates compared to people with poor credit scores.

Can I Get Car Finance with no Credit History UK?

You can get car finance with no credit history in the UK. There are many lenders in the UK that do not look at credit scores and you can qualify for car finance. However, lenders view people with no credit scores as people with poor credit scores since they cannot tell how they manage their finances.

Types of Car Finance in the UK

Car finance works like a loan where you borrow money to buy or lease a car. You agree to be paying some amount of money towards the car loan and then you can drive away with the car. You can get four types of car finance in the UK.

  • Hire Purchase. A hire purchase is whereby you agree to make an initial deposit and then you will be making monthly repayments towards the car finance. The monthly repayments usually include the interest. When you finish paying the installments, you become the legal owner of the car.

  • Personal Contract Purchase. For personal contract purchase, the borrower pays a deposit and then makes monthly repayments which are inclusive of interest. However, these payments are usually lower compared to those of hire purchase, and you only pay the difference between the initial price of the car and its expected value at the end of the contract term.

  • Personal Loan. You can get a personal loan that you can use to purchase a car. You can use a personal loan to buy a car from an individual seller or a dealership. The borrower then repays the borrowed amount in monthly installments.

  • Personal Contract Hire. Personal contract hire is a long-term agreement to hire a car. The borrower does not have an option to buy the car at the end of the agreement. You just need to pay the deposit and make monthly payments for the time you will be using the car.

Car Finance Lenders for Bad Credit UK

Even if you have been declared bankrupt, have poor credit scores, or don’t have a credit history, you can still get car financing for bad credit. Consider some of the following car lenders:

Car Loans 365

Car Loans 365 is one of the best car loans for bad credit UK. They match you with the best car rates. To qualify for their car loans bad credit, you need to have the full UK driving license and have a minimum monthly income of £1,000. There is no deposit required and you can choose a car from any reputable dealer. Also, you can get a cheap first-time quote. Their rates start from 6.9% and you can repay the loan between 1 and 5 years.


Moneybarn is car finance for bad credit history that will help you get the right car. You can get financing from £4,000 and £25,000. To get car finance, you will need a full UK driving license, monthly earnings of over £1,000 after tax. You must also be aged between 21 and 70 years old and provide 2 consecutive months of payslips and bank statements.

Car Loan Centre

Car Loan Centre is the best for very bad credit car finance. Getting cat finance with bad credit can be challenging, but this lender can help you a great mile. The lender considers all your financial circumstances and you can get car finance regardless of your situation. To get car finance bad credit UK, you need to provide proof of ID, proof of address and last 3 months’ bank statements. You need to be at least 18 years old to be eligible for their car finance for bad credit.

Other car finance lenders for bad credit you can consider include:

Is Bad Credit Car Finance UK a Good Idea?

The answer to this question depends on why you need the car. If you need a car to handle your daily work-related activities, the car is a necessity. However, if you are buying a car for leisure, you should consider waiting. This is because a car will come with additional costs. It will need regular maintenance, regular upgrades, and insurance. If you have money problems, we recommend that you don’t buy a car, especially on a loan. If you decide to buy a car, there are several things you need to do.

First, ensure that the car is not expensive. Compare the car on different platforms like CarWow and Coast2Coast Cars. This will show you quality and less expensive cars. Second, after you buy the car, you can use it to make money with it in your free time.

Summary of How to Get Car Finance with Bad Credit

Can I get car finance if I have bad credit? Yes. However, getting car finance with bad credit can seem challenging, but it is possible to get one. The best way to get car finance with bad credit is to make a down payment. Then shop around and get car finance lenders for bad credit UK. If you want to buy a car, do so if you really need one.

FiFi Finance is a financial website. We are an online resource for everyone who wants to learn more about financial matters. We provide information on topics such as bank accounts, investments, loans, and personal financial management. Our mission is clear; we intend to help to improve financial literacy, by making finances work for everyone. Your feedback is appreciated. Read more about us.