Getting a car loan in the UK with bad credit can seem challenging. However, it is very easy to get a secured car loan bad credit in the UK. You just need to provide collateral or security to get bad credit secured car loan. Secured car loans are relatively cheaper compared to unsecured car loans and people with poor credit score can easily qualify. In this article, we are going to show you how you can get secure car loans bad credit in the UK.
Car Loans for Bad Credit in the UK
- There’s no minimum credit score for you to obtain a loan. Unfortunately, a poor credit score of 550 and below means you will pay higher interest rates.
- Lenders will always consider your credit score for you to get a car loan. However, even with a poor credit score, you can still get a car loan from providers listed here.
- Some of the options available to you include special lending arrangements such as guarantor loan or joint purchase.
How Secured Car Loans Bad Credit UK Work
To get a secured car loan UK, you will need to provide beyond the car itself. You will need to provide a financial asset such as your property. Once you have provided security, the lender will advance a car loan towards you. If you take a secured car loan and you are unable to repay the loan, the lender can repossess the financial asset. When you are done repaying the loan, the lender will release your security to you.
Secured Car Loan Requirements
The requirements for secured car loans bad credit differ from one lender to the other. For most lenders, to get a secured car loan in the UK, you need to provide the following:
- Income. You will need to provide proof of income to get a secured car loan for bad credit in form of a paycheck, a copy of tax returns, bank statement, etc.
- Proof of employment. You must prove that you have a stable source.
- Residency. You must also provide proof of residency.
- Driver’s license. Some lenders will require to see proof that you know how to drive by producing a driver’s licence.
- ID document. Lenders will need proof of identity of your identity. It can be a passport or any other form of government ID.
Secured Car Loans for Bad Credit
The following are some lenders that can help you get secured car finance bad credit in the UK.
Bad credit car loans come with high interest rates and risks. If you do not keep up with the repayments your car may be repossessed and your credit score will be damaged.
Choose My Car
Choose My Car is a car finance in the UK that can help you get a car loan by connecting you to reputable lenders who fits your credit score profile. You can get a quote in less than 5 minutes. It is fast and simple to apply for a loan. The lender will conduct a soft credit check once you make an application that doesn’t affect your credit score. They will then determine which is the right credit for you and then you can go ahead with the full credit application.
To get the best deal, you can opt to provide security, choose a car wisely, buy a car from a reputable dealership and ensure that you meet the minimum requirements.
Black Country Car Finance
Black Country Car Finance is one of the best-secured car loans for bad credit you can get in the UK. They offer secured car loans for different types of cars, be it saloons, SUV, or hatchbacks. They will get you sorted. They give car loans for up to 60 months.
Car Vine is a secured loan for bad credit in the UK. The lender will conduct a soft credit check before approving you for a loan. You can get a car credit car loan if you provide security for the loan. They offer a representative APR of 24.9%. One notable thing about CarVine is that county court judgments (CCJs), defaults and self employed are accepted.
To get a car loan, you need to apply for the loan by filling in an application form. A credit check will be conducted and then after that, you get approved. the decision is reached in just a few minutes. Then after that, the lender will get in touch with a car dealer and you can then pick your car from a car dealer.
Pegasus is also a great secured car finance bad credit in the UK. To get one, you just need to fill an online application form and then a team of experts will review your application. You will then be contacted after the review. You will be provided with an indication of monthly payments.
Once approved, the lender will speak with car dealers and you can pick up your car. The benefits you will enjoy from Pegasus car finance include 2-7 year repayments period, no hidden fees, no deposit required and you get competitive interest rates.
Go Car Credit
Go Car Credit offers secured car loans for bad credit UK. Their car loans are in the form of hire purchase car finance that helps most lenders get approved. this way, you get affordable monthly payments. You don’t need to give up a deposit to get a car finance even if you have bad credit. You just need to provide security for the loan and you will be advanced the car finance you need. The lender compares your monthly income against your monthly expenditure before they can provide you with car financing.
To get financing, you must show proof of income. For employed borrowers, you need to provide 3 months’ pay slips and if you are self-employed, you need to provide 3 months’ worth of bank statements.
Car Finance 247
Car Finance 247 is a secured car loan bad credit in the UK. They offer a representative APR of between 6.9% and 19.9%. To get car finance, you need to fill in an application form. You will get a decision in a matter of few minutes. You will get approved in a matter of a few minutes. After that, the next thing you will need to do is to select a car from a car dealer.
Moneybarn is a secured car loan bad credit in the UK that can help you get car finance. You can get a car loan of between £4,000 and £25,000. You need to have the full UK driving license and be aged between 21 and 70 years. You don’t need a credit history to get financing. You can get a better deal if you get a secured car loan from Moneybarn.
Moneybarn may be able to help you get a car loan even if:
- You are in an Individual Voluntary Agreement (IVA)
- You have a County Court Judgment (CCJ)
- You are self-employed
- You have experienced bankruptcy in the past
- You are on benefits
Summary of Secured Car Loans for Bad Credit
Even if you have bad credit, there are many lenders that can help you get one. Providing security while seeking a car loan can help you get a better offer. This can also reduce your interest rates, thereby reducing your monthly payments. Shop around to get the lender with the best offer before you can settle for one.