{"id":26957,"date":"2024-02-20T12:07:07","date_gmt":"2024-02-20T12:07:07","guid":{"rendered":"https:\/\/www.lendingstream.co.uk\/blog\/?p=26957"},"modified":"2025-12-23T10:22:51","modified_gmt":"2025-12-23T10:22:51","slug":"bad-credit-car-finance","status":"publish","type":"post","link":"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/","title":{"rendered":"Bad Credit Car Finance &#8211; Read Our Full Guide"},"content":{"rendered":"\n<p>If you have bad credit, it can be difficult to purchase a car. <strong>But don\u2019t worry, you\u2019re not alone and you can finance a car with bad credit.<\/strong> You\u2019re in the right place to find answers to some of the most asked questions and <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/improve-your-credit-score\/\"><strong>tips on how to improve your credit score<\/strong><\/a>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f293702b987\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f293702b987\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#can_i_get_car_finance_with_bad_credit\" >Can I get car finance with bad credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#what_is_considered_a_bad_credit_score\" >What is considered a bad credit score?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#how_does_bad_credit_affect_car_finance\" >How does bad credit affect car finance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#how_can_i_apply_for_car_finance_with_bad_credit\" >How can I apply for car finance with bad credit?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#1_work_out_how_much_you_have_to_pay_for_the_car_you_want\" >1. Work out how much you have to pay for the car you want<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#2_complete_the_application_form_to_get_the_car_finance\" >2. Complete the application form to get the car finance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#3_get_approved\" >3. Get approved<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#4_buy_your_car\" >4. Buy your car<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#what_are_my_options_for_car_finance_if_i_have_bad_credit\" >What are my options for car finance if I have bad credit?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#1_personal_loans\" >1. Personal Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#2_hire_purchase\" >2. Hire Purchase<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#3_guarantor_loans\" >3. Guarantor Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#4_personal_contract_hire_pch\" >4. Personal Contract Hire (PCH)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#5_personal_contract_purchase_pcp\" >5. Personal Contract Purchase (PCP)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#what_should_i_consider_when_buying_a_car_with_bad_credit_finance\" >What should I consider when buying a car with bad credit finance?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#1_compare_lenders_and_loan_options\" >1. Compare lenders and loan options.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#2_find_out_what_the_lenders_requirements_are\" >2. Find out what the lenders requirements are.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#3_make_sure_you_buy_your_car_from_a_reputable_car_dealership\" >3. Make sure you buy your car from a reputable car dealership.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#4_consider_buying_a_newer_car_with_lower_mileage\" >4. Consider buying a newer car with lower mileage.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#can_i_get_car_finance_for_bad_credit_without_credit_check\" >Can I get car finance for bad credit without credit check?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#what_does_a_car_finance_company_see_when_they_run_a_credit_check_on_me\" >What does a car finance company see when they run a credit check on me?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#is_car_finance_bad_for_my_credit_score\" >Is car finance bad for my credit score?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#1_a_hard_credit_check_will_be_done_when_you_apply_for_car_finance\" >1. A hard credit check will be done when you apply for car finance.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#2_how_you_maintain_your_repayments_will_affect_your_credit_score\" >2. How you maintain your repayments will affect your credit score.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#how_can_i_quickly_improve_my_credit_score\" >How can I quickly improve my credit score?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#1_register_on_the_electoral_roll\" >1. Register on the electoral roll<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#2_remove_links_to_anyone_youre_no_longer_connected_to_financially\" >2. Remove links to anyone you\u2019re no longer connected to financially<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#3_dont_use_up_all_your_available_credit\" >3. Don\u2019t use up all your available credit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#4_check_your_credit_report\" >4. Check your credit report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#5_monitor_your_credit_file\" >5. Monitor your credit file<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#6_make_payments_on_time\" >6. Make payments on time<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#7_dont_make_lots_of_new_applications_close_together\" >7. Don\u2019t make lots of new applications close together<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#faqs_%e2%80%93_bad_credit_car_finance\" >FAQs &#8211; Bad Credit Car Finance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#can_i_get_car_finance_with_very_poor_credit\" >Can I get car finance with very poor credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#can_i_finance_a_car_for_someone_else\" >Can I finance a car for someone else?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-finance\/#how_quickly_can_i_get_a_car_with_poor_credit\" >How quickly can I get a car with poor credit?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"can-i-get-car-finance-with-bad-credit\"><span class=\"ez-toc-section\" id=\"can_i_get_car_finance_with_bad_credit\"><\/span><strong>Can I get car finance with bad credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A lot of people have bad credit for a variety of reasons. Perhaps you had some <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/common-financial-mistakes-to-avoid\/\"><strong>financial difficulties<\/strong><\/a> in the past. Maybe you haven&#8217;t had time to build up your credit history. No matter what the reason, your bad credit shouldn\u2019t stop you from getting the car you need. You can get car finance if you have bad credit.<\/p>\n\n\n\n<p><strong>There are specialist lenders who\u2019ll give you a loan to buy a car<\/strong>. There are different forms of finance you could get \u2013 but we\u2019ll go through these later. The main point here is that you don\u2019t have to have a perfect credit score to get finance on a car.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-considered-a-bad-credit-score\"><span class=\"ez-toc-section\" id=\"what_is_considered_a_bad_credit_score\"><\/span><strong>What is considered a bad credit score?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>A bad credit score is usually one that falls below about 500. <\/strong>Depending on which Credit Reference Agency (CRA) you check with, what\u2019s classed as a poor score is slightly different.<\/p>\n\n\n\n<p>In the table below, we show you the difference between excellent and poor credit scores. This is based on the three main CRAs in the UK, which are <strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/experian\/\" data-type=\"link\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/experian\/\" target=\"_blank\" rel=\"noreferrer noopener\">Experian<\/a><\/strong>, <strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/equifax\/\" data-type=\"link\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/equifax\/\" target=\"_blank\" rel=\"noreferrer noopener\">Equifax<\/a><\/strong>, and <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/transunion\/\" data-type=\"link\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/transunion\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>TransUnion<\/strong><\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Credit Score Range<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Very Poor\/Poor<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Fair<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Good\/Very Good<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Excellent<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Experian<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">0-640<\/td><td class=\"has-text-align-center\" data-align=\"center\">641-860<\/td><td class=\"has-text-align-center\" data-align=\"center\">861-1120<\/td><td class=\"has-text-align-center\" data-align=\"center\">1121-1250<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Equifax<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">0-438<\/td><td class=\"has-text-align-center\" data-align=\"center\">439-530<\/td><td class=\"has-text-align-center\" data-align=\"center\">531-810<\/td><td class=\"has-text-align-center\" data-align=\"center\">811-1,000<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>TransUnion<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">0-565<\/td><td class=\"has-text-align-center\" data-align=\"center\">566-603<\/td><td class=\"has-text-align-center\" data-align=\"center\">604-627<\/td><td class=\"has-text-align-center\" data-align=\"center\">628-710<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>As seen above, the lowest scores are classed as very poor, and this is where you\u2019ll find it harder to get a loan. But it\u2019s not impossible. There are some lenders who will still consider <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/bad-credit-loans\/\"><strong>lending to people very poor credit<\/strong><\/a> score. You\u2019ll need to check the terms though as the interest rates and charges may be higher.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-does-bad-credit-affect-car-finance\"><span class=\"ez-toc-section\" id=\"how_does_bad_credit_affect_car_finance\"><\/span><strong>How does bad credit affect car finance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Bad credit affects car finance in the following ways.<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>It limits the number of lenders who\u2019ll give you finance<\/strong>. This is because a lot of mainstream lenders prefer customers who have good credit scores.<\/li>\n\n\n\n<li><strong>You\u2019ll be offered higher rates of interest<\/strong>. This will make the cost of borrowing the money higher.<\/li>\n\n\n\n<li><strong>You may have extra fees to pay<\/strong>. This is often the case not just with the lender but also when you take out a loan through a broker. The broker may charge you a fee so make sure you read all the terms before you apply.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-can-i-apply-for-car-finance-with-bad-credit\"><span class=\"ez-toc-section\" id=\"how_can_i_apply_for_car_finance_with_bad_credit\"><\/span><strong>How can I apply for car finance with bad credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are four steps to follow if you want to apply for car finance with bad credit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"1-work-out-how-much-you-have-to-pay-for-the-car-you-want\"><span class=\"ez-toc-section\" id=\"1_work_out_how_much_you_have_to_pay_for_the_car_you_want\"><\/span><strong>1. Work out how much you have to pay for the car you want<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Decide on what sort of car you need.<\/strong> There\u2019s no point in getting into debt buying a big or expensive car if you only need it to drive yourself into work. But if you have a growing family and need more seats, a big boot then looks into cheaper vehicles that will still suit your needs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-complete-the-application-form-to-get-the-car-finance\"><span class=\"ez-toc-section\" id=\"2_complete_the_application_form_to_get_the_car_finance\"><\/span><strong>2. Complete the application form to get the car finance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you\u2019re not sure which lender to go with, find out which ones you\u2019re eligible to apply with first. You can do this by entering your details with a broker or by looking at lender websites. Make sure the car you want complies with the lender\u2019s car financing terms.<\/p>\n\n\n\n<p><strong>Remember <\/strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-find-out-if-a-loan-company-is-legit-or-not\/\"><strong>reputable lenders<\/strong><\/a><strong> will do a credit check when you submit your full application.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3-get-approved\"><span class=\"ez-toc-section\" id=\"3_get_approved\"><\/span><strong>3. Get approved<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>To get approved, the lender may ask for extra information from you. For example, they might ask to see the following documents.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Payslips<\/li>\n\n\n\n<li>Bank statements<\/li>\n\n\n\n<li>Your driving licence<\/li>\n<\/ul>\n\n\n\n<p>Be willing to provide whatever information the lender asks for to help get approved.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"4-buy-your-car\"><span class=\"ez-toc-section\" id=\"4_buy_your_car\"><\/span><strong>4. Buy your car<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This is where you get the money to buy the car you want. You\u2019ll also be aware of the terms of your finance agreement, so make sure you stick to them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-are-my-options-for-car-finance-if-i-have-bad-credit\"><span class=\"ez-toc-section\" id=\"what_are_my_options_for_car_finance_if_i_have_bad_credit\"><\/span><strong>What are my options for car finance if I have bad credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are different types of car finance available even with bad credit. We explain some options for you here.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"1-personal-loans\"><span class=\"ez-toc-section\" id=\"1_personal_loans\"><\/span><strong>1. Personal Loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>With a personal loan, you don\u2019t need to secure it against the car, and you don\u2019t need to pay a deposit. <strong>You can apply for a personal loan direct with the lender or through a broker<\/strong>. Once you know how much money you need, you apply for that amount. If you\u2019re approved, the money will be in your bank account for you to buy the car.<\/p>\n\n\n\n<p>Having bad credit will mean you\u2019ll have to use lenders who offer loans for people with bad credit.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>The pros of a personal loan<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>The cons of a personal loan<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">You don\u2019t have to say what you need the money for. &nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">You\u2019ll be limited with your choice of lenders if you\u2019ve got bad credit. &nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">There are no restrictions on the car you buy. You get to choose the age of the car and the mileage you\u2019ll do. &nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">The interest rate will be higher than on a standard personal loan. &nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">You own the car while you\u2019re paying back the loan, not the finance company.<\/td><td class=\"has-text-align-center\" data-align=\"center\">If you sell the car, before the loan expires, you\u2019ll still have to pay back the loan.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-hire-purchase\"><span class=\"ez-toc-section\" id=\"2_hire_purchase\"><\/span><strong>2. Hire Purchase<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Hire purchase (HP) lets you borrow money against the car you want to buy. The way this works is that you have to pay a deposit first. Then you pay the remaining cost of the car to the HP company with fixed payments each month. This continues over a set period and at the end you get to own the car.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>The pros of hire purchase<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>The cons of hire purchase<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">If you decide you no longer want to keep paying for the car, you can walk away from the agreement. Halfway through your payment term you can hand over the car and stop paying. This will end the agreement. &nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">You don\u2019t own the car until the final repayment is made. &nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">As the HP company own the car until it\u2019s paid off, you can go to them if you have problems. For example, let\u2019s say the car you buy is faulty and the dealer won\u2019t repair it. You can ask the HP company to resolve it. &nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">The finance company will take the car away if you can\u2019t keep up the repayments. &nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">&nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">You might have to make an additional final payment if you want to own the car when the payments end. &nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3-guarantor-loans\"><span class=\"ez-toc-section\" id=\"3_guarantor_loans\"><\/span><strong>3. Guarantor Loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Guarantor loans are similar to personal loans. <strong>The main difference is that with a guarantor loan, <\/strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/who-can-be-a-guarantor\/\"><strong>you need someone<\/strong><\/a><strong> with good credit to take it out with you<\/strong>. The guarantor is responsible for paying back the debt if you\u2019re unable to.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>The pros of guarantor loans<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>The cons of guarantor loans<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">They\u2019re easier to get approved for if you\u2019ve got bad credit. &nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">If you get rid of the car, you\u2019ll still have to pay off your loan. &nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">By having someone else to guarantee the repayments, you may be able to borrow a higher amount<\/td><td class=\"has-text-align-center\" data-align=\"center\">If you\u2019re unable to pay, it could put a strain on the relationship you have with the guarantor. &nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">The loan isn\u2019t linked to the car, so you have no restrictions on which car you buy or what mileage you do<\/td><td class=\"has-text-align-center\" data-align=\"center\">&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"4-personal-contract-hire-pch\"><span class=\"ez-toc-section\" id=\"4_personal_contract_hire_pch\"><\/span><strong>4. Personal Contract Hire (PCH)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Personal contract hire is also known as car leasing. <strong>It works like a long term rental<\/strong>. After paying a deposit, you pay a fixed amount each month over a set period. At the end of the period, you give the car back to the finance company.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>The pros of personal contract hire<\/strong> &nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>The cons of personal contract hire<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">The repayments tend to be lowered each month. &nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">You don\u2019t own the car, you only have it on hire for the term of the lease. There\u2019s no option to buy the car at the end of the lease. &nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">You can buy a newer car because you\u2019re not paying to purchase it and the payments are less. &nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">You\u2019ll have restrictions on how much mileage you can do each year. If you go over this amount, you\u2019ll have extra charges to pay. &nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">You can replace the car for a new one every few years. &nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">You need to make sure you look after the car. If you don\u2019t hand it back in good condition, you\u2019ll be charged for any repairs. &nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">&nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">The car will be repossessed if you stop paying. &nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"5-personal-contract-purchase-pcp\"><span class=\"ez-toc-section\" id=\"5_personal_contract_purchase_pcp\"><\/span><strong>5. Personal Contract Purchase (PCP)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A personal contract purchase lets you pay monthly for your car, after putting down a deposit. The way it works is that the PCP company puts a value on what the car will be worth at the end of the agreement. They then work out the difference between what the end value of the car will be and its current value. This difference between these two values is what you pay back, with interest of course.<\/p>\n\n\n\n<p><strong>With a PCP you have the option to own the car<\/strong>. You can do this by paying an additional lump sum at the end of the agreement. This is sometimes called a balloon payment.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>The pros of personal contract purchase<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>The cons of personal contract purchase<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">The repayments tend to be lowered each month. &nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">You don\u2019t own the car unless you pay the balloon payment at the end of the contract. &nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">You can buy a newer car and can replace it every few years. &nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">If you choose not to buy the car at the end it could end up costing you more than a personal contract hire. &nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">If you hand the car back at the end of the contract, it won\u2019t matter how much it\u2019s depreciated in that time. &nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">You have limits on how much mileage you can do each year. If you go over this, you\u2019ll have to pay a fee for every mile that\u2019s over your limit. &nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">&nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">You need to make sure you look after the car. If you don\u2019t hand it back in good condition, you\u2019ll be charged for any repairs. And you\u2019ll be charged for any miles you do over the agreed mileage limit. &nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-should-i-consider-when-buying-a-car-with-bad-credit-finance\"><span class=\"ez-toc-section\" id=\"what_should_i_consider_when_buying_a_car_with_bad_credit_finance\"><\/span><strong>What should I consider when buying a car with bad credit finance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are things you should think about when buying a car using finance for bad credit. The following tips will help.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"1-compare-lenders-and-loan-options\"><span class=\"ez-toc-section\" id=\"1_compare_lenders_and_loan_options\"><\/span><strong>1. Compare lenders and loan options.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Do your homework and look at what car finance options you have. Choose the one that\u2019s most affordable for you and that suits your situation the best.<\/p>\n\n\n\n<p>Once you know what type of finance you want, shop around to get the best deal. There are a lot of lenders and brokers to choose from. Find out which ones offer finance for bad credit. And check the interest rates and fees each lender charges before you apply.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-find-out-what-the-lenders-requirements-are\"><span class=\"ez-toc-section\" id=\"2_find_out_what_the_lenders_requirements_are\"><\/span><strong>2. Find out what the lenders requirements are.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Some lenders will have conditions which you have to agree to if you want to get the finance. For example, some lenders will state that the car must be less than 10 years old when you buy it. That\u2019s why you need to check before you start searching for a car.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3-make-sure-you-buy-your-car-from-a-reputable-car-dealership\"><span class=\"ez-toc-section\" id=\"3_make_sure_you_buy_your_car_from_a_reputable_car_dealership\"><\/span><strong>3. Make sure you buy your car from a reputable car dealership.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The last thing you want is to buy a car that hasn\u2019t had the proper checks done and then it breaks down. It could end up costing you a lot of money to repair that you may not have.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"4-consider-buying-a-newer-car-with-lower-mileage\"><span class=\"ez-toc-section\" id=\"4_consider_buying_a_newer_car_with_lower_mileage\"><\/span><strong>4. Consider buying a newer car with lower mileage.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Yes, a newer car with low mileage will cost more, but you\u2019ll save money in maintenance and running costs. Having a car that\u2019s reliable will save you money in the long run.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"can-i-get-car-finance-for-bad-credit-without-credit-check\"><span class=\"ez-toc-section\" id=\"can_i_get_car_finance_for_bad_credit_without_credit_check\"><\/span><strong>Can I get car finance for bad credit without credit check?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The short answer to this question is no. Lenders in the UK who are registered with the <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/financial-conduct-authority\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/financial-conduct-authority\/\" rel=\"noreferrer noopener\">Financial Conduct Authority (FCA)<\/a> must follow their rules. <strong>This means that<\/strong> <strong>when you apply for a loan, the lender must carry out a credit check<\/strong>. It\u2019s part of the process of checking that you\u2019re not over committing yourself to too much debt.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-does-a-car-finance-company-see-when-they-run-a-credit-check-on-me\"><span class=\"ez-toc-section\" id=\"what_does_a_car_finance_company_see_when_they_run_a_credit_check_on_me\"><\/span><strong>What does a car finance company see when they run a credit check on me?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When a car finance company runs a credit check on you, <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-warning-flags\/\"><strong>they\u2019ll see information<\/strong><\/a> that\u2019s held on your credit file. Your credit file is recorded with the three CRAs mentioned above. They\u2019re Experian, Equifax, and TransUnion.<\/p>\n\n\n\n<p>You can see that information just by getting a full credit report from each of the CRAs. It\u2019s how you can check your own credit report. <strong>You\u2019re entitled to one full credit report for free every 12 months from the CRAs<\/strong>. If you want to see what\u2019s on your credit file more often than this, then you\u2019ll have to pay a fee.<\/p>\n\n\n\n<p><strong>There are credit monitoring services in the UK who\u2019ll give you information on your credit score for free<\/strong>. These services include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/www.clearscore.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Clearscore<\/a><\/strong><\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.creditkarma.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">Credit Karma<\/a><\/strong><\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.checkmyfile.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">CheckMyFile<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<p>Although these credit monitoring services will give you your credit score for free, you won\u2019t get a full credit report. As with the CRAs, you\u2019ll have to pay to get a full credit report.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"is-car-finance-bad-for-my-credit-score\"><span class=\"ez-toc-section\" id=\"is_car_finance_bad_for_my_credit_score\"><\/span><strong>Is car finance bad for my credit score?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When you take out car finance it will <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/what-affects-your-credit-score\/\">affect your credit score<\/a> in two ways.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"1-a-hard-credit-check-will-be-done-when-you-apply-for-car-finance\"><span class=\"ez-toc-section\" id=\"1_a_hard_credit_check_will_be_done_when_you_apply_for_car_finance\"><\/span><strong>1. A hard credit check will be done when you apply for car finance.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/hard-credit-check\/\"><strong>hard credit check<\/strong><\/a> will be done when the finance company looks at your credit file. <strong>They\u2019ll check the information on there to help them make their decision about your application<\/strong>.<\/p>\n\n\n\n<p>When they do a hard credit check, it\u2019ll have a temporary impact on your credit score. It will bring your score down by a few points. It also means other lenders will be able to see that you\u2019ve applied for finance. But it won\u2019t stay on your credit file for more than 12 months.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-how-you-maintain-your-repayments-will-affect-your-credit-score\"><span class=\"ez-toc-section\" id=\"2_how_you_maintain_your_repayments_will_affect_your_credit_score\"><\/span><strong>2. How you maintain your repayments will affect your credit score.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you\u2019re approved for car finance, your credit score will improve if you keep on top of your repayments. <strong>Keeping up to date with your repayments will help improve your credit score<\/strong>.<\/p>\n\n\n\n<p>If you miss any payments, or you\u2019re late paying them, this will show on your credit file. It\u2019ll have a big impact on your credit score and will bring it down.<\/p>\n\n\n\n<p>This is why you should do your research before taking out any finance. Firstly, so that you can apply with a lender who\u2019s more likely to approve your loan application. Secondly, to make sure you can afford the repayments and help improve your credit score.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-can-i-quickly-improve-my-credit-score\"><span class=\"ez-toc-section\" id=\"how_can_i_quickly_improve_my_credit_score\"><\/span><strong>How can I quickly improve my credit score?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are steps you can take that can <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-improve-your-credit-score-in-30-days\/\"><strong>quickly improve your credit score<\/strong><\/a>. Here are some tips you could try.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"1-register-on-the-electoral-roll\"><span class=\"ez-toc-section\" id=\"1_register_on_the_electoral_roll\"><\/span><strong>1. Register on the electoral roll<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Being registered on the electoral roll helps the lender verify who you are. Not being on there reduces your credit score. So, if you\u2019re not already registered, it\u2019s worth doing as it\u2019ll give your credit score a quick boost.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-remove-links-to-anyone-you-re-no-longer-connected-to-financially\"><span class=\"ez-toc-section\" id=\"2_remove_links_to_anyone_youre_no_longer_connected_to_financially\"><\/span><strong>2. Remove links to anyone you\u2019re no longer connected to financially<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Have you ever taken out loans or had bank accounts with someone in the past but are no longer with? If so, get the connection with them removed from your credit file. <strong>If they\u2019ve got bad credit, it\u2019ll affect you when you apply for credit.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3-don-t-use-up-all-your-available-credit\"><span class=\"ez-toc-section\" id=\"3_dont_use_up_all_your_available_credit\"><\/span><strong>3. Don\u2019t use up all your available credit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Keep your borrowing to around 30% of your credit limit. Lenders like to see this as it signals to them that you can manage your money well. <strong>If you\u2019ve borrowed money up to your credit limit, try and bring it down before you apply for finance<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"4-check-your-credit-report\"><span class=\"ez-toc-section\" id=\"4_check_your_credit_report\"><\/span><strong>4. Check your credit report<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Check for errors. You\u2019ll be surprised at what a difference a mistake can make on your credit file. Maybe a lender has entered that you were late making a payment when you weren\u2019t. Maybe your personal details are wrong. <strong>If you spot any mistakes, get them put right by contacting the credit reference agency (CRA).<\/strong><\/p>\n\n\n\n<p>There are three main CRAs in the UK you\u2019d have to check your credit file with.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"5-monitor-your-credit-file\"><span class=\"ez-toc-section\" id=\"5_monitor_your_credit_file\"><\/span><strong>5. Monitor your credit file<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Once you\u2019ve checked that everything on your credit file is correct, keep an eye on it. If anything changes, make sure it\u2019s changed because of something you\u2019ve done and not by mistake.<\/p>\n\n\n\n<p><strong>There are credit monitoring services that will alert you if anything changes on your credit file<\/strong>. They\u2019re free to sign up to and can be helpful at giving you tips on how to improve your credit score.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"6-make-payments-on-time\"><span class=\"ez-toc-section\" id=\"6_make_payments_on_time\"><\/span><strong>6. Make payments on time<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Every time you\u2019re late making a payment, it brings down your credit score. A good way to overcome this is by setting up a direct debit. <strong>If you make sure your payments go out on the day your salary goes in, you\u2019re less likely to miss them<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"7-don-t-make-lots-of-new-applications-close-together\"><span class=\"ez-toc-section\" id=\"7_dont_make_lots_of_new_applications_close_together\"><\/span><strong>7. Don\u2019t make lots of new applications close together<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When you apply for a lot of loans over a few of weeks, it makes you look desperate for money. This can have a negative impact on your credit score.<\/p>\n\n\n\n<p><strong>Applications won\u2019t stay on your credit file for more than 12 months<\/strong>. The longer the gap between any applications you make, the less impact it has on your score.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"faqs-bad-credit-car-finance\"><span class=\"ez-toc-section\" id=\"faqs_%e2%80%93_bad_credit_car_finance\"><\/span><strong>FAQs &#8211; Bad Credit Car Finance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1671465327871\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"can_i_get_car_finance_with_very_poor_credit\"><\/span>Can I get car finance with very poor credit?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, you can. The car finance company has the car as an asset to secure the loan against. If you stop paying, they can recover their money by selling the car. This makes them more willing to consider approving finance to people with bad credit. <strong>But you need to be aware that the interest rates will be higher.<\/strong><\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1671465346852\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"can_i_finance_a_car_for_someone_else\"><\/span>Can I finance a car for someone else?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No, you can\u2019t. You can only buy a car on finance for yourself. If you take out car finance but then give the car to someone else, it\u2019s called fronting. <strong>This is illegal in the UK.<\/strong>\u00a0<br \/>If you want to help someone to buy a car, say your partner or child, the options you have are as follows.<br \/>You can give them the money to make the repayments themselves but let them take out the finance in their name.<br \/>You can take out a loan and give the money to them to pay for the car. You\u2019d then be responsible for the loan repayments.<br \/>You can be a guarantor on the car finance agreement they take out. But you\u2019d be responsible for the payments if they stop paying.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1671465362404\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"how_quickly_can_i_get_a_car_with_poor_credit\"><\/span>How quickly can I get a car with poor credit?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>You can get car finance with poor credit quite quickly<strong>. If you have all the paperwork that the lender requires, you could get approved the same day<\/strong>. The key is to do your homework before you apply. Make sure you\u2019re eligible with the lenders you\u2019re applying with first. This will improve your chance of being approved fast.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p><strong>Disclaimer:<\/strong> We are not providing financial advice. These are just tips for informational purposes. Also, we are not affiliated to any of the external parties linked here, they are provided for reference only.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you have bad credit, it can be difficult to purchase a car. But don\u2019t worry, you\u2019re not alone and you can finance a car with bad credit. You\u2019re in the right place to find answers to some of the most asked questions and tips on how to improve your credit score. Can I get [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":26959,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[267],"tags":[],"class_list":["post-26957","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loans"],"_links":{"self":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26957"}],"collection":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=26957"}],"version-history":[{"count":3,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26957\/revisions"}],"predecessor-version":[{"id":28163,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26957\/revisions\/28163"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media\/26959"}],"wp:attachment":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=26957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=26957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=26957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}