Can I get car finance with bad credit?
We believe that buying a car should be easy for everyone and that bad or poor credit shouldn’t stand between you and your vehicle.
At Car Loan 4U we work with a wide range of lenders who offer many different types of loan and car finance, putting us in the best position to help you find car finance. We’re committed to ensuring you only borrow what you can reasonably afford to repay, so we'll only offer to arrange finance for you if we believe you can afford it, which means when you drive your car away you can feel confident you've got the best deal.
Who we can help
There are many causes of “bad credit” so we always look at your individual circumstances when you apply for car finance.
- Missed payments, defaults or arrears – Many of our customers have struggled with debt in the past, so don’t feel put off applying with us. A bad or poor credit rating is often caused by missing some payments or falling behind with repayments. We’ve carefully selected the lenders we work with to include ones who are happy to consider applicants in this situation and we’ll always try and find you a great car finance deal which is right for your circumstances.
- Bankruptcy – If you have been discharged from bankruptcy for a clear 12 months then we’re happy to consider your application. If you’re currently bankrupt then unfortunately we won’t be able to help you at this point in time, but once you’ve been discharged for a year you are welcome to apply for car finance through us.
- CCJs – We regularly help people who have CCJs. As long as they’re over 4 weeks old we’ll consider your application and have lenders who may be able to provide you with car finance.
- IVAs – If you have been under an IVA in the past and it is now settled, we are happy to consider your application. If you have an IVA at the moment we might need written confirmation from your insolvency practitioner that you're allowed to borrow again, so if you wish to apply then it might be worth asking your IVA company first if they will provide this.
Tips for applying with bad credit
There are a few steps you can take which will improve your chance of being accepted for car finance if you have bad credit, and also help you to get a better deal on your loan.
- Catch up any missed payments. Can you make an extra payment to make up for ones you’ve missed?
- Provide a deposit. While this isn’t always necessary, it usually helps if you have bad credit.
- Consider a joint application. If your spouse or partner, or someone else at your address, has good credit then you can increase your chances of acceptance by applying for finance together.
How applying for a car loan affects your credit rating
When you first apply with us we do a “soft search” on your credit history, which is not visible to other lenders. If it’s obvious that we won’t be able to help you with car finance at this point in time we will not conduct any hard searches and your credit profile won’t be affected at all. If we believe that you might be accepted by one of our lenders we will do hard searches at some point during the process (on average we do 2 for each customer) so that we can find you the best car loan for your circumstances.