Getting Car Finance with Bad Credit: Your Questions Answered

Getting a car can be a challenge, especially if you have bad credit. But fear not! This guide tackles the most common questions people ask about securing car finance with less-than-perfect credit.

Can I get car finance with really bad credit?

The short answer: Yes, it’s possible. Lenders may be more cautious with very low credit scores, but it doesn’t automatically disqualify you. However, be prepared for:

• Higher interest rates: You’ll likely pay more in interest compared to someone with good credit.
• Smaller loan amounts: The lender may offer a lower loan amount to minimise their risk.

Can I get car finance with a score as low as 200?

There’s no official minimum credit score for car finance. However, a score that low will significantly impact the interest rate you’re offered. It might be wise to consider ways to improve your credit score before applying.

What about County Court Judgements (CCJs)?

Having a CCJ on your credit report doesn’t automatically disqualify you from car finance. However, it can make it more difficult to get approved and may lead to less favourable terms.

What’s the lowest credit score to get a car?

There isn’t a single answer. It depends on the lender’s criteria. Generally, used car loans are more readily available for those with lower credit scores (around 600), while new car loans typically require a score closer to 730.

What Experian score do I need?

There isn’t a minimum Experian score or any specific credit reference agency used by all lenders. Different lenders use different scoring systems, so your score may vary slightly depending on the provider.

So, what can I do?

Here are some tips for getting car finance with bad credit:

• Improve your credit score: Take steps to improve your credit score before applying. This can involve paying bills on time, reducing credit card debt, and getting a credit builder card.
• Shop around: Don’t just accept the first offer you get. Compare rates and terms from multiple lenders to find the best deal.
• Consider a larger down payment: Putting down a larger down payment can make you a more attractive borrower to lenders and potentially lower your monthly payments.
• Look for lenders specialising in bad credit: Some lenders cater specifically to borrowers with bad credit. These lenders may be more flexible with their requirements.

By following these tips, you can increase your chances of getting approved for car finance, even with bad credit.