Can You Get Bad Credit Car Finance?

12/09/2024

Many people think their credit score affects their ability to get things like a phone contract or car finance.

But this couldn’t be further from the truth. Noticing the struggle of those with lower-than-average credit scores, newer companies have targeted their car finance plans to these types of customers, allowing them to experience the perks car finance brings.

Here’s what you need to know about bad credit car finance.

What is a bad credit score?

A credit score is a number given to individuals to represent how trustworthy they are in making loan or finance repayments on time.

Credit reference agencies have different scoring models, but on average, a poor-very poor score is anything below 550.

Why do I have a bad credit score?

A bad credit score can occur for a variety of different reasons, but the most common are:

• Late or missed payments
• Little to no credit score
• Relying heavily on credit types
• County court judgements (CCJ)

How credit scores affect car finance approval

Traditionally, credit scores reflect how likely you are to pay back loans and payment plans in full and on time.

Lenders and brokers look at these to determine your suitability for car finance. If you’ve had no experience with credit types in the past, or have had issues paying back the money, it used to be the case that getting approved for car finance was unlikely.

However, there are now companies that specialise in getting these types of people the credit plans and support they need.

Can I get car finance with a bad credit score?

Of course!

Companies like Concept Car Credit work to get as many customers as possible behind the wheel of a car they can afford – regardless of their credit score.

Getting a car finance agreement – even one tailored to bad credit – helps you build up your credit score more than you think. Making full and on-time payments demonstrates financial responsibility and improves your credit score.

Increasing this score will give you more freedom in the long run to apply for mortgages and loan types, without the worry your application will be denied.

Limit your credit usage	Register to vote	Check your report
Relying too heavily on credit, finance, and loans makes it seem like you don’t have the income or organisation to budget throughout the month.	Declaring your name and address on the electoral roll not only confirms your identity, but also verifies your credit history.	Getting to know your credit report makes it easier to spot mistakes, report them, and get them removed from your account.
Apply for credit sparingly	Pay your bills on time	Close unused accounts
Too many hard credit searches on your account can cause your score to drop, as this also suggests you’re too reliant on forms of credit.	Missing payments and not paying them in full or on time can all decrease your credit score.	Any idle accounts should be closed. While they may not be in use, they’ll still show up on your credit report, making it look like your credit usage is higher than it actually is.