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Bad Credit Car Finance Specialists

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Rates from 29.7% APR
40.9% Representative APR -
Subject to status and affordability

Can I get car finance if I have bad credit?

Yes, if you have bad credit, it is possible to get car finance to help purchase your next car.

Here at Go Car Credit, we’re the experts who can help when it comes to getting car finance with bad credit. We think there’s more to life than a credit score and, when you need car finance, we look at loads of other factors.

Our flexible criteria could help you get approved for bad credit car finance even if you are struggling to get other forms of credit such as a personal loan.

We offer a specialist form of Hire Purchase car finance, which is a convenient way to pay for a vehicle based on budget and credit profile, so you can get affordable monthly payments.

Go Car Credit was founded in September 2017, and up to January 2024, we have helped over 30,000 people who may have been refused elsewhere, to get car finance.

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Representative example – Total amount of credit £9,000, annual interest rate 21.75% (fixed), charge for credit £10,092.32 (£9,787.32 interest, £295 admin fee and £10 option to purchase fee), total amount payable £19,092.32. Loan term of 60 monthly instalments, 59 payments of £318.04 and 1 final instalment of £328.04. 40.9% Representative APR – Subject to status and affordability

How does Bad Credit Car Finance work?

We use a Payment Reminder System also known as a “Black Box” which allows us to provide loans to those who other lenders may have rejected.

If you do have bad credit you may have been looking for instant decision car finance with no credit check, we could help you as we are experts in specialist car finance.

After you have made an application and once passing initial checks, applications we receive are reviewed by the employees themselves and not just a computer program. This approach allows us to consider any extenuating circumstances such as a poor credit history, self-employment or income from benefits.

We could provide you with the opportunity to re-establish your credit rating and get you back on track.

We have made our Car Finance process as easy as possible for you:

  • 1: Apply for Car Finance with us.
  • 2: After some initial checks, our Underwriting department will review your application.
  • 3: We will help you find your ideal car from an approved dealership.
  • 4: E-Sign the paperwork online and drive away!
Bad credit car finance process visualized with symbols for credit check, percentage rates, online application, and approval with supportive characters.

How Go Car Credit can help customers with bad credit

As an ethical and responsible lender, regulated by the Financial Conduct Authority, we help people who may have had bad credit in the past and are now experiencing borrowing issues from mainstream lenders.

We want to make sure your experience is straightforward, stress-free and efficient, from making your application to driving away in your new car.

We could help you get the car finance you need even though you have been previously refused by another direct lender or have reduced finance options.

  • Specialists in bad credit car finance
  • Affordable monthly payments to suit your budget
  • We are authorised and regulated by the Financial Conduct Authority
  • We have dealers nationwide, meaning we can help you find the perfect car at the perfect price.
Infographic with a friendly characters showcasing Go Car Credit services for bad credit assistance, featuring symbols for credit expertise, Financial Conduct Authority (FCA) endorsement, a checkmark for approval, and a map of the UK dotted with cars indicating a nationwide service.

Who can we help get car finance?

The below are just some examples of the people we can help:

1. Car finance for those with bad credit

Even if you have a less than perfect credit history, we may be able to help you. You could still be eligible to get the finance you need to get the car you’ve been dreaming of.

We consider providing car finance to people who have missed payments in the past or have a less-than-perfect credit history. However, if you have fallen behind on repayments with other credit agreements, it would be in your interest to do everything you can to get the repayments up to date quickly. Doing so may in improve your chances of your car finance application being accepted.

2. Car finance for unemployed and people on benefits

If you’re struggling to find work and are receiving help from the government, that doesn’t mean you should automatically be refused when you apply. We want to help as many people as possible, which is why we offer car finance on benefits.

3. Self-employed car finance

The flexibility of being your own boss is something many people aspire towards. However, if your income stream is not always predictable then some lenders may be hesitant to approve your application. That is where self-employed car finance can provide the solution.

4. Car finance with no guarantor

A guarantor is someone who is liable to repay the money you owe if you cannot, and many lenders may require you to provide a guarantor when you apply. However, all our car finance is with no guarantor, which allows us to focus on helping those with poor credit.

5. IVA car finance

If you have previously been in an IVA we could help you with securing car finance. If you are in an active IVA we are unable to help you at this time. If you have had an IVA in the past which has been settled, then you are welcome to apply for our car finance.

6. Car finance for bankruptcy

If you are currently in bankruptcy, unfortunately, we are unable to help at the present time. If your bankruptcy has been discharged, then we will be happy to consider you when you apply for car finance.

7. Car finance with CCJ

If you have an outstanding CCJ, that does not mean it is the end of the road when it comes to applying for car finance with bad credit as you can still apply for car finance with us, and we can review the application.

If I have been rejected by other bad credit lenders, does that mean I cannot get car finance with you?

Not necessarily, as there are many reasons you could be refused car finance, and lenders may not tell you why you have been rejected.

It could be due to not meeting their minimum criteria for income amount or recently missing payments on other credit commitments or bills, or even a very short time in a current employment.

All bad credit lenders will have their own different personalised criteria and methods of assessing whether they feel you can safely afford and that you will be committed to making the monthly repayments.

If you suspect you have been repeatedly denied car finance due to recent defaults, you could have a better chance at being approved by only applying for car finance with bad credit after a substantial amount of time has passed, and only if your credit commitments are starting to be repaid on time every month.

This is so that these recent repayments are reflected on your credit history and may increase the confidence of the lender in your ability and commitment to maintain loan repayments.

Why should I choose Go Car Credit to finance my next car?

We are at your service to guide and support you all the way through the car finance process.

We want to make sure your experience is straightforward, stress free and efficient, from making your application to driving away in your new car.

We could help you get the car finance you need even though you have been refused by other direct lenders.

  • Benefits Income: We will take benefits into account when calculating your income and monthly repayments for car finance with us.
  • Unemployed or Self-Employed: As long as you are able to prove to us that you have a steady monthly income and can safely afford the car finance repayments every month, we can consider your application.
  • Deposit: No deposit is needed to apply for car finance with us. You may only decide to pay a deposit if the maximum loan amount we are able to lend you is too low for the specific model and make of car you really want to get. The larger the deposit, the less you will need to borrow for your car finance.
  • No hidden fees or charges: We’ll agree all the costs, terms and conditions with you upfront, so there’s nothing to worry about when getting car finance with bad credit.
  • Responsible and regulated: We take our duty of care to customers very seriously – and we’re fully regulated by the Financial Conduct Authority for your peace of mind.
  • Quick, easy, straightforward: It can be difficult enough to get a car with bad credit, which is why we’ve designed our application process to be as simple as possible.
  • Earning our customers’ trust: We’ve assisted numerous individuals in obtaining a car, even with bad credit, which is reflected in the many positive reviews we’ve received on Trustpilot.

What affects being approved for car finance with poor credit?

We are happy to consider providing car finance to people who have missed payments or have a less than perfect credit history. However, if you have fallen behind on repayments on other credit agreements, it would be in your interest to do everything you can to get the repayments up to date quickly in order to improve your chances of being accepted for car finance with bad credit.

Do you currently have an IVA (Individual Voluntary Arrangement)? If so, we will need written confirmation from your Insolvency Practitioner that they are happy for you to borrow again. If you have had an IVA in the past which has been settled, then you are welcome to apply for our car finance.

If you are currently in bankruptcy, unfortunately, we are unable to help at the present time. Our guides section, features articles on how to manage debt, helpful tips to improve your credit rating and general information about the poor credit used car buying process, so keep an eye out for these articles, which may be of help to your current financial situation. If your bankruptcy has been discharged, then we will be happy to consider you when you apply for car finance.

If you have an outstanding CCJ, that does not mean it is the end of the road when it comes to applying for bad credit car finance, as you can still apply for car finance with us, and we can review the application.

characters next to icons symbolizing credit evaluation for car finance: a question mark, credit score meter, wallet with pound currency, approved stamp, and a calendar marking important dates for individuals with poor credit history seeking approval.

What can I do to improve my chances of getting car finance with bad credit?

Having a poor credit file doesn’t have to be the end of the world.

Here are a few simple things to consider if you want to understand how to get car finance with bad credit – and boost your chances of getting a hire-purchase agreement on a used car from our nationwide network of dealerships.

These will not only improve your chances of getting a car right now, but also could set a foundation for improving your credit file to a desirable level in the future.

Fix errors on your credit file

The first thing you should look at when considering how to improve poor credit is your credit file itself. You can get access to your full credit history via any of the three major CRAs previously mentioned – the Money Advice Service offers a detailed guide of how to check your credit report. Once you’ve got access, you’ll be able to understand and identify the problem areas in your report, and from there you can consider how to make improvements.

Did you know that one in three (29%) UK adults surveyed found mistakes on their credit report? That’s according to Royal London. It could be an incorrect address, a payment wrongly labelled as missed or even a sign that someone applied for credit in your name. If you spot a mistake, you should always dispute this with a lender or credit reference agency.

Get on the electoral register

A quick and easy way that may boost your chances of getting car finance in the UK with bad credit, is to sign up to the electoral register. This means a lender can prove who you are and where you live. It can also suggest that your current situation is stable.

Make your repayments on time

Do you have a credit card or personal loan already? It’s not necessarily a barrier to getting car finance with bad credit – as long as you’re keeping on track with your repayments. This shows a lender can trust you to pay back what you owe on time. You should be absolutely sure you can keep on top of all your repayments if you need to buy a car but have bad credit. Our car finance calculator can show how much your monthly payment could be if you apply to Go Car Credit.

Linked to someone with bad credit?

Do you have any financial links to others that you no longer need? For example, an old joint account or mortgage from a previous relationship? If you do, and the other party involved has poor credit themselves, this may have dragged you down as well.

You can get these black marks removed from your file by issuing a notice of disassociation. Your CRA will need to do some checks first, but once cleared you’ll no longer be linked financially to a negative connection.

Top tips for rebuilding poor credit

What is your credit score?

First, it’s important to know just what a credit score is – and how it’s worked out. Your score is a number that is based on your credit report. This is like your financial CV – it includes all your bill payments, credit applications or even things like County Court Judgements. In many ways, your score is an ‘at-a-glance’ snapshot of your credit history. But you should be aware that it can differ depending on the lender or the credit reference agency. There are three of these in the UK and each one can use different information about you to give you a score.

You can find out your credit score and review your credit report from one of these credit reference agencies:

Why is your credit score important?

Having a bad credit score can mean you only have access to specialist car finance lenders with higher APR than mainstream lenders such as your bank.

If you work on improving your credit profile, by keeping up on your poor credit loan repayments and other credit commitments, you may be able to access lower APR credit options for a range of services in the future such as:

With some lenders, your credit score can be the difference between getting car finance – or not. The higher your score, the more likely it is you’ll be accepted. That’s because it shows you have a good history of using credit. It makes it more likely that you’ll pay back what you borrow. If your history is less-than-perfect, this can be known as bad credit. It’s more common than you think too. But it can also put some lenders off. That’s not the case at Go Car Credit, though. We want to help you get car finance – even with bad credit. Our car finance calculator can show you how much you could be paying on one of our agreements with our interest rate. Don’t forget – bad credit doesn’t have to be permanent. You could benefit from a better score if you make all your payments on time, by doing so, you give yourself a better chance of getting car finance with bad credit.

How you could improve your credit score

Try to make sure that all outstanding credit is going down and regular on-time payments are being made.

Make sure you are on the electoral register. If you are not listed, it may be more difficult repairing your credit and may be perceived as less of a risk to lend to.

What is a good credit score for car finance?

As there are numerous credit reference agencies (CRAs) out there using different scoring systems, there is no set answer to this. We can, though, get an idea of what the three major CRAs might deem a good enough credit score for car finance. Remember, regardless of the agency – the higher your score, the better.

  • TransUnion score from a range of 0-710. A “good” score is considered to be 604-627, while a “fair” score is 566-603.
  • Equifax score from a range of 0-700. A “good” score is considered to be 420-465, while a “fair” score is 380-419.
  • Experian score from a range of 0-999. A “good” score is considered to be 881-960, while a “fair” score is 721-880.

How can I check my credit file?

The first step to maximising your chances of buying a car with bad credit is to stop for a second and actually check your score on your credit profile. As we mentioned above, there are three leading credit reference agencies in the UK – to check your score with each one for free, use the following services:

There are two very good reasons to check your credit file. First, it lets you see if anything on your report could stand in the way of you buying a car with bad credit. Second, you can double check that all the information is right. Even the smallest error could have a big impact.

Bad Credit Car Finance FAQ's

How does Hire Purchase work with bad credit?

We provide Hire Purchase car finance. This means when you come to Go Car Credit for this type of finance, you’ll be hiring your car from us, and your purchase will be secured against the vehicle itself. The car is legally owned by us, and you will be the registered keeper while you make fixed monthly payments across a set period, usually around 36 or 48 months.

Once you have paid the car’s value in full, plus an amount of interest together with the option to purchase and admin fee, the car will be yours.

Hire Purchase could be an ideal product if you have bad credit or don’t want to pay the full price of a car upfront. This lets you spread the cost with affordable monthly payments based on your realistic budget and affordability. Keeping up with your repayments could help you build your credit score – and boost your chances of being approved for other lines of credit in the future.

Will a bad credit car finance direct lender always perform a credit check?

All ethical car finance lenders specialising in bad credit loans should always perform a credit check. This is to make sure you can afford the monthly repayments on top of your other credit commitments that will appear in your credit history.

Why do I need to provide income and expenditure details for a bad credit car loan application?

An additional way for bad credit lenders to assess your affordability on top of other current credit commitments and bills listed on your credit history, is to ask you questions about all other expenses that are not shown there.

It helps the lender to identify your disposable income each month and this counts towards the total amount they are willing to lend you, and the actual monthly repayment amount.

Does getting a car loan with a bad credit lender mean my credit will be better at the end of my agreements?

Go Car Credit offer our existing customers the opportunity to apply for a renewal product with us.

As an ethical lender we will always assess the creditworthiness and affordability of all customers who make an application with us. Whether it is a new customer looking to improve their credit history or an existing customer looking to upgrade their vehicle.

If an existing customer does qualify to renew with us, they could be offered a lower APR on their next vehicle they wish to finance with us.

What paperwork will I need to provide?

Before deciding on your car finance application, we’ll first need to confirm your source of financial income. This means if you are employed, self-employed or your income is primarily from benefits, your car finance application paperwork may be different.

If you are employed, you may be required to supply 3 months’ worth of payslips.

If you are self-employed, you may be required to supply 3 months’ worth of bank statements.

For all car finance and loan applications, we are unable to accept tax returns or cash in hand payments as proof of income. All income of the car finance applicant must go into a UK bank account in their own name. However, we can accept proof of income into the bank of your spouse or partner, but they’ll need to be added to the car finance application.

If your income is made up of some benefits you will be required to provide proof of these through your bank statements or confirmation letters from your benefits provider.

Are there any preparations I can make to help my credit application?

We would suggest making sure any outstanding payments are settled and up to date where possible. Any recently missed payments could impact your ability to get a loan.

Determine what you can realistically afford to commit to each month with a car loan. Our finance agreements mean you are going to be committed to the vehicle repayment for 36 months at least.

It's also worth considering the type of vehicle that would be suitable long-term as well as any changing circumstances that may affect this.

Can a larger deposit improve my credit score?

Whilst a larger deposit will not improve your credit score, the lender may view a larger deposit as demonstrating your commitment to the car loan agreement. Plus, you are making the value of the vehicle compared to the size of the loan ratio much smaller, which could have an impact on your risk assessment by the lender.

Can you guarantee me a car loan?

Unfortunately, no, we cannot guarantee you will be approved for car finance with us. We need to carry out checks to ensure you can afford to repay the car loan and it is responsible to lend to you.

We would advise you to be careful when considering using a car finance company that promises guaranteed car finance to anyone in any circumstances. All lenders have approval criteria that have to be met before they can approve a customer for bad car finance.

How much does bad credit car finance cost?

That will depend on a number of factors, such as the amount you wish to borrow and the length of the repayment period as well as your own financial circumstances.

To give you an idea, check out our bad credit car finance calculator to work out what your monthly repayments might look like.

If you have a bad credit history and experienced issues with getting other forms of credit, you may be paying a higher interest rate.

Our interest rate may be perceived as high compared to other finance providers as we serve a specific sector of the motor finance market in the UK who are usually excluded from getting finance elsewhere.

We have provided these customers with the opportunity to get behind the wheel and be independent.

There are no hidden fees or other small print, and we never try to sell anything else alongside the finance package.

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