Refused Car Finance

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

Had an application for car finance turned down?

Finding funds for a new vehicle can be tough. From bad credit to the total cost of your ideal car, there are several reasons why a mainstream lender might say no. But that shouldn’t mean you have to give up hope. Here at Go Car Credit, we help those who’ve been refused car finance in the past get back in the driver’s seat.

We’re poor credit car finance specialists – and this means you could get the support you need for the car you want even if you have a poor credit history. Our Hire Purchase deals on quality used cars let you spread the cost in affordable repayments. You could even rebuild your credit score, and you can apply online in a matter of minutes too.

So, if you’ve been rejected for car finance once or more times before, read on to find out why. We’ll also tell you what you can do about it and how to apply successfully with Go Car Credit.

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application tracker

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

Why have I been refused car finance?

It’s easy to feel helpless if you’ve been turned down for car finance, and you have no idea why. Many lenders don’t provide clear or detailed explanations – But there are several likely reasons. And it’s a good idea to find out more instead of continuing to make applications. Doing this could damage your chances further.

Credit profile

Being refused car finance because of bad credit is one of the most common reasons. Lots of things can impact your credit score – missing debt repayments, going over your credit limit, having an outstanding CCJ, declaring bankruptcy or holding a joint account with a partner with a low score.

Mistakes on your credit report and not being on the electoral roll can also hold you back.

Did you know that having little or no credit history can put lenders off too? A lack of borrowing in the past makes it harder for lenders to judge how likely you are to pay them back in future.


Lack of job stability is another reason car finance is refused. Have you changed jobs several times recently? Are you self-employed with inconsistent income, or on a zero hours contract? Each situation could impact how a lender views your application.


Lenders will look at your income and outgoings to see if you can cover the cost of a car finance agreement. They have a duty to lend responsibly and many have strict criteria as a result. Your choice of vehicle could play a key role in their decision-making process too.


What can I do if I’m rejected for car finance?

Thankfully, there are still plenty of ways you can improve your chances of getting a new car on finance. One of the best options is to speak to an alternative provider such as Go Car Credit. We don’t have the same strict criteria as some mainstream lenders, and we’ll do our best to give you the green light, even if you’ve been refused car finance in the past.

Beyond that, here are five tips to help you get back on the road and secure a better deal:

  • Find out why: Ask your lender why your application was rejected. Any information helps, and they should tell you which credit agency they used. When they do, you can check your report for obvious mistakes and ask for them to be corrected.
  • Wait between applications: Try to avoid applying to lots of other lenders in the meantime. Doing this several times in a short window can make you appear desperate for cash, and any rejections will hurt your credit score further.
  • Improve your credit score: Keep payments on existing credit agreements up to date, or pay debts off altogether. Registering for the electoral roll in your local area also helps, as this shows that you’re settled.
  • Consider a cheaper car: Lowering your expectations and choosing a cheaper car can improve your affordability in the eyes of a lender. In 2021, the UK saw finance deals being used to purchase 2.1 million vehicles, accounting for 23% of the overall 9.2 million vehicles acquired during that timeframe. This underscores the significant role of finance options in the acquisition of both new and pre-owned cars.
  • Choose a Hire Purchase deal: Hire Purchase means the loan is secured against the car itself. This reduces risk for the lender, and could be a more straightforward option for you too.

Will my repayments be higher if I’ve already been refused car finance?

Car finance lenders usually base their terms and rates on factors such as your credit score and the size of your deposit. We appreciate that anyone can get into financial difficulty or be rejected for car finance, however. That’s why we aim to base our offer on your personal circumstances and find a solution that’s right for you.

We look at your application individually and give you an answer from an experienced professional on our team, not just a computer-generated score. If it’s a yes, we’ll create a flexible repayment plan that’s tailored to you and will be manageable moving forward.

You can use our bad credit car finance calculator to estimate what your monthly repayments could be in the meantime.

While we’ll still consider your application if you have bad credit, taking some of these steps to improve your credit score mentioned above could get you a better deal. We also share regular money management tips in our guides section, to help make your dream car a reality!


Why choose Go Car Credit if I’ve been turned down for car finance?

Many of our customers have been previously refused car finance because of their poor credit history. Even if you have a low credit score, county court judgements (CCJs), defaults, payment arrears, an IVA agreement or have previously been bankrupt, we could still get you back behind the wheel.

Here are just some of the reasons to choose Go Car Credit:

  • We could say yes: We’ll review your application individually and look beyond your credit score or other challenging personal circumstances.
  • We lend responsibly: We’re regulated by the Financial Conduct Authority (FCA) and will work with you to create a manageable repayment plan that’s tailored to your budget.
  • We’re highly recommended: Our customers have shared a multitude of positive reviews on Trustpilot, praising our friendly staff and responsive service.
  • We make things straightforward: Car finance can seem daunting, but we do our best to make the process simple and hassle-free.

If you’ve been refused car finance you could still drive away with a new car from any dealership in our UK network including Newcastle, Leeds, Glasgow, Portsmouth or Manchester. We want to give you all the confidence you need to go ahead, so call our experienced team on 01925 696 373 if you have any extra questions.

How does car finance work with Go Car Credit?

Have you been turned down for a traditional car loan in the past? Secured and unsecured loans can be harder to get approved for as they rely on your personal assets or credit score. At Go Car Credit, all our deals are offered via Hire Purchase, a type of finance that’s secured by the car itself. This reduces the level of risk and improving your chances of being accepted.

You’ll pay manageable monthly instalments to hire the car for a set amount of time until you’ve paid enough to own it outright. This will cover the overall cost of the car, plus the amount of interest that we’ll agree with you upfront.

If you become unable to keep up with your repayments at any point, we could repossess your car, though we’ll do our best to help you avoid this happening.


How do I apply?

Applying for a traditional loan can feel intimidating at the best of times, but even more so when you’ve been declined car finance in the past. The good news is that we don’t use the same strict criteria as most mainstream lenders, and our car finance process couldn’t be any easier.

You can get the wheels turning by filling out our short online application form. Our team will review it and give you a credit limit if you meet our criteria. Next, we’ll help you choose your ideal vehicle through one of our approved dealerships.

All that’s left is to sign the paperwork and drive away with your new car!

Apply Now

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