Are you worried that a poor credit history is going to stand between you and a new car? It can be so frustrating when you apply for car finance, a loan or credit card – only to be turned down. But it doesn’t have to be the end of the road. There are some helpful things you could do to boost your chances of getting the finance you need when you’re buying a car with bad credit.
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.
We can also help you learn what you can do to give yourself a better chance of being approved. Read on to find out how to get car finance with bad credit.
49.6% APR Representative – Subject to status and affordability
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.
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.
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.
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.
Did you know that as many as one-fifth of people have a mistake on their credit report? That’s according to Which? – the consumer organisation. 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.
A quick and easy way that may boost your chances of getting car finance 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.
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.
Are you linked to someone with bad credit through an old joint account or shared mortgage? It could be harming your chances of buying a car with bad credit yourself. You could however, get a ‘notice of disassociation’. This tells lenders you’re no longer tied to that other person.
You don’t need to just focus on ways to improve your credit file to increase your chances of getting car finance with bad credit history, there are some other useful things to consider:
Not got enough savings? Been turned down for a bank loan? You may be left wondering how to get a car with bad credit. At Go Car Credit, we offer a form of finance called hire purchase. This means the amount you borrow is secured against the car itself.
A bigger deposit up front, if you can afford to do so, could help reduce the amount you pay each month too.
But we know that not everyone is able to afford a big deposit. After all, millions of people in the UK simply don’t have savings to fall back on. That’s why we provide no deposit car finance on a huge choice of quality used vehicles – so you could still get a car, even with bad credit.
You can maximise your chances of getting car finance with bad credit if you’re realistic with how much you’d like to borrow too. This means choosing an amount and period that works for you and is suitable for your current financial circumstances.
At Go Car Credit, one of the things we’ll do when you apply for car finance is check that you can afford your repayments. If you’re realistic with how much you want to borrow together with your car choice, it could make the car finance process easier for you – because we’ll see that you’re not stretching your finances too far.
Use our online car finance calculator to see how we could help you get a car with bad credit.
Our aim is for the answer to this question to be “yes – you can get car finance with bad credit history, but it is still subject to status and affordability checks”. We know you might have a few doubts about whether you’re eligible. This can be especially the case if you’ve already been refused credit by another lender.
Still unsure? Our team can help. Call 01925 696 373 and we’ll be happy to answer any queries.
Buying a car with bad credit can feel like a stressful process if you’re not sure who you can turn to. We don’t believe the question of how to get car finance with a low credit score should be a hard one to answer.
We’re experts at helping UK motorists get a new car with bad credit. Here are just a few of the reasons why you can trust us to get you back on the road:
If you’re in the process of buying a car with bad credit, use our online car finance calculator to see how much you could borrow and what your monthly payments may be from Go Car Credit. You can adjust and re-adjust the amount and loan period as much as you want until you the numbers work for your current financial situation.
After that, the next step is to apply for car finance.
We know, however, that you might still have a question or two about how we can help you get a car with bad credit. If that’s the case, no problem. See if our frequently asked questions hold the information you need – or simply get in touch with our friendly team.