Bad Credit Car Finance
No Paperwork & Fees

Can I get car finance with bad credit?

Yes, you can still get car finance with a bad credit score, but it helps to approach it wisely. If you apply for finance on a car that’s too expensive or uncommon, lenders may be less willing to approve the loan. The key is to choose a car that fits comfortably within your budget and financial situation. Focus on what you can realistically afford to pay each month.

At Carboom, we assess each application individually to match you with the best possible deal. As a broker, we work with lenders who specialise in bad credit car finance, and we check your credit to ensure you qualify. While there’s no minimum credit score required, lower scores can lead to higher interest rates.

Before sending your application to lenders, we run a ‘soft search’ that won’t affect your credit score. This allows us to check your income and ensure you’re likely to manage the repayments. Once this is done, we forward your application to our panel of lenders, with most decisions coming back within 24 hours.

What is considered a bad credit score?

A bad credit score typically reflects past financial difficulties, but what counts as “bad” can vary depending on the credit reference agency. In the UK, the three main credit reference agencies – Experian, Equifax, and TransUnion – each have their own scoring systems and ranges.

What is the cost of a bad credit car loan?

Here’s a breakdown of how much a bad credit car loan can cost:

Bad credit makes car finance more expensive due to higher interest rates. With no deposit and a 19.9% APR, you’ll pay almost £4,000 in interest over four years.

What causes you to have bad credit?

Bad credit can happen for many reasons. Lenders look at your credit history to decide if you’re a reliable borrower. Several factors can lower your credit score, including:

• Missed payments – Falling behind on a credit agreement can quickly damage your score.
• Bankruptcy – This can stay on your credit file for years and severely impact your ability to get finance.
• County Court Judgements (CCJs) – Legal action for unpaid debts tells lenders you’ve struggled to manage finances.
• Minimum credit card payments – Paying only the minimum each month can suggest financial difficulties.
• No credit history – Without any credit record, lenders can’t assess how well you manage debt.
• Wrong credit card choice – Using a card that doesn’t fit your spending can lead to unmanageable debt.
• Identity theft – Fraudulent activity on your account can harm your credit without your knowledge.

What documents do I need to apply for bad credit car finance?

Is it more difficult to get car finance because I have bad credit?

Having bad credit can make car finance a bit trickier, but it doesn’t mean you can’t get approved. Lenders are more interested in your current financial situation and whether you can keep up with repayments now, rather than just focusing on your credit score. By working with lenders who specialise in bad credit, you can boost your chances of finding a deal that works for you.

Pros and cons of bad credit car finance

Can I get car finance with no credit score?

Yes, you can get car finance with no credit score, but it can be a bit trickier. Lenders see no credit history as a risk because they have no record to show how you manage repayments. This doesn’t mean you’ll be denied, but you may face higher interest rates or need a larger deposit. Some lenders offer deals designed for people with no credit history, focusing on your income and ability to afford monthly payments. Building trust with lenders takes time but is possible.

How do I apply for bad credit car finance?

Applying for bad credit car finance is simple. Start with an online application and complete a soft credit check that won’t affect your score. Choose from tailored finance options based on your budget. Once approved, select a car and finalise the deal. The process is quick and straightforward.