Fair credit
car finance

What is a fair credit score?

Lenders use credit scores to assess how well you manage borrowing, and a fair credit score typically falls between 580 and 669 on the FICO scale. In the UK, credit reference agencies—Experian, Equifax, and TransUnion—each use their own scoring models, so your score may look different depending on where you check.

Several factors contribute to a fair credit rating, including:

• Missed or late payments – Paying bills after the due date can negatively impact your score.
• Frequent address changes – Moving often may make lenders view you as less financially stable.
• Employment history – A steady job with regular income can improve your credit profile.
• County Court Judgments (CCJs) – Legal action for unpaid debts can lower your score, but its impact reduces over time.

Lenders look at more than just your credit score when assessing car finance applications. A larger deposit, stable income, and affordability checks can improve approval chances and help secure a finance deal that suits your budget.

Will I get car finance with a fair credit?

In most cases, yes, you can get car finance with a fair credit score, but approval depends on more than just your credit rating, as lenders assess your credit history, employment status, and affordability before making a decision. At Carboom, we help individuals with fair credit find car finance options that suit their needs.

Here are the key factors that influence approval:

• Credit history – Lenders look at past borrowing behaviour, missed payments, and outstanding debts.
• Employment status – A stable job and regular income increase the likelihood of approval.
• Down payment (deposit) – A larger deposit lowers the amount borrowed and makes finance more affordable.
• Affordability checks – Lenders determine whether your income covers monthly payments.

A fair credit rating does not stop you from getting car finance, but lenders may charge higher interest rates to cover the perceived risk. You can improve your chances by increasing your deposit amount, maintaining stable employment, and showing a consistent income status. A soft search lets you check your eligibility without affecting your credit score. This gives you a better idea of your options before applying.

Get a free, no-obligation quote today and explore your options without affecting your credit score.

How to get car finance with a fair credit rating?

You can still get car finance with a fair credit rating, but you have to take the right steps to improve your chances of approval. By preparing in advance and comparing your options, you can find a deal that suits your budget.

Follow these steps to improve your approval chances:

1. Check your credit score – Start by reviewing your credit report with Experian, Equifax, or TransUnion. This helps you understand where you stand and correct any mistakes that could affect your application.
2. Use a soft search – Carboom offers a soft search, which allows you to check if you qualify for finance without affecting your credit record. This helps you explore options safely.
3. Assess your budget – Work out how much you can afford in monthly payments, considering other financial commitments.
4. Compare different offers – Interest rates and finance terms vary between lenders. Looking at multiple car finance deals helps you find the most affordable option.
5. Provide a larger deposit – A higher deposit reduces the amount you need to borrow, which may lead to better interest rates and lower repayments.
6. Show stable income – Lenders want to see that you can afford repayments. A regular job with a steady income improves your approval chances.

At Carboom, we help individuals with fair credit find car finance options that work for them. Get a free, no-obligation finance quote today and check your eligibility without affecting your credit score.

How can I raise my fair credit score and lower my monthly payments?

A higher credit score and lower monthly payments improve your chances of securing better car finance deals and managing repayments more effectively.

1. Make all payments on time – Late or missed payments can lower your credit score and make lenders see you as a higher risk. Keeping up with credit cards, loans, and utility bills shows responsible borrowing.
2. Check your credit report for errors – A full review of your credit report with Experian, Equifax, or TransUnion helps you identify mistakes that could affect your score.
3. Register on the electoral roll – A confirmed listing on the electoral roll helps lenders verify your identity and address, making it easier to approve applications.
4. Reduce outstanding debts – A lower debt balance improves your credit score and makes repayments more manageable. Keeping credit usage below 30% of your limit may also increase your rating.
5. Avoid too many credit applications – Each finance application leaves a mark on your credit file. Multiple hard searches in a short time can lower your score and make lenders cautious about approving new credit.

Ways to lower your monthly payments

1. Increase your down payment – A higher deposit reduces the total amount borrowed, leading to lower monthly instalments and possibly better interest rates.
2. Choose a longer loan term – Spreading repayments over a longer period reduces your monthly costs but may increase the total amount payable due to interest.
3. Compare lenders and finance offers – Not all lenders offer the same interest rates or repayment terms.
4. Improve your credit score – A higher credit rating makes you eligible for lower interest rates, which reduces your overall borrowing costs.

Carboom helps individuals with fair credit find car finance options that match their budget. Get a free finance quote today and explore offers that suit your needs.

What are the benefits and drawbacks of fair credit car finance?

If you have a fair credit score, you can still access car finance, but it’s important to understand both the advantages and potential challenges.

At Carboom, we help you find fair credit car finance deals that match your needs. Get a free finance quote today and explore your options without affecting your credit score.