How You Can Get Bad Credit Car Finance

Interested in buying a new car? Have lenders rejected you in the past? Bad credit car finance could be for you! When you are looking to finance a car, you have three main options:

Having bad credit shouldn’t keep you from purchasing the car of your dreams. For people with bad credit histories and low credit scores, car financing is an option. And, you can purchase all kinds of vehicles with it. If you get in touch with one of our devoted brokers, applying online or over the phone is simple.

Here is a guide on bad credit car financing that outlines what it is, how it functions, and how to negotiate a decent price.

How Does Car Finance For Bad Credit Work?

Both conventional and bad credit car financing solutions function in the same way. Your odds of being approved for car financing are, however, decreased.

If your credit score is low, you will need to demonstrate to lenders that you can make timely monthly payments. This means that lenders will do a thorough financial check on you. They will be able to see that you can pay your monthly bills because of this.

Usually, lenders will ask for a deposit t have some kind of security to ensure that their money will be repaid.

What Is Good About Car Finance For Those With Bad Credit?

We could assist you if you want a new car but have bad credit. It operates similarly to standard auto financing. In other words, you will go through the same application process as someone with good credit would. However, you might discover that fewer lenders will work with you if you have poor credit. Although, some do accept people with poor credit histories. Lenders may also be able to come up with a payment plan for you if you’re approved!

Even if you’ve been turned down in the past, car finance for bad credit allows you to get a car. It’s crucial that you don’t submit numerous applications for auto financing quickly. Your credit score will consequently decline, making it more challenging to obtain auto financing.

How Can I Get The Best Bad Credit Car Finance Deal?

It’s important to comprehend the terms of the loan when seeking the best bad credit car finance option. So you don’t miss out.

  • The greatest offer is car financing with a low APR and a strong credit rating. It could be preferable if you take out a loan with a higher APR if you can’t afford the car you desire. Take into account if paying more in interest each month for something like this is worthwhile. Keep in mind that you will probably receive a loan with a higher APR if you have poor credit. which contrasts with clients who have higher credit scores. You’ll probably encounter various rates.
  • In essence, the deposit serves as insurance against missing a payment. By making a deposit, which lenders deduce from the total value of the car, meaning you can reduce your repayments. However, it is feasible to obtain no deposit bad credit auto financing. Lenders might increase your monthly payments to make up for the lack of a down payment. However, if you have a high credit score, lenders are more likely to approve you for this sort of car financing. Even while there are lenders who will provide low credit vehicle loans with no deposit, only some do. However, since not all lenders provide customers with this choice, this differs from lender to lender.

Can I Get A Car Loan If I Have No Deposit And Bad Credit?

You might be able to get bad credit auto financing if you don’t have a deposit. There are a variety of options for paying off your auto loan. You could pay it off by:

  • Get a guarantor: If you have a trustworthy friend or relative, they could serve as a guarantor for your application for car financing. It’s ideal to find a guarantor that has a very high credit score. They serve as loan security for you. If you are unable to pay the vehicle’s payments, they would be in charge of making repayments. But don’t worry, we also provide car finance for bad credit options for those without guarantors.
  • Dip into your savings: You could save up any spare cash until you have enough to finance your car outright with no down payment!

Other Ways Are…

  • Use your income: When lenders take your circumstances into account, you might still afford vehicle financing with your income! Nevertheless, we recognise that depending on your circumstances, you can find it challenging. For the majority of financial situations, our dedicated brokers could help you secure your ideal car. 
  • Apply for joint finance: Joint financing means you share payment obligations with another person, much like having a guarantor. This choice is likely to be more beneficial for you if you make a deal with someone who has a good credit score. It also implies that you can apply for lower costs. You must fulfill certain requirements in order to apply for shared car financing. For example, you may need to live at the same address as with who you will share the agreement. Our brokers will be able to see which requirements need to be met for specific lenders. You will be in a better position to apply for car finance for bad credit after doing so.

What Should I Do If I Do Not Have A Credit History?

You might be able to get car finance even if you have no credit history. However, it’s crucial to keep in mind that fewer lenders will approve you. Lenders treat borrowers with no credit history and those with bad credit ratings equally. Lenders will place you into this category when you start the application process. So, when it comes to vehicle loan offers, what you receive could be comparable to what others with poor credit will receive. Lack of a credit history won’t demonstrate this to lenders; nevertheless, your credit history does. And others will see you as someone who can’t demonstrate their ability to repay.

Does Anything Change If I Have An Iva?

Making payments to your previous creditors via an Individual Voluntary Agreement (IVA) allows you to do it at a cost you can bear. Lenders might not approve you for car financing because the payment plan is binding. You must get approval from your IVA supervisor before taking out a new loan.

IVAs lower your credit score, which increases the likelihood that lenders will turn you down for auto financing. Nevertheless, lenders might view you as dedicated to paying off your debts because of the nature of an IVA. Keep in mind that you might still acquire auto financing if you have an IVA. Discuss car financing with your IVA supervisor before contacting one of our brokers. Just make sure you have permission beforehand! Our crew will do their best to help you get your ideal car!

What Effect Will A Ccj Have On My Chance Of Being Approved For Car Finance?

A County Court Judgement (CCJ) is a high court decision that demonstrates your debt. When someone asserts that you owe them money and you haven’t responded. A CCJ reduces your credit score since it demonstrates that you haven’t been able to make payments to others.

Unfortunately, whether or not you have paid it in full, it remains on your credit report for 6 years. You may find it more difficult to get car finance loans as a result of this. Lenders view you as less trustworthy than borrowers with good credit. Even if a CCJ has harmed your credit score, you can still qualify for car finance. If you completely pay off your CCJ, you can improve your chances of being approved for auto financing.

Lenders evaluate customers’ financial situations with CCJs differently and will take certain factors into account.

They are:

  • The amount of outstanding debts you still owe
  • The length of time you haven’t paid off your debts
  • The different kinds of debts you have

There is still hope if you have an unpaid CCJ against you. You might still secure approval on your car finance application. Due to our access to a network of lenders, we advise using a brokerage service when submitting your application. Although it’s not impossible, we can’t guarantee that you’ll get approval for car finance for bad credit if you have a CCJ.

What Car Financing Option Is Best For Me If I Have A Bad Credit Score?

You could qualify for a poor credit vehicle loan if you have a weak credit history. We strive to offer automobile financing choices to everyone, taking into account the majority of financial situations.

To find out if you qualify for vehicle financing with bad credit, get in contact with one of our dedicated brokers.

If you apply to get car finance for bad credit with us, you could be accepted even if you have been rejected elsewhere.

What Conditions Apply To Poor Credit Car Finance?

If you are older than 18, lenders will accept you for car finance for bad credit. Because you must be 18 to take out a car financing loan. Additionally, you must reside in the UK and earn a regular income. Even if your credit score is low, you may be accepted by some lenders. Your chances of being accepted will also rise if you have enough cash to put a down payment on the car you want. especially if your credit is poor.

Which Dealerships Offer Bad Credit Auto Financing?

To offer any legitimate car finance loans, dealers with Financial Conduct Authority (FCA) licences can collaborate with brokers or lenders. This covers credit-challenged loans. If the dealer knows the lender will pay them, they are more willing to sell you a car because the lender assumes the risk.

We could assist many people in a variety of financial situations thanks to our network of trusted lenders. To assist you to get your dream car, we will collaborate directly with them.

How Long Does The Poor Credit Car Finance Application Process Take?

When you apply for a loan, lenders will ask you for some basic information. Name, residence, and employment information are all part of this. The lender you apply via and your financial situation will affect your choices. In order to get you the best deal for your financial circumstances, our brokers will attempt to match you with a lender.

Applying for a poor credit loan could be finished in a matter of minutes and in less than 24 hours. If you’re fortunate enough to be accepted within this time, then congrats! You just saved yourself loads of time!

Don’t get upset if your application is rejected after submission. People with bad credit or no credit history could get a car loan from one of our numerous lenders.

For the majority of financial situations taken into consideration, our team are here to assist you in applying for car finance. Find out what pricing might be available to you by getting in touch!

Do You Offer Low Credit Car Loans For New Cars?

Absolutely!

A newer car will typically cost extra to finance. However, there aren’t many differences between financing a new and used car. There’s a higher probability of being approved for car financing exists if you can demonstrate your ability to make payments.

To Finalise

Have you considered securing car finance for bad credit? It could appear frightening. However, it’s not as hard as you might think if you do some planning and research. Before you get in contact with our team members, we recommend you get your finances in order.

When submitting an application with Bright Motor Finance, feel free to ask any questions you may have regarding car finance. They could provide you with a wealth of information to aid in decision-making. Additionally, they could help you get the best offer possible by guiding you step-by-step through the application procedure.

Request a quote from us to learn what might be available to you.

Looking For First-class
Financial solutions?

Get a Free Quick Quote.

Applying with us takes less than 60 seconds. We could get you on the road in a matter of days!

Rates from 10.9% APR. Representative APR 19.9%