Compare Bad Credit Car Finance

Yes, you can still get a car loan with a bad credit score. A lot of car loan providers in the UK help people who have bad credit. Even if your credit score is not good, you can get approved for an auto loan. These car loan providers know that people face money problems, so they work with people who have bad credit scores.

• CCJs (County Court Judgements)
• Defaults or late payments
• A poor credit rating or bad credit history
• No credit file or thin credit profile
• Self-employed or variable income

Used car finance is also available for people with lower credit scores if the application process shows that you can make the loan payments. Brokers will look at your current financial situation, and not only at your past credit issues.

There are several types of car finance available to people with bad credit, each with its own pros and cons. Your options will depend on your financial situation, deposit amount, and whether you want to own the car outright or return it at the end of the term.

Hire Purchase (HP)

You own the vehicle once you make the last payment. This is good for people who have a steady income and want to keep the car for a long time.

Personal Contract Purchase (PCP)

Get lower car loan payments each month when you choose to make a balloon payment at the end of your term. This car loan is good for people who want new cars often and like to change cars on a regular basis. You can get the car you want, pay less each month, and have the option to move to a new car later. This way, your loan payments stay easier to manage while you enjoy driving your choice of car.

Personal Loan

Get the money you need at the start. Buy the car from a dealer or a private seller. Then, pay back the loan payments each month with a set amount.

Joint or Guarantor Loan

Someone else who has a higher credit score can co-sign your agreement. This can help you get a better approval rate.

Car Finance with Benefits

Lenders may let people who get Universal Credit or other benefits apply. But, you have to meet the minimum income requirements. You also need to show that the loan will be affordable for you.

We help you get in touch with UK brokers you can trust, like Zuto, Match Me, and CarFinance 247. These companies give you access to a big group of lenders.

Benefits:

• You only need to fill out one simple application.
• The system will only do a soft search.
• Your car loan payments are set up to match your income.
• Get real quotes from regulated brokers.
• There are bad credit auto financing options.
• You can choose second chance or direct lender opportunities.
• You get access to used vehicle dealerships anywhere in the country.

Many brokers work with lenders who know the different money problems people can have with bad credit. Our partners can help you get the best car loans for your needs.

Online car finance brokers can often get you a better deal than what you may get if you go to a dealership yourself. This is true for people who have bad credit.

Online Finance:

• Fill out one form to see offers from many lenders.
• It is easier to look at and compare the loan terms.
• You may have higher chances to get approved.
• Get fast results by using soft search tools.

Dealership Finance:

• You can only pick one lender.
• It is not easy to see all the costs.
• A bigger deposit may be needed.
• Most of the time, if you have bad credit, you will get a higher interest rate.

The best ways to get approved are to work with brokers who know about poor credit and give flexible auto financing options. These people understand your needs. They help you find auto financing that fits your situation. Their knowledge may make it easier for you to get a car loan, even if your credit is not good.

• Get your name on the electoral roll.
• Make sure to fix any mistakes in your credit file.
• Pay off small debts if you have them.
• Try to save up for a deposit.
• You can apply with someone else or get a guarantor.
• Pick a car that is not too expensive.
• Use tools like a car loan calculator to help you make a good budget.

• Bad Credit Bike Finance: You can get a loan for a motorbike or scooter even if you have bad credit.
• Van Finance: Both work and personal vans are covered.
• Electric Vehicle Finance: Hybrid cars and electric vehicles are included in this plan.
• Refinance or Negative Equity Loans: You can change or swap your current car loan with this option.

Correct as of 28 July 2025