I have bad credit history, can I get car finance?

People may have bad credit for many reasons, but this doesn’t make it impossible to achieve being accepted for car finance. While having a good credit score may get you accepted by more lenders, there is something called bad credit car finance for those who are in more of a sticky situation financially.

What is bad credit car finance?

If you’ve been rejected by multiple lenders in the past due to a poor credit history, bad credit car finance acts as another form of loan offered by lenders specifically for those in these situations. Bad credit car finance may also apply to you if:

 

• You are in an Individual Voluntary Agreement (IVA)

• You have a County Court Judgment (CCJ)

• You’re self-employed

• You have experienced bankruptcy in the past

• You’ve had an IVA
   

Can I get car finance with no credit history?

You may have no record of a credit history if you’ve never borrowed a loan before. Because of this, it may be hard to get a car finance loan as lenders can’t see what kind of borrower you are, and therefore you may pose a risk to them. (For instance, if you repay payments on time.)

This means lenders see those with no credit history as having bad credit as they have no information on how you handle your finances. 

What shall I do if I have bad credit and want to apply for car finance?

Get your credit report

To get a clear picture of your current credit status, you should use a credit check service such as clearscore. This details information about current credit, any missed or late repayments and people you are linked to financially.

It’s important to make sure all your personal information is up to date too, as this assists lenders with credit checks and prevents the prospect of fraud.

Improve your bad credit score

People with a poor credit history may find that lenders offer them higher interest rates or poorer lending options. Some may refuse to lend to you altogether. Fortunately, there are ways you can improve this score over time, increasing your chances of getting car finance. Here are the main ways:

-File a notice of dissociation if you share an account with someone who is in bad credit. After some checks, credit reference agencies should be able to remove this person from your file.

- Keep up with regular repayments to show lenders you’re financially responsible.

-Register on the electoral roll. Credit lenders will check your identity against this when you apply for credit, so being present on the electoral roll makes this much easier for them to confirm you are who you say you are, as well as eliminate the risk of fraud.

- Reist making lots of applications at the same time, as every time you’re rejected, this will be visible to lenders and decrease their trust in you.

How to apply for car finance with bad credit 

The first place to start would be to use a car finance calculator to find out an estimate on what our monthly repayments would be alongside your budget and deposit placed on your car.

When you’ve figured out how much is feasible to borrow, and for how long, then it’s time to get your quote, even if you have bad credit history or little to no credit history.

Our online finance checker is free to use and leaves no impact on your credit score. However, if you’d prefer to apply in person or over the phone, you can come and visit our car supermarket in Derby or you can call the Hilton Garage team on 01283 732527.

 

How Hilton Garage can help

As Derbyshire’s largest car supermarket, we not only specialise in quality cars but also finance packages with repayments to suit all budgets. We want to allow everyone the chance to get a new car, whether you’ve never taken out a credit loan before or if you’re experiencing credit problems.

-We only use soft search when conducting your application, which means it won’t affect your credit score

-We have relationships with many trusted lenders to open up your options and chances of being accepted for bad credit car finance

-We are experts in finance which means even if you have a poor credit history, we can help work with you to find a deal.