Bad credit car finance

Search for a car finance deal, even with a poor credit rating

Rates from 19.9% APR. Representative 29.9% APR.

Representative example: borrowing £6,500 over 5 years with a representative APR of 29.9%, an annual interest rate of 29.9% (Fixed) and a deposit of £0.00, the amount payable would be £196.34 per month, with a total cost of credit of £5,280.14 and a total amount payable of £11,780.14. This is representative of CarFinance 247 Limited customers.

We've partnered with CarFinance 247 to offer the best finance deals from their panel of lenders. CarFinance 247 is a credit broker not a lender.

  • Find the right deal for you with our trusted partner CarFinance 247
  • Get a finance quote without affecting your credit score
  • Make monthly repayments with no final lump sum to pay

Find car finance with and CarFinance 247

We’ve partnered with Carfinance 247 to find you their best deal from a range of car finance lenders. Their service is free to use and getting a quote doesn't impact your credit score. A hard credit search only happens when you apply for a deal.

If you've already found your next car and just need the finance deal, they can help set it up for you. If you're still looking for your dream car, use their car search to see over 100,000 cars from across their trusted dealer network.

Once you’ve requested a quote, you get a call from one of CarFinance 247’s account managers to discuss it in more detail. Alternatively, you can arrange to have them call you at a more convenient time.

CarFinance 247 searches their panel of trusted lenders to present you with a quote over the phone with the best overall value. Account managers can also discuss alternative options to fit your circumstances over the telephone.

CarFinance 247 customers rate them 4.9/5 on Trustpilot*.

*Correct as of December 2023

Can I get car finance if I have bad credit?

Yes, you can still get car finance if you have bad credit, but you may have limited options. You might pay high interest rates due to your low credit rating too.

How does bad credit car finance work?

There isn't a specific car finance product if you have bad credit. It's just standard car finance for those with a low credit score.

Car finance is a way of buying a new car that lets you spread the cost across monthly instalments. You borrow from a finance company to buy a car, then pay them back in regular payments.

Like any kind of borrowing, car finance uses your credit rating to work out how much you have to pay back including interest.

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What are the different types of car finance?

  • Hire Purchase (HP). HP requires a deposit, usually around 10% of the car's value. After that, you make payments every month to the finance company until the car has been fully paid off. After the final payment, the car is yours. This type of finance can last between 12 - 60 months.

  • Personal Contract Purchase (PCP). Like HP, PCP usually requires a deposit to start, followed by monthly payments. PCP deals can last from 36 - 60 months. When your repayments back to the finance company come to an end, you have a few options to choose from including, paying a ‘balloon payment’ to fully own the car. Returning the car to the finance company or exchanging the car for a different one on a new PCP deal.

  • Car loan. Also known as an unsecured loan, this lets you borrow a lump sum that's paid back monthly. This is over a term lasting between 12 and 60 months (or longer). But this can depend on your specific payment plan.

All 3 of these types of car finance should be available to you, even if you have bad credit. You might find that some lenders charge higher interest, or put certain restrictions on the deal.

What do I need to apply?

To help speed things up, it helps to have this information ready:

  • Your name

  • Your date of birth

  • Your occupation

  • Your phone number

  • Your email address

  • Your address

  • Your monthly income before tax

  • How much you want to borrow

Find the right car finance deal for you

Representative 29.9% APR

Car finance calculator

Knowing your budget in advance could help you find a deal that suits you best. Our car finance calculator is a useful way to work out how much you might need to borrow, or how much your monthly payments might be.

  • Tell us how much money you want to borrow (or how much you want to pay each month)

  • Select how many years you need to repay it

  • Use our APR slider to see how different interest rates might affect your repayments.

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How do I get a cheaper deal?

Even if you have bad credit, there are still options to help you get a cheaper car finance deal:

  • Increase your deposit. Putting down a larger deposit for your car is a good way to show you're less of a risk to lend to. The reduced risk for the lender might mean you're offered a better deal.

  • Increasing the term of the contract. The longer the loan term, the smaller your monthly payments are. But be aware, the longer the contract, the more you're likely to pay overall.

  • Choosing a lower-spec vehicle. The cost of each finance deal is likely to be different depending on the specific model. So if you're able to downgrade your choice of car, this might help keep your costs down.

What our car finance expert says

Having bad credit can be tough, especially in the current climate. But if you’re looking for car finance, we're here to help. Our partner works with a range of car finance lenders, and they do their best to find one with the right deal for you. Having bad credit might mean you have to pay more though, so be sure to weigh up the costs carefully before committing

Find the right car finance deal for you

Representative 29.9% APR

How does my credit score affect my chances of applying for car finance?

Your credit score is useful to lenders because it tells them how likely you are to keep up with your repayments.

A low score might indicate some level of risk. You may have missed payments in the past, or have multiple debts at once.

It could just be that you've never had credit before, so you don't have a score.

Lenders look at this level of potential risk when working out what kind of car finance deal to offer you.

Your credit score is important but it isn't the only factor lenders look at when you apply for car finance.

Working to improve your credit score means you're more likely to get a better deal. Here are some things you could try to improve your credit score:

  • Register for the electoral roll

  • Ensure your information is correct and up to date

  • Pay off outstanding debts on time

  • Check the credit status of people you're financially linked to

Car finance guides

Warning over mis-sold car finance deals -

Experts claim thousands of car buyers could have been mis-sold finance packages by their motor dealers. We explain how you might have been affected.

Read More

Can I sell a car with outstanding finance? -

Want to sell your car but you’re still paying for it? We explain when and how you can sell a car that has outstanding finance.

Read More

Voluntary termination: how to end PCP early -

Looking to end your car finance agreement now and potentially get a new contract? If you want to cancel a HP or PCP deal early, here's what you need to know.

Read More’s car finance journey is provided by CarFinance 247. Car Finance 247 is a trading name of CarFinance247 Limited. Registered office: Universal Square, Devonshire Street North, Manchester, M12 6JH. Registered in England. (Registration Number 06035525). CarFinance247 Limited is authorised and regulated by the Financial Conduct Authority.

Car Finance 247 Limited is a credit broker, not a lender and looks to find the best deal from their panel of lenders. Car Finance 247 Limited earn a commission for providing their services, but this does not influence the interest rate you’re offered in any way.