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How to Get Car Finance with Bad Credit

Posted on 29th September 2021
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How to Get Car Finance with Bad Credit

Having a car is likely a necessity in your life, but buying a new car is a huge expense. If you aren’t able to pay out a lump sum, you’ll want to buy your car on finance. But those with bad credit may have been rejected by some lenders when applying for finance.

Our guide can help you if you’re buying a car with poor credit and still want access to finance deals.

Check Your Credit Report

There are many reasons you might have a lower credit score. You might have CCJs associated with your name, you might have defaulted on a loan, or you might have declared bankruptcy. It might be that you just might not have much credit history at all, either because you’re young or because you’re new to the country.

You should start by checking exactly how “bad” your credit score is by looking at your credit report. Money Saving Expert have a detailed guide to checking your credit score for free, by avoiding the companies that will charge you a one-off fee or monthly subscription. When you do this, you should make sure all your details on the reports are correct or update them if necessary.

Improve Your Credit Rating

There are a few ways you can improve your credit rating. One way is to disassociate yourself with anyone who has bad credit. It may be that you had a joint account with an ex-partner or family member who has bad credit themselves. Having this association will also bring down your own credit score. Notify the credit reference agencies to separate yourself from this person so they can remove them from your file.

An easy way to improve your credit rating is to ensure you’re registered on the electoral roll. You can do this any time on the Government website. Credit reference agencies use the electoral roll to confirm name and address details, so being registered will be a huge help. If you’re not eligible to vote in the UK, you can ask the credit reference agencies to add a proof of residency to your file, like a utility bill or UK driving licence.

Make sure you keep up to date with your loan and credit card repayments, to ensure your score isn’t brought down any further. You should also cancel any credit or store cards that you no longer use – having access to too much credit, even if you don’t use it, can have a negative impact on your score.

Use a Specialist Car Finance Lender

The easiest way to get car finance if you have poor credit is to use a specialist car finance lender, like Euphoria Finance. We’re a car finance direct lender, which means we can offer the best poor credit car finance deals. We assess every situation on an individual basis so we can tailor an affordable car finance deal to your needs. Because we can carefully evaluate the circumstances of each of our customers, we are able to accept more people for car finance than many other lenders.

Because we’re a direct lender of car finance, once you have a car finance quote, we can quickly approve you. Alternatively, you can call us on 01282 509609 and one of our expert advisors will be able to help you.

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