Our analysts have researched the UK lending market and selected for you the best lending programs with competitive terms. Just follow the links in the table below and choose the offer, that suits you best.
Can I get vehicle finance with a score of 500?
A credit score of 500 is generally considered to be poor or very poor in the UK. While it may be challenging to get car finance with a credit score of 500, it's not impossible. Some lenders specialize in providing financing options for individuals with poor credit, but they may impose stricter terms and higher interest rates to offset the increased risk.
As an alternative, you can also take out a personal loan. Your possible expenses:
Personal loan calculations for 1 year (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 5,000 | 7.10% | 192 |
| 5,000 | 8.10% | 219 |
| 5,000 | 9.10% | 246 |
| 10,000 | 9.20% | 498 |
| 10,000 | 10.20% | 553 |
| 10,000 | 11.20% | 607 |
| 20,000 | 11.30% | 1,224 |
| 20,000 | 12.30% | 1,333 |
| 20,000 | 13.30% | 1,441 |
| 25,000 | 13.40% | 1,815 |
| 25,000 | 14.40% | 1,950 |
| 25,000 | 15.40% | 2,085 |
May I get a brand new car with bad credit?
Yes, it is possible to get a brand new car with bad credit in the UK, but it may be more challenging and may come with higher interest rates. Here are some options you can explore:
- Specialist lenders. Some financial companies specialize in providing financing options for individuals with poor credit scores. They may be more willing to work with you, but be prepared for higher interest rates.
- Co-signer loans. With a guarantor loan, someone with good credit agrees to be responsible for the loan if you default. This can help you secure financing at better rates.
- Hire purchase (HP) or personal contract purchase (PCP) allow you to pay for the car in installments over a fixed period. While they may be more accessible with bad credit, you might face higher interest rates.
- Consider a used car. Opting for a used car instead of a brand new one might increase your chances of getting financing with bad credit. Used cars generally have lower prices, making them more affordable.
- Improve your credit score. While this won't help you get a brand new car immediately, working on improving your credit score can open up more financing options in the future. This could involve making timely payments, reducing debt, and correcting any errors on your credit report.
What dealerships work with poor credit?
Several dealerships in the UK work with individuals who have poor credit. These dealerships often have special financing arrangements or partnerships with lenders who specialize in providing loans to people with lower credit scores: The Car Finance Company, The Car People, JD Byrider, Go Car Credit, CarFinance 247, The Trade Centre UK.
Can I get car finance with negative equity?
Yes, it is possible to get car finance with negative equity in the UK, but it can be more challenging. Negative equity occurs when the value of your car is less than the amount you owe on it. This often happens if the car has depreciated in value faster than you've paid down the loan.
You can trade in your current car and roll the negative equity into a new car finance deal. However, this means you'll be borrowing more than the new car is worth, leading to higher monthly payments and potentially a longer loan term.
If you have savings or other means, you can pay off the negative equity when you trade in your car, which would allow you to start a new finance deal without carrying over the old debt. Some lenders might allow you to refinance the existing loan, possibly extending the term to reduce monthly payments, though this may increase the total interest paid.
Lenders may view financing with negative equity as higher risk, which could result in higher interest rates. Not all lenders will be willing to offer finance if you're carrying negative equity, so your options may be more limited. If you roll negative equity into a new loan, you risk being in a similar or worse position if the new car also depreciates quickly.
Selling your car privately might fetch a higher price than trading it in, reducing the amount of negative equity you need to cover. If possible, paying off the existing loan before entering into new finance can eliminate the negative equity issue altogether.
>Can I apply for car loans with bankruptcy?
Yes, you can apply for a car loan with a history of bankruptcy in the UK, but it may be more challenging due to the impact of bankruptcy on your credit score and financial standing.
You typically need to wait until you are discharged from bankruptcy, which usually happens 12 months after the bankruptcy order, before applying for a car loan. Applying while still bankrupt may be difficult and less likely to be approved.
Some lenders specialize in offering loans to individuals with poor credit or a history of bankruptcy. These lenders are more likely to consider your application, but they may charge higher interest rates and fees. They may require you to have a guarantor, someone with a better credit history, who agrees to make the payments if you default.
Secured Loans: Offering security, such as the car itself, might make it easier to get approval since the lender can repossess the vehicle if you fail to make payments.
Taking steps to rebuild your credit, such as using a credit-builder credit card or making timely payments on existing debts, can improve your chances of approval.
Providing a larger deposit can reduce the amount you need to borrow, making the loan less risky for the lender and improving your chances of approval. Ensure that the loan repayments are affordable within your current budget to avoid further financial difficulties.
What are CCJ car finance offers?
CCJ car finance offers in the UK are designed for individuals with a County Court Judgment (CCJ) on their credit record. A CCJ indicates that a court has ruled that you owe money to a creditor, and it can significantly impact your credit score, making it harder to obtain traditional car finance.
These are loans offered by lenders who specialize in high-risk borrowers. They are more likely to approve applications from individuals with CCJs, but the terms may be less favorable.
You pay a deposit and then make fixed monthly payments. The car is owned by the finance company until the final payment is made. HP agreements are popular for those with CCJs as the car itself acts as security for the loan.
Similar to HP, but with a larger final "balloon" payment if you want to own the car at the end of the agreement. This option can have lower monthly payments but may require careful budgeting for the final payment.
Some lenders may require a guarantor, typically someone with a better credit history, to co-sign the loan. This reduces the lender's risk and can increase your chances of approval.
You can see the similar FAQ at the link:
- Bank of Ireland lending criteria
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- HSBC in America
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Details of companies offering the financial services:
buyacar
Head office’s address: London
Web-site: https://www.buyacar.co.uk/
CarFinance 247
Head office’s address: universal square, Devonshire St N, Manchester M12 6JH
Contact center: +44 333-247-1247
Web-site: https://www.carfinance247.co.uk/
Carplus
Head office’s address: Lumiere House, Elstree Way, Borehamwood WD6 1JH
Contact center: 0203 389-7779
Phone: +44 20-3389-7779
Web-site: https://carplus.co.uk/
Cash Compare
Head office’s address: London
Web-site: https://www.cashcompare.co.uk/
ChooseMyCar
Head office’s address: Alexandra Court, Carrs Rd, Cheadle SK8 2JY
Contact center: 016-1768-1543
Phone: +44 161-768-1543
Web-site: https://choosemycar.com/
Evolution Money
Head office’s address: 9 Portland Street, Manchester
Contact center: 0161-814-9158
Web-site: https://enquiry.clarity-uk.com/
Got Capital
Head office’s address: 131 Finsbury Pavement, London
Contact center: +44(0)203 7500096
Web-site: https://gotcapital.co.uk/
Moneybarn
Head office’s address: Athena House, Bedford Rd, Petersfield GU32 3LJ
Phone: +44 330-555-1230
Web-site: https://www.moneybarn.com/
MoneySuperMarket
Head office’s address: St David's Park, Buckley, Flintshire, CH5 3UZ, United Kingdom
Web-site: https://www.moneysupermarket.com/
Pegasus Finance
Head office’s address: Technology House, Station Rd, Alton GU34 2PZ
Contact center: 800-066-2882
Web-site: https://www.pegasuspersonalfinance.co.uk/
Refused Car Finance
Head office’s address: Lakeside House, 30 Northumbrian Way, Newcastle upon Tyne NE12 6EH
Contact center: +44 191-718-0000
Web-site: https://www.refusedcarfinance.com/
Stoneacre
Head office’s address: London
Contact center: 01-405-310-570
Web-site: https://www.skoda.co.uk/