Getting approved
Car Finance with Bad Credit: What to Know
Yes, it's possible — here's how it works, what it really costs, and how to keep the cost down.
Yes, you can get car finance with bad credit, but you'll usually pay a higher APR. Some lenders specialise in lower credit scores, and a default, CCJ or missed payments don't automatically rule you out — they just narrow your choice and raise the rate.
Be wary of any deal that promises approval: no honest lender can guarantee it. Check what you could realistically borrow with a free eligibility estimate — no credit check, no impact on your file.
How does bad-credit car finance work?
Bad-credit car finance works the same way as any other deal — usually PCP, HP or a loan — but through lenders who accept lower credit scores. They price in the extra risk with a higher interest rate.
The car is often the security: with HP or PCP the lender owns it until you've paid, so they can recover it if you stop paying. That security is part of why these deals are available even when a personal loan might be refused.
Read how car finance works for the basics, then see what credit score you need for where you stand.
What bad-credit car finance costs (higher APR)
A lower credit score means a higher APR, so the same car costs you more over the term. The weaker your file, the bigger the gap.
Say a £15,000 car over 48 months: at 12% APR it's roughly £390 a month and about £3,700 in interest. Bump the rate to 24% APR and it's around £480 a month and closer to £8,000 in interest — over double. The car is the same; only the rate changed.
Work out the true cost of any rate on the APR calculator, and always compare the total amount payable, not the headline monthly.
Watch the total, not the monthly
How to improve your approval odds
You can improve your chances and cut the rate by strengthening your file and your application. Small steps add up before you apply.
- Save a bigger deposit — it lowers the amount you borrow and the lender's risk.
- Get on the electoral roll and keep your address details consistent everywhere.
- Clear or reduce other debts so your affordability looks stronger.
- Avoid multiple applications in a short window — each hard search can dent your score.
- Consider a guarantor if a trusted person can back the agreement.
Check eligibility without touching your credit score
Before you apply anywhere, estimate what you could borrow with no credit check. This avoids hard searches while you weigh your options.
Our eligibility estimate turns a monthly budget into an indicative figure and leaves no mark on your file. It's a planning tool, not a quote — your real offer depends on a full application and the lender's own checks.
Frequently asked
Can you get car finance with bad credit?
What interest rate will I pay with bad credit?
Does bad-credit car finance improve your credit score?
Should I avoid 'guaranteed car finance' adverts?
Will checking eligibility hurt my credit with bad credit?
Work out your next step
Independent calculators — pick the one that fits your situation.