Compare car financing options with Motiv
- Find great deals to save you money
- Won't harm your credit score
- Compare a range of lenders in minutes
Car finance companies must only lend responsibly by ensuring they assess applicant creditworthiness and affordability. As such, a credit check will always be required.
It may be possible to get a logbook loan without a credit check, although these are risky and expensive.
The good news is that plenty of specialist lenders aim to help car buyers with bad or limited credit.
Below, we explore the options for motorists with bad credit who are looking to be approved for a car loan.
Warning: late repayments can cause you serious money problems. See our debt help guides.
Your credit score is a figure based on the activity in your credit report, used by lenders to assess how reliable you’re likely to be as a borrower.
The score is calculated by credit reference agencies. There are three major agencies used by lenders in the UK (Experian, Equifax and TransUnion) and it’s possible each agency will rank you differently. What’s more, each lender has different tiers for “very poor” and “poor”.
The main thing to remember is: the lower your score, the harder it will be to be approved for credit. You can learn more in our guide on dealing with bad credit.
Some lenders may offer an eligibility check service, which will indicate if you’re likely to be approved for a car loan. This requires you to fill in a few basic financial details. It may involve no credit check or a “soft” check, which has no impact on your credit score.
Even if your eligibility check suggests you’re eligible for a car loan, you’ll still have to submit a full application. This application will require more personal and financial details, including a full credit check, and you may be declined a loan based on this extra information.
No matter which of these alternative credit sources you choose, your lender will consider all of these factors as well as your credit score.
If these factors are all in good shape, you’ll be far more likely to be approved for a loan with a bad credit score.
Consider these potential pitfalls before taking out a car loan with poor credit.
Get the cool, comfortable sleep you’ve dreamed of without breaking the bank.
If you’re considering applying for a £200,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
If you’re considering applying for a £150,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
If you’re considering applying for a £100,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
Find out which cars are placed in insurance group 39 and how much it might cost to insure them.
Find out which cars are placed in insurance group 38 and how much it might cost to insure them.
Find out which cars are placed in insurance group 40 and how much it might cost to insure them.
Find out which cars are placed in insurance group 37 and how much it might cost to insure them.
Find and compare car insurance costs for your Nissan LEAF model based on the engine size, the driver’s age and location.
Find out the average cost of insurance for a Citroen C4 based on the driver’s age and location.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.