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Bad Credit Car Finance

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Can I get car finance with bad credit?


Car finance for bad credit clarified.


At Stoneacre we don’t just take into account your credit score, we consider your current situation and how affordable car finance is for you. So bad credit history does not necessarily mean that you won’t get finance.

 

You can apply for bad credit finance with our easy-to-use online application. It puts your details through a soft search and not a full credit check. This allows us to check your eligibility for finance without it negatively affecting your credit score.

 

What happens next?

 

You will receive an initial indication of how eligible you are for car finance. No matter the result, we will always follow up with you to discuss your application.

 

What’s more, we can also offer you a free, no-obligation part exchange valuation towards a new car.

Is bad credit car finance the same as guaranteed?

Bad credit car finance is designed to help people with lower credit scores obtain auto financing. Meanwhile, guaranteed car finance for bad credit doesn’t actually exist and is considered a financial offense under FCA rules. Anyone who offers such credit is in breach of them.

Is it possible to get can finance for bad credit with no guarantor?

We work with a variety of lenders and some of them may offer such car finance. It’s best to contact our in-house finance team directly to receive a personalized quote. 

Signs of Bad Credit

Calculator and pennies - bad credit car finance
Calculator and pennies - bad credit car finance

Missed Payments


Whenever you miss a payment it is recorded on your credit file. Lenders can see this and may consider you to be a greater risk. This may narrow the lenders who will lend to you or may increase the interest rate.


Close-up of credit cards
Close-up of credit cards

Defaults


A default is recorded on your credit file when you fail to repay. It is usually only recorded after multiple payments have been missed or several months have passed since the payment was due.

Bad credit car loan denied
Bad credit car loan denied

Denied Loan Applications


Loaning money is all about trust and a bad credit rating will likely lead to high-interest rates or a flat-out no from lenders. If the loans you're applying for are coming back as declined, this is a pretty big sign that your credit score isn't the best.

What bad credit can lead to


Inability to pay your debts over a period of time can result in:

  • County Court Judgements (CCJs)

    A CCJ is a court order that enables a lender to start doorstop debt collection. Whilst a CCJ is one of the most serious consequences of missing a financial commitment it should not stop you applying for car credit. At Stoneacre we are able to consider applications for car finance if your CCJ is over 4 weeks old.

  • Individual Voluntary Arrangements (IVAs)

    An IVA is a formal agreement between you and the lender to pay back an affordable amount of the debt over a period of time (usually five or six years). At the end of this period any outstanding debt is written off.


    The good news is that if you have previously had an IVA we can still consider you for car finance. Furthermore, whilst it’s more difficult, we can even consider you if you’re still within an IVA, as long as your insolvency practitioner gives written confirmation that you can apply for finance.


  • Bankruptcy

    The final stage of debt is bankruptcy and can be instigated by you or the lender. Applying for car credit whilst bankrupt is not impossible but poses the most difficult challenge. Applying for finance may also be against the terms of your bankruptcy so we recommend seeking legal advice first.


    However if you’ve been discharged from bankruptcy for over 12 months we would be happy to consider you for finance.

Factors that impact your credit score


Even if you have bad credit, some car finance providers will be more forthcoming to applicants whose credit rating shows signs of improvement. So giving yourself time to recover from any past mistakes can make all the difference when applying for car finance with a bad credit history.

Factors that can positively affect your credit score include:


- If anything, make sure you're on the Electoral Roll, and for the correct address


- Checking your credit repost regularly. It's possible for mistakes to appear, and fixing them will help keep a clearer picture of your score


- Making payments on time and having a great history of doing so


- Purchasing items with store cards can be a quick and easy way to build good credit


- Stay in the same job and/or house for long periods of time (building up at least three consistent years of each always helps on applications)

Factors that can negatively affect your credit score include:


- Missing payment dates


- Having no history of credit at all can lead to a poor score


- Moving home and/or job too frequently show signs of instability


- A history of using pay day loans


- Too many applications for credit in a short amount of time

  • Positive Factors

    Factors that can positively affect your credit score include:


    - If anything, make sure you're on the Electoral Roll, and for the correct address


    - Checking your credit repost regularly. It's possible for mistakes to appear, and fixing them will help keep a clearer picture of your score


    - Making payments on time and having a great history of doing so


    - Purchasing items with store cards can be a quick and easy way to build good credit


    - Stay in the same job and/or house for long periods of time (building up at least three consistent years of each always helps on applications)

  • Negative Factors

    Factors that can negatively affect your credit score include:


    - Missing payment dates


    - Having no history of credit at all can lead to a poor score


    - Moving home and/or job too frequently show signs of instability


    - A history of using pay day loans


    - Too many applications for credit in a short amount of time

Why get finance with Stoneacre?


At Stoneacre, we offer an innovative and empathetic approach to car finance and will try to find a solution that delivers our customers’ requirements within their budget.

Car finance: a team effort

We work with specialist lenders who help us obtain finance for 1,000s of drivers each year. Meanwhile, our dedicated in-house team with professional finance co-ordinators will take you through the ins and out of getting into a new car.

We'll help you every step of the way - from getting your finance in place to booking you in to view a car (or cars) of your choice.

During that process, we'll outline the details of all the acceptance details, including who you've been accepted with, how much we’re able to lend and at what interest rate.

Bad credit car finance garages

Car finance application process at Stoneacre

Bad credit is not a subject to be taken lightly. We can ensure that we’re knowledgeable and that’s not just when you’re on the phone with us.

Enter one of our many garages and you’ll find that our sales staff are experienced in helping people who have suffered from credit issues but need a car on finance.

So, if you’re looking for car dealerships that finance bad credit, look no further than Stoneacre. You can have peace of mind when visiting our nationwide dealerships that there will always be someone who can help you.


  • In-House Team

    Our in-house team has won multiple awards, including Finance & Insurance Awards for Industry Leading Training and also Dealer of the Year.

  • Approval Rate

    Two-out-of-three finance applications approved. The versatility of our lending panel, which includes lenders who specialise in providing car finance for people with a bad credit history, means we maintain this high approval rate.

  • Turnaround Time

    Our average turnaround time between us receiving an application and contacting you to complete the process is under 10 minutes, meaning you won’t be left hanging around to find out whether your application has been successful.

  • Family-Run Business

    We are a family business with over 20 years’ experience within the industry. We’re registered in the UK, have full FCA permission to offer consumer credit services such as car finance, plus we’re Specialist Automotive Finance (SAF) approved.


Finance Disclosure


For the purpose of this promotion Stoneacre is not acting as a lender but as an independent credit broker working with a panel of lenders. A list of these lenders is available upon request. Stoneacre do not charge a fee for an introduction to a finance provider, however, we may or may not receive a commission.


Decidebloom Ltd t/a Stoneacre, Omega Boulevard, Capitol Park, Thorne, DN8 5TX, is authorised and regulated by the Financial Conduct Authority. Our FCA number is 308726. You can verify this by visiting the FCA website or by contacting the FCA on 0800 111 6768.


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