Bad Credit Car Finance
Check your eligibility for car finance
Can I buy a car with a bad credit score?
The simple answer is yes.
At Stoneacre, we do not count your credit rating as a single source of truth. When considering your application for car finance, we also look into other factors, such as your ability to afford car finance.
We like to give everyone a chance to be approved for car finance, even those whose credit score might not be at its best. As such, we provide an online form to see if you are eligible. It is easy to complete and will not affect your credit rating, regardless of the outcome.
We can offer car finance with bad credit due to our flexible panel of lenders. After applying, if you are eligible for car finance, we can match you to a subprime car finance lender to help you get car credit where the monthly repayments are affordable and structured to your needs.
Representative Example
This represents an average of the deals that our customers receive on other vehicles
We are a credit broker and a lender. We can introduce you to a limited number of lenders and their finance products. We will provide details of products available, but no advice or recommendation will be made. You must decide whether the finance product is right for you. We do not charge you a fee for our services. Lenders will pay commission to us (either a fixed fee or a fixed percentage of the amount you borrow) for introducing you to them, this may be calculated in reference to a variable factor such as (but not limited to) the vehicle age, your credit score and the amount you are borrowing. Different lenders may pay different commissions for such introductions. Offers available to everyone over the age of 18, subject to credit approval.
We're bad credit car finance specialists
Stoneacre is a trusted car finance broker in the UK, and have full FCA permission to offer consumer credit services (such as car credit). We are also SAF approved, and are able to compare more than 15 different companies when looking to secure car finance for our customers.
We also are trusted members of the:
- National Franchised Dealers Association (NFDA)
- Finance & Leasing Association (FLA)
- Financial Conduct Authority (FCA)
- Specialist Automotive Finance (SAF)
Bad credit car finance at Stoneacre
Having a bad credit score shouldn't stop you from buying a car. At Stoneacre, we understand that it's not always possible to have the perfect credit score. You may have not taken out credit before, or you may have been struggling financially. Whatever it is, you should be able to apply with confidence.
When you apply for car finance with Stoneacre, we will take into account your specific situation when considering you for car credit. Our team will work with you to customise a car finance deal that meets your needs and make arrangements based on your preferred deposit, monthly payment and term. Once you get approved for car finance, you can look for a car online or at one of our dealers.
If you have very bad credit, you may find it hard to secure a car finance deal. If you have insolvency issues, such as an IVA, CCJ, or bankruptcy, you may need additional support when applying for finance. If you still need a car for work, our team can help you to secure a deal. Take our free finance check today and see what sort of deals and rates of interest we can provide at Stoneacre.
How to get car finance with bad credit
You can apply for car finance through our online application form. We offer a soft-search facility that will check your eligibility for car finance without affecting your credit score. Following form completion, we'll let you know if you're eligible.
If you are provisionally accepted, we can move you onto our in-house finance team, who will help you find a pre-approved car finance deal for bad credit. Once you are pre-approved for car finance with bad credit, you can look around and find a car for which you are eligible. A used car will likely be more obtainable due to the lower costs involved.
With a wide range of vehicles available at our dealerships, we can offer a significant number of options, and you can think more seriously about your purchase. Being pre-approved for bad credit car finance will mean your car-buying process is swift and straightforward. For a chance of getting pre-approved, take our free finance check today.
The car finance calculator is an indication of cost. Your chosen Stoneacre dealership will clarify any final details.
Know your credit score
Your credit score is a vital part of obtaining car finance, and any other form of credit for that matter. Not only will it help you determine if you are accepted, but also what you could have to pay.
While some may think you always need a strong credit score to get car finance, this isn’t true. Motorists can get credit on a car with a range of different credit ratings. It’s correct that your credit score makes a big difference when applying for finance, but your affordability is also a factor.
It’s healthy to be aware of what your credit score is. Knowing your credit score gives a good indication of how easy or hard it will be to obtain finance, and what kind of rates you will get if you are accepted.
The rate of car finance offered to you will depend on how big a risk the lender deems you to be. Customers who have a good credit score will pay less in interest and get the lowest rates. On the other hand, those with a worse-off credit rating will be seen as more of a risk to car finance lenders.
How is your credit score calculated?
Certain credit score factors will determine the chance of you getting car finance. There are several factors that go into the mix, but most Credit Reference Agencies (CRAs) will use the FICO system to score you for credit. FICO takes into account your past and present credit history.
The FICO scoring system consists of five factors. The FICO credit score factors are Payment History (35%), Amounts Owed (30%), New Credit (10%), Credit History (15%) and Credit Mix (10%). CRAs will calculate your credit score differently, giving weight to factors deemed more or less significant.
Your payment history is generally seen as the most important factor as it shows lenders that you have a good history of making payments. Another is knowing the amount of debt you owe, and this can show whether you are struggling financially. Each of these can factor into whether you have a good credit score or not. Also, the length of your credit history will factor in, and your credit mix will show the different types of credit you have. Any new line of credit will also show up on your report.
What information can creditors hold?
Credit companies can hold a lot of information about you. Credit reference agencies can see personal information such as your name, address, relationship status, salary and living situation.
They can also hold information about your credit history, and see financial information such as banks that you are registered with, your credit cards, credit debts, and whether you have a mortgage.
Certain information will be on public record, such as whether you have a personal bankruptcy or have been issued an IVA or a County Court Judgement. Both can indicate poor money management and can damage your chances of getting car finance on bad credit through a finance broker or a lender.
If you are looking to get a car loan on bad credit, it is important to remember that things such as active bankruptcy or a CCJ can remain on your credit report for up to six years. Even after you have been discharged, it is important to work on your credit score and improve your overall chances.
What is a bad credit score in the UK?
A bad credit score can be subjective. The lenders that Stoneacre are partnered with use credit data supplied by Equifax, Experian or TransUnion, and each CRA has its own way of scoring.
Each will give the application a credit score, but there isn’t a number that would be considered bad. You can be considered as having a low credit score but this differs with each credit reference agency.
Credit scores can help creditors understand the risk of lending to you. They will see a high credit score as a green flag as it shows a low risk of default. A low credit score can indicate greater risk.
Can't get car finance? This may well be down to your credit rating being on the lower side, and it's important to know what could negatively be affecting it so you can work to improve your score.
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Can I get car finance with bad credit?
Even if you have bad credit, some car finance providers will be more forthcoming to applicants whose credit report 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.
At Stoneacre, we work with a wide panel of lenders to offer car finance for people with bad credit.
Our subprime car finance lenders will keep in mind your specific situation and whether or not you can make the repayments outlined in the agreement. We work with several car finance lenders for bad credit - you can read more about them here.
As well as working to improve your credit score, you can also set things in place to act as a reassurance for bad credit car finance lenders. A joint application is one way to offer this assurance.
Joint applications for car finance
While we cannot provide car finance with a guarantor, as this will not provide strong enough protection for our customers, we can consider a joint application for car finance.
Whether you wish to proceed with an application on your own or not, there are many aspects that you will need to consider. You will need to offer proof of ID, income, and address. You will also need a steady income and enough monthly income to make the repayments.
When you're making an application for car finance with someone else (be it a parent, a sibling, or a spouse), you should make them aware of their responsibilities before entering an agreement. If - at some point - you were to default, they may have to accept financial responsibility for your repayments. By using a joint application, you can help your chances of getting approved.
What if I can't make a payment?
High-risk car finance is offered to customers who have a bad credit history, when mainstream lenders might turn you down. It is highly important that you make any repayments on time - or this could negatively affect your credit score in the future.
If you can't afford a car finance payment, your lender could issue a late payment charge. Your lender may contact you about the missed payment as interest may accumulate on your debt, and if you continue to avoid making payments, then your car may be repossessed.
If you can't afford car finance anymore, you may have to default. Defaulting on a finance agreement could see a mark placed on your credit report, which can negatively affect your credit score and make it harder to receive credit in the future. As such, it's always best to speak to your lender should you struggle to make any repayments. Your lender may issue a deferral or arrange a new schedule to suit.*