Can I Get Car Finance with Bad Credit?
Having bad credit can make it seem challenging to secure car finance, but it’s not impossible. Many lenders understand that past financial difficulties don’t necessarily mean you can’t afford a car finance deal now.

Having bad credit can make it seem challenging to secure car finance, but it’s not impossible. Many lenders understand that past financial difficulties don’t necessarily mean you can’t afford a car finance deal now. In this guide, we’ll explore how car finance works for those with bad credit, what to expect, and how to improve your chances of approval.
What Is Bad Credit?
Bad credit typically refers to a low credit score, which can result from:
- Missed or late payments on loans, credit cards, or bills.
- High levels of debt relative to your income.
- Defaults, bankruptcies, or county court judgments (CCJs).
- Limited credit history, making it difficult for lenders to assess your reliability.
Can You Get Car Finance with Bad Credit?
Yes, there are lenders who specialise in offering car finance to people with poor credit histories. These lenders take a more flexible approach, often considering other factors such as your income, employment status, and current financial stability.
Here are some common options:
Specialist Bad Credit Lenders:
- These lenders focus on helping individuals with low credit scores.
- They may offer higher interest rates to offset the perceived risk.
Guarantor Loans:
- Involves a third party (usually a family member or close friend) guaranteeing the loan. If you miss payments, the guarantor is responsible for covering them.
Hire Purchase (HP):
- Easier to obtain than other finance options since the car serves as security for the loan.
How to Improve Your Chances of Approval
Check Your Credit Report:
- Review your credit report for errors or inaccuracies that could affect your score. Correcting these can make a big difference.
Save for a Deposit:
- A larger deposit reduces the amount you need to borrow, making you less risky to lenders.
Show Stability:
- Evidence of stable employment and regular income can reassure lenders.
Consider a Budget-Friendly Car:
- Opting for a more affordable vehicle can increase your chances of approval.
Work with a Broker:
- Brokers can help match you with lenders who are more likely to approve your application.
What to Watch Out For
High Interest Rates:
- Bad credit car finance often comes with higher interest rates. Be sure to compare offers to find the best deal.
Hidden Fees:
- Look for any additional charges, such as early repayment penalties or setup fees.
Unscrupulous Lenders:
- Avoid lenders with unclear terms or overly aggressive sales tactics. Stick to reputable providers.
Steps to Apply for Car Finance with Bad Credit
Assess Your Budget:
- Work out how much you can afford to pay each month.
Choose the Right Lender:
- Research lenders that specialise in bad credit car finance.
Prepare Documentation:
- Gather proof of income, address, and ID to streamline the application process.
Submit Your Application:
- Be honest about your financial situation to improve your chances of approval.
Review the Offer Carefully:
- Ensure you understand the terms before signing any agreement.
What to do next?
Getting bad credit car finance Manchester is possible with the right approach. By improving your credit score, saving for a deposit, and working with the right lenders, you can secure a deal that suits your needs.
If you’re ready to explore your options, contact carloans 365. We specialise in finding car finance solutions for all credit situations and are here to help you get back on the road.