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What happens if you need car finance but you have bad credit? Or for that matter, you are interested in car finance, but you have no credit history whatsoever?

Tips for Getting A Car with No Credit or Poor Credit

UK Car Finance
06, Dec 2019

The quickest, easiest and most affordable way to buy a car is to walk into a dealership with a huge wad of cash. Unfortunately, this simply isn’t a realistic option for most car buyers.

Instead, the overwhelming majority use car finance deals to fund their purchases. The idea is that you take home the car you need today, after which you pay for it gradually over a number of months or years.

Lenders in general tend to view individuals with no credit history in the same negative way as those with poor credit. Major banks in particular have a habit of excessively scrutinising potential clients with an imperfect credit history.

There are alternative options to explore. Whether you have a chequered financial past or no credit history whatsoever, there is much you can do to improve your eligibility for car finance.

The most important and effective tips are as follows:

  • Get to know your credit report

While it can be tempting to bury your head in the sand, this is actually the worst thing you can do. Irrespective of how painful it may be, you need to carefully inspect your credit report and see where you stand. This will help you determine if and to what extent you may be eligible for car finance with a specialist lender. The more damaged (or absent) your credit record, the greater the importance of targeting specialist car finance lender.

  • Apply to lenders who support bad credit applicants

Contrary to popular belief, not all car finance specialists automatically reject poor-credit applicants, as exclusive network of car finance companies across the UK encourage poor credit borrowers to get in touch. Having acknowledged the realities of attempting to maintain flawless credit, specialist lenders are more than willing to consider all applications on a case by case basis. Some of these lenders carry credit checks as part of the application process, but don’t usually reject applicants solely on the basis of poor credit.

  • Consider your budget carefully

If you have no credit or a poor credit history, your eligibility will be determined on the basis of affordability and whether or not you are comfortably able to afford the loan and the subsequent repayments. This is why it is essential to ensure that you consider your budget and don’t apply for a penny more than you can afford. The more you apply for with poor credit, the more difficult it becomes to convince a lender to help you out.

  • Work with an independent broker

Last but not least, working with an independent broker can simplify all aspects of your application from start to finish. From assessing your eligibility to evaluating the strength (or otherwise) of your credit report to comparing the market for the best possible deal, it is a great way to simplify and speed up the process. All while safeguarding your credit report from further damage.

In a Nutshell…

Qualifying for a competitive car finance deal with poor credit can be challenging but is by no means impossible. If in doubt, take your case to an independent broker for advice and support, rather than approaching any specific lender directly.

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