Can I Get Car Finance With Bad Credit?

Bad Credit Car Finance FAQs

Do poor credit loans exist?

Bad credit loans are available, but they often come with higher interest rates to protect lenders from risk. We consider applicants with County Court Judgments (CCJs), making us a strong choice for those with less-than-perfect credit.

Check your eligibility today with no impact on your credit score!

Can you get car finance with bad credit?

Getting a car on finance is possible—you’ll just need to apply online. Once you apply, a lender will review your file and decide whether to approve you.

If you have bad credit, approval may be harder to get compared to someone with a better score. While we don’t specialise in bad credit finance, Marsh Finance considers applications from all credit backgrounds and will do our best to help.

How to get a car on finance with poor credit

Getting a car on finance is definitely possible and will require an application online. Once you have applied, a lender will review your file and make a decision on your application. If you have bad credit, your chances of being approved for car finance are lower than for someone with a positive score. To help your chances of getting car finance with bad credit, choose Marsh Finance, which reviews credit scores of all ranges.

Is it easy to get car finance with bad credit?

Getting car finance with bad credit is harder than if you had a better score, as lenders see you as more risky to lend to. This doesn’t mean that bad credit car finance isn’t possible though.

What are the types of car finance available with poor credit?

Marsh Finance offer a hire purchase to people with bad credit. Hire purchase agreements are traditional finance methods, where the car is yours once all car finance payments are made. 

Is there guaranteed car finance for bad credit?

There is not guaranteed car finance for bad credit, and you should stay clear of any lenders advertising guaranteed car finance in any form.

What are the reasons for poor credit?

Bad credit can happen for plenty of reasons. Here are some of the most common causes of bad credit.  

• No credit history.
• Bankruptcy.
• Having a CCJ (County Court Judgement).
• Not paying off past loans.

How do I know if I have bad credit?

You can find out your credit score for free online at multiple different sites. Here are some of the top picks for finding out if you have bad credit.

🔗 Experian
🔗 ClearScore
🔗 Credit Karma
🔗 Equifax
🔗 Money Saving Expert

What paperwork do I need for poor credit car finance?

The paperwork needed for bad credit car finance is exactly the same as any other type of finance. To get car finance, you will need the following paperwork:

• Personal details.
• Proof of identity (a driving licence is the best way to go).
• Proof of income (payslips and bank statements).
• Proof of address (a utility bill will show this).

What is a county court judgement (CCJ) and how does this affect my credit score?

A county court judgement is a summon to court over missed payments. This only happens when the repayment has been missed for a significant amount of time, and you could see a mark appearing on your credit score for six years (if you fail to attend). A CCJ will hurt your credit score and be visible to any potential future lenders when they run a credit check.

Can I get CCJ car finance?

You can get car finance with a CCJ, but you will likely face higher interest rates. It’s important, therefore, to make sure you can afford finance before entering an agreement. Marsh Finance is one of those companies open to CCJ car finance applications. Get in touch with us to see how we can help you achieve your car dreams.

What are the differences between a soft credit check and a hard credit check?

A soft credit check is one which doesn’t appear on your credit score, and a hard credit check is one that does. A hard credit check is visible to future lenders on your credit report, so it’s vital that you only undergo a hard credit check when you are certain that you want to finance. We took a closer look at hard and soft credit checks in a seperate piece, read it here.

Thankfully at Marsh Finance, you can apply without a hard search occurring until you sign the dotted line, helping protect your credit score as much as possible. Apply for car finance and receive a decision today without impacting your credit score.

Can I get car finance with a default?

Yes, you can get car finance with a past default, provided this has been repaid in full. Outstanding defaults would mean an instant rejection by most car finance lenders, as it signals that you aren't capable of meeting a repayment schedule. If you have corrected the default, you can get car finance, although terms and loan length will be higher than for someone without a default. 

Can I get car finance with missed payments?

Yes, you can get car finance with missed payments, as long as these payments have been paid off. Outstanding payments from past loan agreements will likely mean an instant car finance rejection. Settle any outstanding payment issues before considering a new finance application.    

Does checking eligibility affect my score?

Checking your eligibility doesn't affect your score with Marsh Finance. When you check your eligibility, a soft credit check is carried out. This doesn't affect your score, nor does it show up to future lenders.

Can I get car finance if I'm self-employed?

Yes, you can get car finance if you're self-employed, just be prepared to provide further supporting proof of income than for someone under full employment. Marsh Finance are a self-employed UK car finance provider, see how we can support you. 

Minimum income for car finance

Marsh Finance require a minimum income of £1,200 a month in order to be eligible for car finance.