Are you eyeing your dream car but worried about your credit history? Whether you’ve faced refusals for car finance in the past, have a County Court Judgement (CCJ), or missed some payments, the thought of a credit check might be daunting. But here’s the thing: a credit check is an essential step in the car finance journey, but it’s nothing to worry about. Let’s demystify the process and explore how it impacts your ability to secure that much-needed car loan.

Do You Need a Credit Check for Car Finance?

Types of Credit Checks in Car Finance

What Does a Credit Check Involve?

Can You Get Car Finance with Bad Credit?

Key Takeaway

Ready to take the next step towards your dream car?

A toy car next to stacks of coins.

Do You Need a Credit Check for Car Finance?

Yes, when you apply for car finance, a credit check is typically part of the process. This might sound intimidating, especially if your credit score isn’t where you want it to be. However, it’s not necessarily a roadblock. Many lenders, like us, understand that maintaining a spotless credit history isn’t always feasible. Your credit score is important, but it’s not the be-all and end-all. Lenders often assess each application individually, taking into account personal circumstances to determine the most suitable finance options for you.

A person checking their credit score on a tablet device.

Types of Credit Checks in Car Finance

Applying for car finance usually involves two types of credit checks:

  1. Soft Search: This preliminary check is a peek into your credit history. It’s like a background check that doesn’t impact your credit score or leave a visible mark on your report. A soft search helps lenders understand how you manage loans and repayments and your borrowing history. Read more about soft credit checks here.
  2. Hard Search: This occurs only after you’ve found a suitable finance option and decide to proceed. Hard searches are more in-depth and do leave a mark on your credit file, visible to other lenders. Be cautious about making multiple finance applications in a short period, as numerous hard searches can negatively affect your credit score. Read more about hard credit checks here.

What Does a Credit Check Involve?

A credit check is a tool lenders use to gauge your financial habits. It’s not just about a number; it’s about your behaviour as a borrower. Will you keep up with repayments? Are you a reliable customer? Lenders consider various factors:

  • Age
  • Income
  • Electoral roll information
  • Current financial commitments and debts
  • Missed repayments
  • Previous applications
  • Amount you wish to borrow
  • Desired loan term

Not all this info is on your credit report, which is why a thorough and complete application is crucial.

Road signs pointing in different directions with good credit on one and bad credit on the other.

Can You Get Car Finance with Bad Credit?

Absolutely! If your credit history includes CCJs, IVAs, mortgage arrears, or late payments, you might think car finance is out of reach. But that’s not always the case. There are lenders like us who specialise in car finance for those with an imperfect credit report. We understand that everyone’s financial history is unique, and we are willing to find solutions that suit your specific situation. Want to check if you’re pre-approved without impacting your credit score? Click here and receive a decision on the same day.

Small blocks ascending in number from left to right, with a hand placing a block on the far right column.

Improving Your Credit Score

Remember, your credit score isn’t set in stone. You can take steps to enhance it. Consistent, timely bill payments and responsible credit management can gradually improve your score, making you more attractive to lenders. Click here to see some handy tips on improving your credit score.

Key Takeaway

Applying for car finance does require a credit check, but it shouldn’t deter you from seeking a car loan. Whether your credit is excellent, poor, or somewhere in between, there are options out there.

A person hugging the bonnet of a car whilst smiling.

Ready To Take The Next Step Towards Your Dream Car?

Don’t let an imperfect credit score hold you back! With Marsh Finance, applying for car finance is quick, easy, and understanding of your unique financial situation. In just 30 seconds, you can find out if you’re pre-approved, and the best part? It won’t impact your credit score at all. So why wait? Click here to start your journey with Marsh Finance and get closer to hitting the road in your new vehicle. Let’s make your car dreams a reality, regardless of your credit history! 🚗💨👍 Apply Now!

Finance is subject to status

Representative Example

Rates from 12.9%

Representative example: borrowing £10,000 over 60 Months with a representative of 23.0% APR, an annual interest rate of 23.0% (fixed) and a deposit of £0.00, the amount payable would be 59 repayments of £269.58 per month, with one final repayment of £279.58 (which includes the option to purchase fee of £10.00), with a total cost of credit of £6,184.80 and a total amount payable of £16,184.80. Marsh Finance Limited are a lender, not a broker. 

Marsh Finance Limited are a lender, not a broker.

This is for illustrative purposes only and is not a quote or an offer of finance.