Bad Credit Car Loans

Car Loan with a bad credit history

We have been specialising in providing credit solutions for customer who have a history of bad credit for over 20 years. Over 185,000 customers who have doubted their credit files or have previously upheld poor credit have been able to benefit from our simple application and realistic repayments for a car loan.

Getting a financed vehicle when you've previously been classed as a ‘bad credit’ customer can be difficult and frustrating. It can be hard for lenders to trust you, as your credit history only displays the last 6 years of how you have managed your credit - meaning bad credit from years ago could overshadow how you are in a better financial situation now in order to keep up repayments. When it comes to our bad credit car loans, it's good to know that we aim to deal with each application individually as we try our hardest to minimise these difficulties and frustrations. Representative 32.9% APR

Here at First Response Finance, we think having past credit issues shouldn’t always stop you getting a car loan, or at least being given a chance to prove yourself as a loyal and good customer. We give customers this opportunity. given the correct information is provided on your application. Read why we're one of the best car finance providers and how we could find a solution for you.

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Take care of your finance - First Response

There are a number of reasons that you may have previously been classed as ‘bad credit’ such as:

  • Have never taken out a loan before or always paid in cash, meaning you have no credit history
  • Shared credit with another person who had/has credit issues, and now your file is associated
  • Making some bad financial decisions, such as taking out large credit agreements and being overwhelmed with repayments you cannot pay
  • A build-up of missed payments. which led to your account defaulting or then escalating to CCJ’s

Not having a history

Not having a history of loans actually gives you a negative rating as there is no history of your spending or debt, meaning lenders cannot get an idea of how trustworthy you would be to repay their money. It is likely that you will have to pay a higher APR on any credit you get, including car loans, until you get a good level of credit history. 

It is advised that setting up and using a UK current account will help build your credit history if you run it responsibly, as it demonstrates to potential lenders that you have a responsible ongoing relationship with a bank. Setting up some direct debits payments to bill such as your gas and electricity or even home insurance or a mobile phone. Not only will this help you to avoid missing payments but you can sometimes get discounts for paying through this method. 

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Financial ties to other people

Coins being poured into a pile

Another reason for previously being classed as a ‘bad credit’ customer is through previous difficulties with shared credit files. This often occurs when couples, partners or friends take out credit together. This can have a negative impact on your own credit file if for example if they fail to make repayments on credit cards or other loans, it could bring your rating down with it. 

As a result, building your credit back up could take time but, thanks to bad credit car loans, it doesn’t have to be impossible and we may be able to help you.

Lack of knowledge

At First Response Finance, a lot of the applications we see come from customers who have a bad credit history due to a range of reasons; many being that they have made mistakes without realising the financial repercussions which have now affected their options when it comes to getting credit. 

If you’ve already started taking steps to regain control of your credit such as getting on top of current bills and paying contracts on time we’ll see that as your attempt to getting things back on track. A bad credit car loan could help you repair your credit rating and prove that you’re a good customer providing you pay on time; however, due to your history and current 'risk' rating you may have to pay a higher APR.

Confused about APR or 'flat rate'?

Whilst shopping around for cars, you may become familiar with the terms 'flat rate' and 'APR' - they're quite different. On the surface, flat rate may seem cheaper as the percentage is lower, but unlike APR interest will be charged at the initial loan amount throughout your agreement, meaning over time you will potentially pay more. 

Flat Rate - interest is charged on the original amount of money you borrowed, not taking into account what has been repaid over time.

APR - combines all extra fees such as administration charges and interest involved in the loan, and is calculated so you only pay interest on the remaining balance of your finance.

When it comes to APR, a general rule with a loan is that the more you borrow, the lower the APR will be. Rates can vary from lender to lender depending on the customers they would prefer to lend money to. The rate you are offered usually depends on the quality of your credit file, and its important to remember this rate doesn't include late payment fees. 

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Our Experience

First Response Finance are the number 1 car loan lender on Review Centre, as voted by customers. Being recognised for this shows how we take the time to understand your application as a customer and want to learn more about the reasons behind your credit file to come to a financial agreement which is right for you.

We understand that some financial situations may not be entirely your fault, or due to unforeseen reasons - that's why we will try our best to understand your situation by speaking to you directly where needed. We like to do this with the majority of our customers in order to assess their bad credit situation in the past and affordability to pay back a loan of this kind in manageable monthly installments. This process of talking to customers means you’re likely to have the best chance of being understood and accepted.

Please note: some customers will be automatically refused and will be notified upon submission of an application.

Bad credit car loan with First Response


We have a really handy bad credit car loan calculator where you can input an indication of your current credit rating, desired loan amount and length of the loan in order to give you an instant monthly repayment estimate including any APR charges you will incur on top.

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Hire Purchase Pros & Cons

  • Simple to arrange
  • Fixed monthly payments
  • Fixed interest rates
  • Flexible term lengths 24-60 months
  • Vehicle belongs to you after final payment
  • Deposits not required
  • No annual mileage restrictions
  • Protected by the Consumer Rights Act 2015
  • The vehicle is at risk of repossession if you do not keep up repayments
  • You do not own the vehicle until your final payment
  • Hire Purchase is not suitable if you plan on paying off your loan within 6 months
  • Commitment to pay each month regardless of personal financial changes
  • Loans are subject to status and not guaranteed

Learn more about our Hire Purchase loan or view the full detailed process of our loan application.

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If you have any questions regarding loan products, debt or budgeting you can source independent advice from either of the below sites.

Money Advice Service

Citizen Advice Bureau

Data taken from Review Centre and correct as of 01/10/2020


References - 

Money Advice Service, 2019 - How to start building your credit history.

Experian Consumer Guides 2019 - Annual Percentage Rate: How does it work?

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