Can I get car finance with bad credit history?

We could help you

We have been specialising in bad credit car finance since 1998 and have financed over 120,000 customers with a history of poor credit.

Getting a car loan when you have previously been classed as a ‘bad credit’ customer can be difficult and it can be frustrating.  At First Response we try our hardest to minimise these difficulties and frustrations by always doing our best for you as a customer in order to help you get the car you’re looking for.

Representative 38.9% APR, First Response Finance

We believe that having past credit issues shouldn’t stop you from getting a car loan, or at least being given a chance to prove yourself as a loyal and good customer. At First Response Finance we give customers this opportunity so, if you know you’ve had past issues but are looking to improve and build your credit file, there’s a chance we could help you.

Thin files

Take care of your finance - First Response

There are a number of reasons that you may have previously been classed as ‘bad credit’ and, despite what is communicated in the press, it isn’t always a negative thing and it isn’t always your fault. Being a ‘bad credit’ customer could mean that you’ve never taken out credit before (for example, you may have always paid cash) which, unfortunately, gives you a negative rating on finance applications. Never having taken credit means you have a ‘thin file’ as there is no history of your spending or debt.

Unfortunately, having a ‘thin file’ means you’re also classed as high risk as companies have no way of knowing if you’re good at paying money back.  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.

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Shared credit files

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. Unfortunately, when things go bad with one party it could mean that both credit files are affected. 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 we often see applications from customers who have a bad credit history due to their lack of knowledge of how past decisions would affect their credit file. If you are one of these customers you will show as a risk but, at First Response Finance, we will try to help you as much as possible. If you’ve taken steps to improve and repair your credit file by paying current bills and contracts on time we’ll see that as an attempt to get things back on track.

A bad credit car loan could help you repair your credit rating and prove that you’re a good customer; however, due to your history and risk rating you may have to pay a higher APR.

Our experience

When applying for a bad credit car loan with us you can be sure that you’re in good hands.  First Response Finance are the number 1 car loan company on Review Centre, as voted by customers. This title shows we take the time to understand you as a customer, the situations you could be in and your overall finance needs.

We know that your current finance situation may not be entirely your fault and we will try our best to understand your situation by speaking to you directly.  We speak to the majority of our customers in order to assess their current situation and their ability to pay back a bad credit loan in manageable monthly instalments. This process of talking to customers means  you’re likely to have a higher chance of being accepted as we treat you as a person, not a number.

Bad credit car loan with First Response

We have a fantastic finance calculator where you can input your credit rating, loan amount and length of the loan in order to give you an instant monthly repayment estimate. The estimate given is based on the finance information you enter and may be different from a quote based on your actual credit file. If you are happy with the estimate you can click apply and enter your details into our short finance application.

Ready to apply? Make sure you read our page on Hire Purchase agreements and make yourself aware of our application process – both links are below along with an overview of pros and cons for finance. 

Hire Purchase Pros & Cons

Pros
  • 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
  • You are protected under the Consumer Rights Act 2015
Cons
  • 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
  • Finance is subject to status and not guaranteed


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

Make an application

If you have any questions regarding finance 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 11/12/2017

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