Can I get car finance with bad credit?

If you’ve been refused finance in the past or know your credit score isn’t perfect, you might be wondering if getting car finance is still possible. The good news is that bad credit car finance does exist - and many lenders specialise in helping people in just your situation.

In this guide, we’ll explain what “bad credit” means, how it affects your ability to get car finance, and what your options are if your credit history isn’t quite spotless. We'll also answer some of the most common questions people have about car finance for bad credit.

What does “bad credit” mean?

“Bad credit” typically refers to a low credit score or a history of missed payments, defaults, County Court Judgements (CCJs), or insolvencies. It doesn't mean you're irresponsible - it might just reflect a few bumps in the road, like late payments, a period of financial difficulty, or limited borrowing history.

Credit reference agencies in the UK (like Experian, Equifax and TransUnion) each have their own scoring systems. If your score falls into the lower end of their scales, it may be classed as “poor” or “very poor”.

How can I check if I have bad credit?

Checking your credit score is free, and it’s a great first step if you're considering applying for car finance with bad credit.

You can check your score using:

• Experian – Free basic account available
• Equifax (via ClearScore)
• TransUnion (via Credit Karma)

Your credit report will show your current score, financial history and any potential red flags. If you spot any errors, you can raise a dispute directly with the credit agency.

What credit score do I need to get car finance with bad credit?

There’s no set number required across the board. Each lender will have their own criteria and will assess your application based on more than just your score. That said, even with a score that falls into the "poor" category, you may still qualify for bad credit car finance.

Lenders that specialise in car finance for bad credit tend to look at the bigger picture. They'll want to understand things like:

• Your current income and employment status
• Whether your recent financial behaviour has improved
• If you're able to put down a deposit
• Whether you’re applying with a joint applicant

What is the criteria for bad credit car finance?

While it can vary between lenders, most will want to see that you can comfortably afford the monthly repayments.

Here’s what you’re likely to need:

💼 Proof of income
Whether you’re employed or self-employed, lenders want to see that you’ve got a steady income coming in.

📄 Proof of ID and address
A valid driving licence, utility bill or bank statement will usually do the job.

💷 Deposit (optional, but helpful)
A deposit isn’t always required, but putting down some money upfront can boost your chances of approval and reduce the total loan amount.

🧾 Bank statements
These help the lender assess how you manage your money day-to-day. This might be called something like income and expenditure. 

Can I get a new car on finance if I have bad credit?

Yes - but your options may be slightly limited compared to someone with a higher credit score. Some lenders may prefer to offer bad credit car finance on used cars, as they tend to be more affordable and represent less risk.

That doesn’t mean a new car is out of the question. If you're able to show affordability, offer a deposit, or apply with a joint applicant, you may still be approved for finance on a brand-new vehicle.

I’ve been turned down before - can I still get car finance with bad credit?

Being refused car finance in the past doesn’t mean you can’t apply again. In fact, many lenders specialise in helping people who've struggled to get approval elsewhere.

Here are some tips:

Wait before reapplying - multiple applications in a short space of time can hurt your credit score.

Use a soft search - some lenders let you check your eligibility without affecting your credit score.

Work with a specialist lender - companies like First Response Finance focus on car finance for individuals with bad credit and assess each application on a case-by-case basis.

I’m self-employed with bad credit – can I still get car finance?

Yes, being self-employed doesn’t automatically count against you - even if you’ve got a less-than-perfect credit history. Lenders will usually ask for a few extra details, such as:

Proof of regular income (e.g. invoices, tax returns)

Details of your business or trade

Recent bank statements

As long as you can show that your income is reliable and you can afford the repayments, you’ve still got a good chance of being approved.

How can I improve my chances of getting approved?

Even if your score isn’t where you’d like it to be, there are still ways to strengthen your application:

✔️ Pay off existing debts - lowering your debt-to-income ratio makes you look like a safer borrower
✔️ Register on the electoral roll - a simple way to confirm your identity and address
✔️ Add a joint applicant - if they have a stronger credit history, it can boost your chances
✔️ Be realistic - choose a car and monthly repayment plan that you can comfortably afford

Ready to explore your options?

If you're unsure where to start, why not try a finance calculator tool – it gives you an idea of how much you might be able to borrow based on a rating of Poor, Average or Good, and using it won’t affect your credit score.

To learn more, browse our Insights & Tips section – it’s packed with helpful articles just like this one.