Tips to help you get car finance - even with bad credit

With the cost of living still biting and road tax changes already hitting drivers, the pressure on household budgets is mounting. From April 2025, electric vehicle (EV) owners began paying Vehicle Excise Duty (VED) charges for the first time - with annual costs of up to £620 for higher-end models.

With the autumn budget set for the end of November, further motoring costs could be on the horizon, including congestion charging trials, road pricing, and fuel duty reform.

For the one in three UK adults currently experiencing financial strain, the challenge of affording a car with poor credit, let alone securing finance, may seem even tougher. But there are still ways to get approved, and knowing what lenders look for could save you thousands.

1. Know your credit score 💯

Your credit score is a snapshot, not a full story. Missed payments, defaults, or even a lack of credit history can bring it down, but lenders also look at your recent behaviour, income, and stability. Start by checking your credit report and fix any errors and understand what's affecting your score.

2. Don't assume rejection - specialist lenders exist 

Mainstream banks might turn you away, but specialist lenders like First Response Finance take a broader view. They consider your current financial situation, not just past mistakes. We've helped thousands of customers with CCJs, defaults, or thin credit files get on the road.

3. A deposit can make a big difference 💰

While no-deposit options are available, putting money down shows commitment and reduces the lender's risk. That can lead to lower interest rates and better terms. Even a few hundred pounds can tip the scales in your favour.

4. Avoid multiple applications ❌

Each hard credit check can dent your score. Instead, use soft search tools to check eligibility without impacting your credit. We offer soft search pre-approval, which is a safer way to explore your options. 

5. Consider a guarantor or joint application

If your credit is very poor, applying with someone who has a stronger financial profile can boost your chances. But it's a serious commitment, so make sure both parties understand the responsibilities. For some, it's the key to unlocking finance.

6. Use car finance to rebuild your credit 📈

Making regular payments on a car loan can improve your score over time. We often see customers go from poor credit to prime within a few years. It's about consistency and proving you can manage repayments.