Bad Credit Car Finance

It is possible to get car finance with bad credit, but the terms may not be as favourable compared to individuals with good credit. For instance, you might have to pay a higher APR because of the perceived risk that a lender places upon an individual with a poor credit score. However, understanding the basics of your credit score and the steps required to improve and maintain it will help you to not only improve your chances of securing car finance with bad credit but also improve those less favourable terms.


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What’s a good vs bad credit score?

Credit scores are measured by the Fico Score Ranges which you can see in the above graphic. And the difference between an excellent, good and poor credit score depends on how many points an individual has -the more the better, with the top end of the range hitting 850.

There are other types of credit score available, that operate in the same manner, but if you would like to check your Fico credit score, then you can view this by opening an account on Experian.

How do I improve my credit score?

Many traditional lenders, such as banks and credit unions, may be less likely to approve a car loan for someone with bad credit. However, there are specialised brokers who work with individuals with bad credit and can offer car finance like ourselves.

The interest rates and fees on car loans for individuals with bad credit may be higher than those for individuals with good credit, and the down payment required may also be higher. It may also be helpful to work on improving your credit before applying for a car loan. This can include paying off any outstanding debts, making all of your payments on time, and keeping your credit card balances low.

Other tactics you can do to improve your credit score are:

-Up to 30% of your credit score is made up of amounts owed. If you can, pay your credit card bill in full every month to clear the balance.

In summary, it’s possible to get car finance with bad credit, but it may come with more challenges and higher costs. It may be easier to use a specialist broker who can perform soft search checks like ourselves to obtain the best possible rate whilst not impacting your credit score.

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Song Bird
Song Bird
Could not recommend Happy Motor Finance enough. Kirsty has been so helpful throughout, searching for cars and contacting dealerships on my behalf. She has gone above and beyond and made what could have been a stressful experience a walk in the park. Would definitely use again. Highly recommend
Jordan Little
Jordan Little
Brilliant service sorted everything for me
Tricky Mooney
Tricky Mooney
First class, quick and easy and extremely helpful from start to finish 👍🏼
Lucy Holden
Lucy Holden
Brilliant service from star to finish super fast on the forms and got my dream car ❤️
Debbie King
Debbie King
Excellent company highly recommend. Always available to help, brilliant communication and always kept informed of how the process was going. Swift, helpful and kind. Can’t wait to collect my new car. Thank you.
Nicola Redgrave
Nicola Redgrave
Fab from start to finish! Thank you so much! Can't wait to pick my car up! ❤️
Matthew Moxham
Matthew Moxham
Absolutely 110%.. Extremely helpful very fast replies.. Absolutely could not do enough for me.... Customer service is exactly how it should be... Amazing experience from the start to finish Thankyou
A M
A M
Easy and very helpful in finding the right car for me
Some of our trusted partners
Oodle - Car Finance Loan Lender
Marsh Car Finance - Motor Finance Broker
Advantage Finance - Car Finance Broker Partner
Lendable Car Finance - Motor Finance
Close Finance - Motor Finance Partners
First Response Car Finance Broker Partner
Happy Motor Finance Limited is registered in England and Wales under company number: 14387669. Registered office address: Clippers House, Clippers Quay, Salford, England, M50 3XP

Happy Motor Finance Limited (FRN - 989250) is authorised and regulated by the Financial Conduct Authority. We act as a credit broker not a lender. We work with a number of carefully selected credit providers who may be able to offer you finance for your purchase. (Written Quotation available upon request). Whichever lender we introduce you to, we will typically receive commission from them (either a fixed fee or a fixed percentage of the amount you borrow) this will not affect the rate you are offered or the amount you will pay back. The lenders we work with could pay commission at different rates. All finance is subject to status and income. Terms and conditions apply. Applicants must be 18 years or over. We are only able to offer finance products from these providers.

Happy Motor Finance Limited are registered with the Information Commissioners Office under registration number: ZB408604

VAT Number: 456 0212 21