pro finance blog
Menu
  • About Me
  • Hire Me
  • Contact Me
  • Submit a Guest Post
    • Privacy Policy
    • Disclaimer
Menu
get a car loan when you have bad credit

Can you Get a Car Loan When you have Bad Credit?

Posted on March 31, 2021July 24, 2022 by Tina Roth

In recent years, car finance has become more accessible for people with different circumstances. It used to be hard to get approved for a car loan if you had bad credit, are self-employed, receive benefits or don’t have a guarantor to support your application. Nowadays, there are many options for people to make car finance open to everyone but always remember that if you’re looking for guaranteed car finance you won’t be able to find it. That’s because lenders can’t guarantee that anyone will get accepted for finance. Let’s take a look at how you can increase your chances of getting approved for a car loan with bad credit.

get a car loan when you have bad credit

Soft vs hard search checks

This may seem obvious, but many lenders will require a credit check to be performed on your credit file before you can get accepted for car finance. However, some bad credit card finance specialists also look at affordability to get you approved. Most lenders will perform a soft search credit check on your credit report which doesn’t harm your credit score or is recorded on your credit file. If you’re shopping around for finance, a soft search credit check is much more beneficial. You may also come across hard search credit checks too. A hard search credit check is recorded on your credit file and multiple hard searches ina short space of time can negatively impact your credit score – not feat if you already have bad credit!

Check your credit score regularly

It is recommended that you get into the habit of checking your credit score on a regular basis. A recent survey by refused car finance showed that 18% of their customers said they have NEVER checked their credit score in their life! But these customers applied to the bad credit car finance specialist, assuming that that did have bad credit! When you check your credit score you should make sure all your information is correct and up to date. Even having the wrong address or incorrect name can negatively affect your credit score. If you see anything on your credit file, which can be an application for finance that you don’t recognise, you should let your credit referencing agency know. You may be the victim of a fraudulent application for finance in your name.

Increase your credit score

There are a few ways in which you can easily increase your credit score to help you get approved for car finance.

  • Pay all your bills on time and in full to show potential new lenders that you have good financial responsibility
  • Register on the UK electoral roll to help lender verify that you are who you say you are and speed up the finance approval process.
  • Consider a credit building card or get your name on some bills if you haven’t taken out any form of credit before
  • Disassociate yourself from any financial links if you no longer have any credit with them. Their bad credit score could also negatively affect yours.
  • Keep your credit utilisation low by only using below 50% of the credit available to you. Maxing out credit cards etc can make lenders think that you can’t handle any more credit than you have now.

Save up for a down payment

Having a car finance deposit or down payment can also help you to get approved. Even just sabing up for a few months for a car deposit of a few hundred pounds can make you more attractive to lenders. It shows that you are good with your finances and also means that you don’t have to lend as much from your potential lender and lower your monthly payments. It will also mean you pay less interest overall so can save you money in the long run.

Category: Credit Score

Leave a Reply Cancel reply

You must be logged in to post a comment.

About Me

finance blogger

The idea of starting a blog has been hitting me for long; I took it seriously after falling into a spiral of debt and recovering from it.

I have been anxious all through the financial difficulties. I see that same anxiety in the eyes of people, whose ill fate has put them at odd with financial repose.

It makes me compassionate. Out of this compassion and goodwill, I started this blog. I wanted to help all those, who are facing financial distress..




  • Phuket Real Estate
    Why You Should Invest in Phuket Real EstateJanuary 24, 2023
  • Corporate Governance
    Corporate Governance: What Are the 3 Core Principles of Good Corporate Governance?December 17, 2022
  • Successful Retirement
    How To Plan For Successful Retirement At 50: 5 Steps To Get Started OnNovember 4, 2022
  • Online Money Transfer
    Do You Still Transfer Money Internationally With Your Bank? There Are Better Online Solutions For ThatOctober 14, 2022
  • finance
    Important Roles of the Minister of FinanceSeptember 16, 2022
  • Avoid for New Businesses
    5 Forecasting Faux Pas to Avoid for New BusinessesSeptember 16, 2022
  • Affecting Pensions
    How Inflation Is Affecting PensionsSeptember 2, 2022
  • Content Writing
    The Complete Guide to Improving Your Content Writing SkillsAugust 30, 2022

    ProFinance Blog is dedicated to help people who are struggling with their personal finances. We have learned the lessons first hand and know how real the struggle is. Being compassionate about the personal finances and blogging about is our way to help people know more about different situations and how effectively they can handle it. So take control of your finances now and take actions towards gaining financial freedom and security. Join us in the mission to self-educate, learn and help others by sharing valuable information on finances. Here you will find information, tools and techniques on various aspects of finances and learn how you can use the information and implement it to make your financial life better than ever.Join us in our mission to financial freedom.

    • Phuket Real Estate
      Why You Should Invest in Phuket Real Estate
    • Corporate Governance
      Corporate Governance: What Are the 3 Core Principles of Good Corporate Governance?
    • Successful Retirement
      How To Plan For Successful Retirement At 50: 5 Steps To Get Started On
    © 2023 ProFinance Blog | Powered by Minimalist Blog WordPress Theme