David Allan

Expertly compared by David Allan

Products Updated September 25, 2019

Bad Credit Car Finance

If you a history of bad or adverse credit and require finance to buy a car then we can help. With the help our of car loan experts we are able to search the car finance market to find you a suitable deal from their panel of our approved lenders. Guarantor car finance options available.

1 providers expertly compared:

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All credit types
Rated 5.0/ 5

CarFinance247 Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.


Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£1,000 - £250,000

Representative APR

Loan Term
1 - 7 years

Loan Type
Vehicle Finance Broker

Homeowners & Tenants

Finance for cars, motorbikes, vans and motorhomes. We make the process hassle-free & provide the customers with a helping hand throughout. Our aim is to get the best possible finance deal, whilst providing an efficient service of the highest quality.

Representative Example

Read our customer and visitor reviews for this product:
Rating: 5 / 5 with 2 votes
Massive range of cars and finance to choose from
by James Timmings

Pretty impressive range of cars and finance options to choose from with carfinance247.

Very Helpful
by David

I found Lending Expert to be very useful when searching for mortgages. Easy to navigate and find what I wanted using the search facility.

Car loan options for people with bad credit

What are your car finance options if you have poor credit?

What are your car finance options if you have poor credit?

If you need to buy a new car but don’t have enough savings to do so and you are also in a position where you have a bad credit rating you may be wondering if you are able to get a loan. If you have a bad credit score you will find that in the current economy that you will not be able to get a standard unsecured loan from a mainstream lender. However that does not mean that there are no options available.

The advantages

The advantage of bad credit loans is that they allow you to borrow money even if you have a bad credit score, which is something you wouldn’t be able to do if you had to borrow from a mainstream lender. The reason they can do this is because they actually assess your ability to repay your loan from your current financial information rather than going off your credit score, which is only indicative of your past financial situation. Assuming you are assessed as being able to make the repayments then you will be granted the loan. You should also be aware that if you take out a bad credit loan and make all of your repayments successfully that this will help you to repair your credit rating as the fact that it is a bad credit loan does not matter when it comes to credit ratings.

The disadvantages

Even though lenders who give loans to people with bad credit make an assessment of your current ability to make repayments, this doesn’t mean that they perceive the loan to be any less of a risk than a mainstream lender. Therefore you will find that one of the disadvantages of a bad credit loan is the interest rate you will have to pay on the loan. These loans reflect the risk the lenders are taking by having interest rates that are generally significantly higher than you would be able to get from a mainstream lender. You will also find that the upper limit on the amount you can borrow is also likely to be lower than if you had a good credit score. One final disadvantage is that bad credit loans are incredibly variable and so you should shop around to make sure that you get the best deal possible.

Loan calculator – how much could it cost?

This calculator will give you an idea of costs. The exact amount and APR payable will be provided from the lender subject to credit and affordability checks.

Your monthly payment will be:


Interest on this loan will be:


Annual Percentage Rate (APR):


Total repaid will be:




I have a bad credit, do I need a credit check to get a loan?

Yes. However, any history of adverse or bad credit will be taken into consideration by the lender. The lenders on our panel are used to dealing with customers will a low credit score.

I have settled CCJ's can I still get a loan?

Yes. The lenders on our panel accept past and settled CCJ's on credit file.

I am a discharged bankrupt, will this effect my loan?

Being a discharged bankrupt may limit the amount of lenders that are open to you. However the lenders on our adverse credit panel will be happy to consider you application. They will consider your credit record as a whole.

I have missed loan payments in the past, how will this effect my chances of getting a loan?

Missed loan payments will limit the amount of lenders who will be willing to accept your loan application. However, the lenders on our adverse credit panel will still consider your application.

Do I need to show proof of income to get a loan?

Yes. You will need to show adequate proof of income. This may be in the form of payslips if you are employed, or SA 302 forms if you are self employed either as a sole trader or company director.

How much will I be able to borrow?

Most unsecured loans have a maximum lending limit of £25,000. If you are looking for a larger loan then you may wish to consider a secured loan or homeowner loan as they are also know as. A secured loan will require security such as your home in order to take out the loan.

Will taking out a loan help build my credit rating.

If you make your loan repayments on time each and every month then yes this will positively effect your credit rating and increase your credit score.

Can I get a loan while self employed?

Yes. Being self employed is not a problem as long as you can show proof of income from your business as either a sole trader or company director. Many lenders will request to see SA302 documents from HMRC which show your income for the financial year. You may also be asked to provide business accounts or verification from your accountant.

Can I get a loan from a direct lender?

Yes. Our adverse credit panel consists of both direct lenders and brokers. If you are unsure of who may be the most suitable direct lender, then we recommend you use the services of a broker who will be able to assess your application and place your application successfully with a lender.

I have defaulted on some past loan payments can I still get a loan?

Yes. There are a number of lenders who will consider your application if you have missed previous loan payments or even have CCJ's on your credit file.

Can I get a bad credit no guarantor loan?

Yes. Our panel of lenders offer loans to people with bad credit without the requirement for a guarantor to be in place.

Lending Expert is a credit broker and comparison website, we're not a lender.

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Warning: Late repayment can cause you serious money problems.
For help, go to moneyadviceservice.org.uk