Bad credit car finance gives those with a poor credit history the option for a car on finance, either through hire purchase, personal loans or personal contract purchase.

Whether you have CCJs, repeated missed payments and defaults, or any other reasons for a low credit score, you can still apply for car finance. This means you can pay for the cost of a car over a set period, rather than upfront. Acceptance is reliant on more than just your credit history, and in our case, we approve 98% of applications.

Will I be approved for car finance with poor credit?

As bad credit car finance specialists, we work harder than anyone else to get you the approval you need. If you meet the below criteria, we can offer you car finance regardless of a poor credit score!

  1. Are able to prove your affordability
  2. Are 18 years or older
  3. Have lived in the UK for 3+ years
  4. Hold a full UK driving licence
  5. Are free from bankruptcy

Remember, it’s always worth improving your credit score as this will give you access to better finance terms.

Bad Credit Car Finance Explained

How It Works

To secure a bad credit car loan you need to first fill out our short application form. We will then do the hard work for you, matching you up with the most suitable lenders to get you the best terms for your credit profile.

You will be assigned your own personal finance expert who will be in contact to talk you through the finance offers you have received. At this point, you aren’t required to continue and can choose to look for car finance elsewhere or decide it’s not for you.

If you do find a suitable offer, we sort out the paperwork so you can shop around for your new car. It really is that simple! You can use your credit agreement at any verified dealership in your local area or by browsing our cars.

We match our customers with the best lender for their circumstances. This means the lowest rate possible in line with our responsible lending policy and procedures. If you have further questions about bad credit car finance then please feel free to contact us or read on for more advice.

Types of Car Finance for Bad Credit

Whatever your circumstances, we believe that you should still be able to find car finance at the best rate possible. We work with a range of lenders who specialise in the following types of bad credit car finance:

No credit

No credit car finance is designed for those with no credit history. Whether you’re recently turned 18 or have just never had a credit agreement before, our specialist lenders will consider other factors to determine your affordability and credit-worthiness.

No deposit

No deposit car finance offers credit agreements with no up-front deposit charge needed. For those with no savings, our panel of lenders can find you the best deal. Be aware that with no deposit, you are likely to receive less favourable terms. It’s often best to hold back on your credit application and save a deposit first.

No guarantor

No guarantor car finance is for those who have no credit-worthy friend or family member to guarantee their loan. Many lenders require a guarantor for bad credit applications but our panel are specialists in finding alternative solutions.


While tougher to find, CCJ car finance is available. If you have received a CCJ in the last year, we recommend you wait for the 12-month period to pass over before applying. That way we can send you to a wider panel of lenders with better rates and a variety of car finance packages. If you can’t wait, there are still options, but you should expect longer terms and higher interest rates.


It’s often thought that acquiring car finance on benefits is impossible to acquire. While it’s more difficult to find than for those in employment, there are options. Our panel of lenders are willing to work with those receiving state support and will take into account your affordability and other factors, regardless of your employment status.

What causes you to have bad credit?

Late payments, defaulting on payment, receiving judgements and bankruptcy can negatively impact your credit score. You can check your score using sites like Credit Karma for free, where you can download your report and see where you’re going wrong. It’s important to check that there are no mistakes on your file too as you don’t want to miss out on credit opportunities because of an error.

What is recorded on your credit file?

There are several records that will be made on your credit file:

Missed Payments: This is fairly self-explanatory, but when you miss a payment a lender will record this on your file. It won’t be likely you will be declined if you apply for credit, but you will be seen as having an increased risk.

Defaults: When you fail to meet the legal obligations of your finance agreement due to missed payments, or not repaying at all, then a default is recorded on your credit file by the lender. This note will remain on your file for 6 years and will most likely rule out you being able to borrow from mainstream lenders and banks.

County Court Judgements (CCJs): A County Court Judgement is essentially a court order which allows the lender to begin doorstop debt collection when you have failed to keep up with payments. This is the most serious outcome apart from bankruptcy.

Bankruptcy: If you have been declared bankrupt, then you will be declined for an application for credit, even if you apply to bad credit specialists. Bankruptcy is the final stage in the process for lenders or creditors to retrieve the money owed to them, but you can also apply for bankruptcy yourself as a means to pay off your debts.

Lets get started!

No impact on your credit file

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Car Finance, Bad Credit, Instant Decision!

We are proud to be able to offer you an instant decision on your application.

Remember having bad credit is no obstacle to being approved for car finance. Apply for your bad credit car loan today and let us help you get the best car finance deal!

Use Bad Credit Car Finance Specialists and get the approval you need!

Refused Car Finance are bad credit car finance specialists. We work tooth and nail to get you the approval you deserve, with an incredible approval rating of 98.4% and amazing feedback from our customers we are proud to say we will do everything possible to help you get bad credit car finance too!

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Frequently Asked Questions

Regardless of your credit history, choosing finance and finding a car can feel complicated. Add in poor credit and it may start to feel a little stressful. Alongside our streamlined application process, we’ve includes some of the most frequently asked questions below. If you’d rather get advice based on your personal circumstances, get in touch for a friendly, no-strings chat.

Can I apply for car finance with bad credit?

Yes. Our whole business model is designed to help people who have or have had a poor credit rating. We do advise that if you have just received a CCJ or have a recent default on your account that you wait until your situation improves. Car finance lenders typically favour a credit rating on the up, recovering from any mistakes you made in the past before applying for credit with drastically help your chances of being accepted.

So, if you have found yourself making a few mistakes recently, you could consider trying to rebuild your credit score for a few months before applying in order to be in with the best chance of getting a great car finance offer. Alternatively, we can match you up with the best bad credit lender today.

What kind of agreement can I expect from car finance for poor credit?

Car finance for bad credit is no different from any other car finance agreement. You agree with a lender to pay a certain amount of money each month, every month, for a fixed term. A bad credit car loan is usually taken on terms of 1-6 years, and the APR depends completely on your personal circumstances.

I have a CCJ/IVA, can I still be approved?

If you have been issued with a CCJ or have IVAs in the past year it is more difficult for us to get your car finance. This is because it limits the lenders we can match you up with. We would always advise waiting 12 months before applying to give you time to rebuild your credit profile and prove to lenders that you are able to repay your loan. Find out more about IVA Car Finance.

I am unemployed with bad credit, can I still get car finance?

Affordability is one of the most important factors when it comes to being approved for car finance. Of course, being in full-time employment is a great way of being able to prove your affordability. However, we frequently get unemployed applicants approved for car finance as they can still prove they can meet the monthly payments. So, if you are currently out of a job but are sure you have the budget for car finance then we encourage you to apply and we can match you up with the very best lender.
Bad credit is a pretty vague term and you may feel like you won’t get a good car finance deal because of your credit score. However, if you are rebuilding your credit profile month on month and meet the criteria stated above then we can get you the best car finance package for you!

Why choose a car loan?

✓ Simple and easy to understand
✓ You will own the car as soon as the money is transferred to the dealer
✓ Not secured against your car
✓ Generally cheaper interest rates

What are the downsides of bad credit car finance?

• Can impact your ability to get other forms of credit
• Potential for long terms and high interest rates
• Vehicle quickly loses value

How does my credit score affect my chances of getting a car loan?

Your credit score is something that lenders will look at to assess how reliable you are at repaying and how much of a risk you are to the lender. Your credit score isn’t universal, so it can differ slightly depending on the credit company that you approach, but it will give an overall view of how you repay credit.
Your credit score can influence your chances of getting car finance, a mobile phone contract, and even property rentals. It is important to keep track of your credit score so you know what your chances of getting approved are and what kind of interest rate you can expect to receive.
For more information, check out our guide on how credit scores affect car finance.

What resources are there to help with bad credit car finance?

Our help and advice centre is packed with useful guides for understanding and improving your credit score, as well as useful tips for driving and choosing an ideal car. We also recommend the following sites for help and advice around finance and loans:

Just some of the happy customers who applied for bad credit car finance through us.

refused car finance put me at ease from the very first phone call. After being turned down by numerous other companies, I didn’t have much hope but after speaking to Jacob about my credit file or lack of, he assured me it wasn’t nearly as bad as I thought it was. Got finance sorted in less than two days with literally half the interest I was quoted after being messed around for weeks by other companies.

Jacob is a real asset to RCF, he kept me up to date every step of the way and was so easy to speak to! I Could not recommend RCF enough!!

Adina Johnson

These people at this company most certainly now how to help when you need helping and get the job done talk about going the extra mile omg they went the extra 100 miles for me found the car i wanted with the spec I asked for. Would I reccomend this company and these people let me just say you would be a fool to go to anywere else this firm is miles ahead of the nearist competitor simply miles. Thanks guys from me Chris R

Chris Roebuck

Dan was absolutely amazing! I have bad credit and was refused elsewhere. Dan talked me through everything was so helpful and funny. I would recommend him to anyone!!!!! Within a week I had my new car and I love it. Thankyouuuu very much!

Jade Warren

I have dealings with other finance companies before who provide a reasonable service but I found the staff at refused finance went the extra mile in finding me a suitable vehicle from a reputable dealer. I needed a lot of help and assistance and they were always willing to accommodate my needs even when I was being indecisive. I had 1 broker in particular who stands out, Jacob, Jacob did a fantastic job and always found solutions to problems I encountered, without his commitment to customer care I may have given up. I will definitely be recommending your company and Jacob in particular. Thanks guys I don’t know what I would have done without you.

Robert Clarke

Other types of finance we can offer:

Not found what you’re looking for? Check out our finance quick links below:

Guaranteed car finance
No credit car loans
Joint car finance
Car finance with a guarantor 

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Refused Car Finance Reviews

4.86 Average

198 Reviews

Deborah Wilce

Excellent very helpful

Lindsay Bell

Dan was very helpful. He was very patient Explaining everything. Thank you Dan.


I couldn't thank this team enough in helping me get back on the road. From start to finish I was completely kept in the loop excellent customer service from Sean, Ross & Dan. I never felt forced into anything the process was so fast and easy even Paul who delivered my car you where fab thanks so much guys 👌🥳