We can provide finance for people who have had difficulties obtaining credit in the past,
if we can’t approve you, we don’t think anyone can!

Car Finance Glossary

Some car finance terminology and jargon can be confusing! Our A-Z car finance glossary is here to help explain the terms you may be unfamiliar with.

Acceptance Rate / Approval Rate – This is how many applications have been approved and payed out by the broker. Here at Refused Car Finance we have a 98.4% approval rating, this means out of every 100 applications we get, over 98 of them get car finance from us and are able to drive away their new car.

APR / Annual percentage rate – This is the rate of interest and charges you’ll pay over a year, on top of your actual loan amount. The lower the APR percentage the better it is.

Base Rate – This is the rate of interest set by the Bank of England and determines the lowest rate the lenders will charge interest at.

Conditional Loan – This is where you agree to buy a car at the beginning of the car finance agreement, once you have paid your monthly repayments ownership of the vehicle automatically passes to you. Find out more about conditional loans.

Credit Rating / Credit Score – This is a rating/score that assess the factors that affect your ability to manage your debts. Generally the better you have been at paying back borrowed credit in the past the better deal you will get.  Here at Refused Car Finance we are a bad credit finance specialist, therefore we can approve applications even if you have a really poor rating.

Credit History / Credit Report – This is a historical record of the credit you have taken out and your repayment of the debts. It typically includes credit from banks, credit card companies, governments etc.

Customer fees – Some companies pass on additional charges to their customers, at Refused Car Finance we have no customer fees.

Deposit / No Deposit – When taking out car finance you sometimes have the option to put down a lump sump at the start of a contract, deposits are often not refundable. For more information on which car finance options require a deposit and which don’t, you can visit here.

Fixed Interest Rate – This is where the interest rate on your loan doesn’t fluctuate. This makes predicting your repayments more accurate.

Guarantor –  A guarantor is a person or thing that acts as a guarantee of payment, for example a relative may guarantee they will pay your loan should you not be able to.

Hard Inquiry – Type of credit report check carried out by a lender which could result in lowering your credit score.

Hire Purchase (HP) – This is a type of car finance, to find out more please visit our hire purchase car finance page.

Inflation – This is an increase in prices and fall in purchasing value of money.

Interest Rate – This is the price added on top of of the money you borrow. Interest rates often rely on your credit history. Learn more about credit ratings.

Lending Criteria – financial characteristics the lenders look at when determining whether to lend to you. This often includes income, asset’s, expenses and credit history.

Loan Agreement – a contract between you and your lender which state what you both agreed to when the loan was set up.

Loan Term / Loan Period – the length of time you need to pay back your loan.

Monthly Repayments – the amount of money you are required to pay back every month.

Over-payments – paying more than the amount due.

Personal Contract Purchase – a type of car finance, find out more about personal contract purchase finance.

Personal Loan – also a type of car finance, find out more about getting a personal loan.

Refinanced / Refinancing – When you already have a finance contract but you renew it to get a better deal.

Secured Loan – this is where a lender will take an asset should the loan not be paid, for example if you loan is secured against your car, the lender has the right to repress the car should you default on payments.

Soft Loan / Soft Pull – This is where you, your potential employer, a financial institution you already do business with or a credit card company who is conducting a pre-approved check, look at your credit report.

Unsecured Loan – the opposite to a secured loan, this loan is rewarded to a prospective borrower due to their credit worthiness. This is a higher risk for the lender, but lower for you. However, if you have extremely poor credit this may not be an option to you. Learn more about bad credit car finance.




Registered with Information Commissioners Office ICO Registration Number: ZA132327

UK Car Finance Limited. Registered in England
Registered number 9397657.
Registered Office Lakeside House, 30 Northumbrian Way, Newcastle Upon Tyne, NE12 6EH

Refused Car Finance is a trading style of UK Car Finance Limited and is acting as a licensed credit broker and a lender, we are authorised and regulated by the Financial Conduct Authority, registration number 714966. All finance is subject to status and income. Applicants must be 18 or over, terms and conditions apply, guarantees and indemnities may be required.

Written quotations on request. Certain exclusions for NI residents.

Note: We cannot be held responsible for specification errors, and price errors, we use Motortrade software which is not always 100% accurate. Copyright 2017 Refused Car Finance.

Refused Car Finance can introduce you to a limited number of finance providers based on your credit rating and we may receive a commission for such introductions.

*Representative Example
Cash price – £8,500.00, Deposit – £0.00, Amount of credit – £8,500.00, Rate of interest – 16.24% per annum, Amount of interest – £6,912.00, Lender Documentation fee – £0.00, Lenders option to purchase fee – £10.00, Total charge for credit – £6922.00, First repayment – £256.70, Followed by 58 Monthly repayments of – £256.70, Final repayment – £266.70, Total amount payable – £15,412.00, Representative APR – 29.9%

*Last month, over 51% of Refused Car Finance customers that had their loan arranged were offered an APR of 29.9% or lower

In the first 3 months of this year, UK Car Finance Ltd received 2140 unique applications, of which we were able to offer 2136 applicants a line of credit, subject to the applicant being able to provide acceptable proof of affordability, being free from insolvency and or/a supporting guarantor fitting the lenders eligibility criteria, this represented 99.8% of applicants in this period.

Rated No.1 for car finance in the North East of England collated from Google Business Reviews

Refused Car Finance Reviews

4.90 Average

146 Reviews

Was so fast and easy Jacob was even doing out of work search’s for me , he done more than his job he helped me find my car I wanted and pushed through for me to get it as soon as possible .

Refused Car Finance where awesome they kept me informed every step of the application they where so professional in every aspect. I highly recommend them to anyone with poor credit history and for people who are long term benefits.

Paige was very professional and very helpful. Highly recommend