• Affordable monthly payments

    Affordable monthly payments

    Deals with competitive APR & Interest rates

  • Huge car choice

    Huge car choice

    Choose from any reputable FCA Approved dealer

  • Reviews

    Reviews Star

    Rated excellent by our Customers

  • Decision in minutes

    Decision in minutes

    From a huge range of trustworthy lenders

Car finance is a straightforward and simple process and for many people, it means they can get a car and pay for it over a term that suits them! One of the most essential and unavoidable steps of the process is having a credit search performed on your credit file. Lenders want to know how likely you are to repay your car loan, so your chances of being approved will depend on your credit history. It can be hard to get a finance deal with no credit check but you shouldn’t be worried about credit checks either. The guide below looks at how credit scores affect car finance rates and how to increase your chances of being approved. 

What is a credit score?

A credit score is essentially a scoring system of your ability to manage your finances. Credit scores can range from ‘bad’ to ‘excellent’ and depending on where you fall on the credit score, it can affect your chances of getting approved for car finance. A credit check is a tool that lenders use to help decide whether you qualify for the credit card, personal loan, mortgage or car finance that you’re applying for. Using the personal information you provide with your application, lenders will decide how much of a risk you are to lend to.

Your credit score is based on your credit report. This is a report that includes information on your debts, credit cards including their limits and available spending, utility accounts and their payment history, credit search that have been recorded and any public records such as your registration on the electoral roll and CCJ’s. Missed or late payments in the past, high levels of debt, no previous history of borrowing or high credit usage can usually leave you with a low credit score. 

checking credit score on phone

How does credit score affect car finance acceptances? 

When you apply with Refused Car Finance, you’ll hear us talk about approvals/acceptances or being refused/declined car finance. A car finance approval or acceptance means that a finance lender wants to offer you a car finance deal. As a car finance broker, we work with some of the best and most trusted finance lenders in the UK. We take your application and put it in front of the lenders that would suit you best and if one of those lenders wants to offer you finance, this is called an approval or acceptance. If you receive multiple acceptances, we then help you select the deal with the lowest interest rate for your circumstances.

It can be harder to get approved for finance when you have a lack of credit history or a bad credit score. If a lender has decided you aren’t suitable for finance or don’t meet the finance eligibility criteria, you may be refused or declined. people with good or excellent credit scores may get access to the best finance rates and can see easier acceptances with lenders.

What score do I need to be approved for car finance?

There isn’t a universal credit score that will guarantee approval for car finance – in fact, no one can guarantee car finance! There are 3 main credit referencing agencies in the UK that hold your credit information and each of them use a different scoring system so it’s impossible to highlight one single figure. However, those with a higher score are generally seen as less of a risk than those who have a low credit score.  Our wide panel of lenders means we have a whole range of different lending products to offer, so we’re certain to find you your perfect car finance deal.

Checking your score before you apply is a good idea as there are some small steps that you can take that will help to increase your chances of being approved for car finance.

Can I get car finance if I have a bad credit score? 

Credit scores can affect car finance deals in a number of ways. With some lenders, it can be harder to get a loan with a low credit score as they may be worried that they aren’t going to get their money back on time and in full. Luckily though, getting car finance with a bad credit score is possible through Refused Car Finance and there are several options available through our panel of lenders if you have a less-than-perfect credit score. We’re one of the best bad credit brokers in the UK and work harder than any other finance company to help poor credit applicants get access to a car. However, there are many financial benefits to having a good credit score and we always recommend to our customers that they rebuild a bad credit score to help their future selves too. 

Do you need good credit to finance car?

You don’t necessarily need a good credit score to get accepted for car finance but it can help. Lenders usually reserve their lowest interest rates for those with better credit scores as they are less of a risk. It may also help you to see easier acceptances with lenders. However, if you’re worried about how bad credit affects car finance, we’re here to help you! Our bespoke lending panel and experience in the industry, enable us to offer more car finance approvals to a whole range of different credit circumstances!

getting a car finance approval

Does applying for car finance affect my credit score? 

If you already have a bad credit score you may be wondering how applying for car finance affects you. Some lenders may use a hard search which can harm your credit score if you make multiple applications with different lenders in a short space of time. However, applying for car finance with us, means you can protect your score whilst also comparing the best finance deals. We only use s soft search credit check when you make an online application on our website which doesn’t harm your score and isn’t recorded on your credit report either! 

Looking for car finance?

Make a free, no-obligation application today and we will compare finance packages on your behalf! Once you’re happy with the lowest rate offered, you can choose any car from any FCA dealership in the UK – it really is that simple!