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Our Bad Credit Promise 💜

We understand that all credit scores are different. Choosing to get bad credit car finance with Marsh Finance would see you receive one-to-one support, to find a finance agreement that suits you. Bad credit shouldn't mean the end of your chance of finance. Apply today with no impact on your credit score and receive the experience of a bad credit expert.

What Is Bad Credit Car Finance?

If you have a poor credit score, you might be worried that it will stop you from getting the car finance you need. Bad credit car finance works like regular car finance but is for people with a low credit score or no credit history.

At Marsh Finance, we understand that everyone's financial situation is unique. If you have bad credit, we’ll work with you to explore car finance options that may be available.

While we'll do our best to find a suitable solution, it's important to remember that approval is not guaranteed. Having bad credit can make the approval process more challenging.

How You Can End Up With A Poor Credit Score🤔

One of the most common causes of bad credit is missing payments.
Missing payments tells lenders you are less likely to pay your finance agreement on time. This doesn’t mean you can’t be trusted, though, as everyone’s financial circumstances are unique.
We think that everyone should have the ability to buy their dream car, even those with bad credit. Taking out car finance and paying your bills on time can actually help you improve your credit score.
Check if you’re eligible for car finance without impacting your credit score now.

 

Reasons for a bad credit score👇.

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How Do I Know If I Have Bad Credit?

Getting a credit check is super easy. There are lots of websites that provide a credit check for free, allowing you to get a quick score based on some straightforward questions. Some of the best free credit score checkers are:

🔗 Experian
🔗 ClearScore
🔗 Credit Karma
🔗 Equifax
🔗 Money Saving Expert

How Can I Improve My Credit Score? 📈

Improving your credit score takes time. It’s important to manage your finances well. Credit scores change slowly, so be patient. You might not see changes right away, but over time, your efforts will pay off.

These are some of the best things you can do to improve your credit score:

  • Pay bills on time: This shows lenders that you are responsible with repayments whilst improving your credit score.
  • Keep your credit card balances low: Try to spend less than 30% of your credit limit, which will show lenders that you use credit responsibly.
  • Build a strong credit history over time: Using credit cards and paying them off every month is a fantastic way of improving your score in the short term, month by month.
  • Check your credit report regularly: Be constantly aware of your credit score and make adjustments if necessary. Also, be aware of anything that doesn’t look quite right and report anything suspicious.
  • Don’t apply for credit constantly: Regular credit applications could see multiple hard credit checks being present on your file. This isn’t good for your loan prospects, as it shows the lender that you are always borrowing money and may not be able to meet their repayments due to existing commitments.

We've written some helpful pieces on credit scores, which you can find below.

How Does Your Credit Score Affect Your Finance?
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How Does Your Credit Score Affect Your Finance?

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Understanding Credit Scores: What Is A Good Credit Score?

Direct Debit & Credit Scores: A Comprehensive Guide
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Direct Debit & Credit Scores: A Comprehensive Guide

Boosting Your Credit Score With A Very Or Littlewoods Account
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Boosting Your Credit Score With A Very Or Littlewoods Account

Can I Get Car Finance If I Have Bad Credit?

You can! Bad credit car finance is a popular option for those with a less-than-perfect credit score who want a car. Bad credit car finance lets you choose terms that fit your budget.

Marsh Finance has helped customers with poor credit achieve their car dreams, and you could be next. We view every application individually and are committed to finding a solution that works for your specific circumstances. While this isn’t a guarantee of a loan, it is a promise to treat you as an individual and understand your financial circumstances. Check if you’re eligible for bad credit car finance today with no impact on your credit score.

Types Of Bad Credit Car Finance 🚗

Even if you have bad credit, you can still access the same car finance options as everyone else. Here at Marsh Finance, we offer both hire purchase (HP) and personal contract purchase (PCP). Let’s take a look at each one and help you choose what’s best for you.

This is a popular choice for people looking to buy a new or used car. In an HP agreement, you usually pay off your loan over a one to five-year period, with ownership of the car going to you once you make all your repayments. HP is great for flexible payment options, a low initial deposit, and no final balloon payment. However, with HP, your credit score will suffer if you miss payments, and you are tied to your car until all repayments are made.

Take a look at HP car finance in more detail via our dedicated page.

 

PCP is slightly different in that you have three options at the end of your agreement: return your car, pay a final balloon payment and own it, or trade it in for something new. PCP monthly payments are lower than HP agreements, but this difference is covered by a balloon payment at the end of the agreement. The balloon payment will never change throughout the agreement though, so you can build towards it whilst paying off lower monthly payments than HP.

See if PCP car finance is right for you by visiting our PCP page.

The Pros And Cons Of Bad Credit Car Finance

There are plenty of arguments for and against bad credit car finance, and whether it is the right option really is up to you and your circumstances. Thankfully, Marsh Finance is here to personalise your finance process and find a solution that suits you and your money.

Nevertheless, let’s take a look at the pros and cons of bad credit car finance.

Pros Of Bad Credit Car Finance
Cons Of Bad Credit Car Finance
Improve your credit score whilst driving your new car. Making repayments on time will improve your score month on month whilst driving your new wheels. This can come at a perfect time if you have bad credit.
Higher interest rates and less favourable terms are likely as lenders look to offset the risk of lending to you. This means that you are paying more over time than someone with a better credit score.
The ability to spread the cost of a car over a monthly period can help you save much-needed cash for other expenses like housing bills and the cost of living.
There’s a risk of negative equity if the value of your car falls quicker than the Guaranteed Minimum Future Value. In this case, you might struggle to move on to a new loan in the near future.
Teaches you to manage your finances responsibly. It’s safe to say that if you are considering bad credit car finance, your finances are not quite where you’d want them to be, but this is fine! Having bad credit car finance can help you build towards better control of your finances.
Potential further financial strain if you can’t meet repayments. With an already low credit score, anymore money problems could see your score fall even further.
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What Type Of Car Can I Get With Bad Credit?

If you have bad credit, it’s best to stick with a cheaper car that is more affordable. Thankfully, Marsh Finance offers car finance on vehicles worth £5,000 and under, meaning that your monthly repayments could be as little as £100 per month. Take a look at some of these cost-effective models via our car marketplace.

Dream Car (21)

How Do I Apply For Bad Credit Car Finance?📲

Applying for finance with bad credit is easy. Simply visit our application form and apply in under 30 seconds. It doesn’t impact your credit score to check if you’re eligible, and you'll receive a decision the same day. Answer a few questions and sit back and relax—we’ll take it from there.

Our Bad Credit Calculator

Have a play with our bad credit calculator and see what your car finance could look like.

Car Finance Calculator

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Why Choose Us For Bad Credit Car Finance? 👐

Marsh Finance takes pride in supporting customers with less-than-perfect credit scores find their dream car. Our personalised approach helps you get the finance that you deserve.

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Bad Credit Car Finance FAQs

How do I get a car loan with bad credit?

Getting a car loan with bad credit can be difficult, but you can check your eligibility for bad credit quickly and easily here. We’ll get back to you with a decision the same day, with no impact on your credit score.

Do bad credit loans exist?

Bad credit loans do exist. They do, however, usually come with higher interest rates to guard against the risk the lender is taking. We proudly provide finance to those who have received a county court judgement, making us well-placed to help you navigate your car options with a less-than-perfect credit score. Get in touch today to see how we can help you with no impact on your credit score.

What is a good credit score?

A good credit score is generally one that scores above 800. Credit ranges change depending on who you are using for a check, but generally, a score of above 800 shows that you are responsible with credit.

What credit score do I need for car finance?

There’s no set score that’s needed for car finance. Obviously, a higher score will increase your chances of car finance, but a lower score doesn’t completely rule out your chances either.

How do I check my credit score?

You can get a credit check online quickly and easily. All you have to do is answer a few questions, and the calculator will do the rest. Some of the best credit check sites are:

How do I improve my credit score?
  • Get on top of your payments.
  • Cancel any payments that aren’t essential.
  • Consider a credit card that you can afford to pay off every month.
  • Cancel subscriptions you don’t need.
  • Reduce how often you apply for credit.
  • Take a look at your credit report and make sure there are no inaccuracies.
  • Make sure you’re on the electoral register.
  • Pay off any existing debts.
What is a county court judgement (CCJ) and how does this affect my credit score?

A county court judgement is a summon to court over missed payments. This only happens when the repayment has been missed for a significant amount of time, and you could see a mark appearing on your credit score for six years (if you fail to attend). A CCJ will hurt your credit score and be visible to any potential future lenders when they run a credit check.

Can I get car finance with a CCJ?

You can get car finance with a CCJ, but you will likely face higher interest rates. It’s important, therefore, to make sure you can afford finance before entering an agreement. Marsh Finance is one of those companies offering CCJ car finance. Get in touch with us to see how we can help you achieve your car dreams regardless of your credit score.

 

How does car finance affect my credit score?

When you initially apply for car finance, a hard credit check might take place. This shows up on your file to future lenders and shows that you have asked for a loan in the past, which could hurt your chances of finance. Thankfully, a lot of companies like Marsh Finance only undertake a hard credit check when you are ready to sign for your car. This means you can apply with the comfort of knowing it won’t appear on your credit file.

Car finance can hurt your credit score if you fail to make your payments on time. On the other hand, it can improve your credit score if you make your payments on time.

 

 

What are the types of car finance I can get with bad credit?

Hire purchase and personal contract purchase are available to those with bad credit. Both involve monthly payments, but the end of an HP agreement only has one option: own the car. PCP, on the other hand, has three options: pay off the balloon payment and own the car, return the car or trade it in. In the case of bad credit, both finance types have their pros and cons, with PCP having lower payments but a large end payment and HP having a deposit followed by slightly higher payments but no final lump payment. Take a look at HP and PCP in more detail and see which one suits you best.

 

 

 

 

How does bad credit affect car finance interest rates?

If you have a bad credit score, you will likely see higher car finance interest rates offered to you than to someone with a better credit score. A higher interest rate is a way for the lender to reduce the risk of taking you on by increasing how much you pay every month.

What are the differences between a soft credit check and a hard credit check?

A soft credit check is one which doesn’t appear on your credit score, and a hard credit check is one that does. A hard credit check is visible to future lenders on your credit report, so it’s vital that you only undergo a hard credit check when you are certain that you want to finance. We took a closer look at hard and soft credit checks in a seperate piece, read it here.

Thankfully at Marsh Finance, you can apply without a hard search occurring until you sign the dotted line, helping protect your credit score as much as possible. Apply for car finance and receive a decision today without impacting your credit score.

 

Get Bad Credit Car Finance Today 🚀

Take advantage of our soft credit checks and apply for finance in under 30 seconds. We’ll assess your application and see how we can help, and we'll get back to you the same day.

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