Bad Credit Car Finance
Car Finance With Bad Credit
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Your Guide To Bad Credit Car Finance🚘
Find the information you need:
👉 Bad Credit Car Finance Calculator
👉 Reasons For Bad Credit
👉 Pros And Cons Of Bad Credit Car Finance
👉 Types Of Bad Credit Car Finance
👉 Guaranteed Car Finance For Bad Credit
👉 CCJ Car Loans
👉 Bad Credit Support Guides & FAQs
👉 What Is A Credit Score?
👉 Can I Get Car Finance With No Credit History?
👉 How To Improve My Credit Score
👉 Credit Score Support Guides & FAQs
What Is Bad Credit Car Finance?🤔
Bad credit car finance is a financing option designed for individuals with low or poor credit scores, often referred to as "bad credit." Bad credit car finance is a type of car finance that is available to people with a less-than-perfect credit score. Having bad credit can make it harder to get car finance, and approval is never guaranteed.
If you have bad credit, check your options before applying for bad credit car loans. Interest rates may be high, or you could try to improve your credit score. Learn more about improving your credit score here.
How Your Finance May Look
Car Finance Eligibility Checker🔍
Paperwork You Need For Car Finance
To get car finance, you will need the following paperwork:
- Personal details.
- Proof of identity (a driving licence is the best way to go).
- Proof of income (payslips and bank statements).
- Proof of address (a utility bill will show this).
Why Choose Marsh Finance 💜
Marsh Finance has provided finance to customers for over 50 years and, in that time, has seen a wide range of credit scores. Where other finance companies see a less-than-perfect credit score as a stumbling block, we take in the full picture of a customer’s application. While we cannot promise a positive application, we consider credit scores of all levels. Our soft credit search at the point of application also protects your already fragile credit file at a time when you need it most.
Reasons For Bad Credit
Having bad credit can happen for many reasons. The main cause of a poor credit score is missing payments or failing to pay off a loan or finance agreement. Other factors can also lead to bad credit, such as:
- No credit history.
- Previous bankruptcy.
- Having a CCJ against you.
- Moving home regularly.
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Pros Of Bad Credit Car Finance
✅ You can improve your credit score whilst paying off your finance. Making monthly repayments on time can help build your credit score back up.
✅ You can spread the cost of a car over a long period of time, making payments more manageable at a time when you need it most.
✅ It encourages responsible use of finances. If you are considering bad credit car finance, past financial decisions might not have led you down the best path. Committing to monthly payments can teach new responsible money practices that you can take into different areas of your life.
Cons Of Financing With Bad Credit
❌ Lenders can’t be sure you’ll repay what you owe, so they may charge higher interest rates to protect themselves from the risk. This means you may face higher costs than someone with a better credit score.
❌ If the value of the financed car falls quicker than the future value set out by your lender, you could end up in negative equity. This means you owe more on the car than it’s worth, making it harder to trade in or switch to a new car.
❌ If you can’t meet repayments, your credit score and financial situation could get even worse.
Types Of Car Finance I Can Get With Bad Credit 💭
Bad Credit Hire Purchase
HP 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. Once all payments are made, you own the car. HP car finance is great for flexible payment options, a low or zero initial deposit, and no large payment at the end. It's important to know that missing payments on a hire purchase agreement can hurt your credit score. Plus, you're tied to the car until all repayments are made.
Learn more about Hire Purchase car finance.
Guaranteed Car Finance For Bad Credit 🚗
Ever heard the term guaranteed car finance and thought, is this really possible? The short answer is no; guaranteed car finance does not exist. Every lending company is different, and their lending criteria will differ. It's against the law to suggest that you provide guaranteed car finance. If you see a car finance lender advertising guaranteed car finance, be wary of it. Car finance can’t be guaranteed to everyone, as people with bad credit can often see their application rejected. Be especially wary of guaranteed car finance for bad credit being advertised. If your credit score is poor, consider your next finance steps carefully. If you have been rejected for bad credit car finance in the past, we might be able to help. We consider a range of credit scores, with a soft credit search at the point of applying, helping you protect your credit file whilst searching for your new wheels.
What Is A CCJ? CCJ Car Finance
If you owe money and do not repay, you can end up in court and could receive a county court judgement (CCJ). If the CCJ is correct, you will need to repay the amount before taking out any loans in future. Paying back straight away is key in protecting your credit score too, as you could avoid it going on your credit file at all (if you pay in full within one month). If a CCJ is on your credit file, you might be wondering: how does this impact my chances of car finance?
Car finance with a CCJ can be tricky, as lenders see you as a risky person to lend to. A CCJ will hurt your credit score, leaving you looking for bad credit car finance. Although it’s not entirely impossible to get CCJ car loans, it will be harder to get than for someone with a stronger credit score. This isn’t the end of the road, though, as you can take steps to get your credit score back on track.
Applying for CCJ car finance is the same as any normal finance application and can be done online via a simple form. Once you have applied for CCJ car finance, credit checks will uncover your CCJ and your application will either be accepted or rejected. At Marsh Finance, we consider CCJ car finance applications, but approval depends on your circumstances, and it isn’t guaranteed. Since we know your credit score may already be fragile, checking your eligibility for car finance won’t impact your credit score—helping protect your score while you find the right car finance deal. Check your eligibility.
Bad credit loans are available, but they often come with higher interest rates to protect lenders from risk. We consider applicants with County Court Judgments (CCJs), making us a strong choice for those with less-than-perfect credit.
Check your eligibility today with no impact on your credit score!
Getting a car on finance is possible—you’ll just need to apply online. Once you apply, a lender will review your file and decide whether to approve you.
If you have bad credit, approval may be harder to get compared to someone with a better score. While we don’t specialise in bad credit finance, Marsh Finance considers applications from all credit backgrounds and will do our best to help.
Getting a car on finance is definitely possible and will require an application online. Once you have applied, a lender will review your file and make a decision on your application. If you have bad credit, your chances of being approved for car finance are lower than for someone with a positive score. To help your chances of getting car finance with bad credit, choose Marsh Finance, which reviews credit scores of all ranges.
Getting car finance with bad credit is harder than if you had a better score, as lenders see you as more risky to lend to. This doesn’t mean that bad credit car finance isn’t possible though.
There is not guaranteed car finance for bad credit, and you should stay clear of any lenders advertising guaranteed car finance in any form.
Marsh Finance offer a hire purchase to people with bad credit. Hire purchase agreements are traditional finance methods, where the car is yours once all car finance payments are made.
Bad credit can happen for plenty of reasons. Here are some of the most common causes of bad credit.
- No credit history.
- Bankruptcy.
- Having a CCJ (County Court Judgement).
- Not paying off past loans.
You can find out your credit score for free online at multiple different sites. Here are some of the top picks for finding out if you have bad credit.
🔗 Experian
🔗 ClearScore
🔗 Credit Karma
🔗 Equifax
🔗 Money Saving Expert
The paperwork needed for bad credit car finance is exactly the same as any other type of finance. To get car finance, you will need the following paperwork:
- Personal details.
- Proof of identity (a driving licence is the best way to go).
- Proof of income (payslips and bank statements).
- Proof of address (a utility bill will show this).
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.
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 open to CCJ car finance applications. Get in touch with us to see how we can help you achieve your car dreams.
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.
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Check Bad Credit Eligibility Today
Get on the road to a new car, even with a less than perfect credit score.