Can I get car finance with poor credit?

Credit Advice

We help thousands of people get car finance each year who have poor credit. While it is more difficult, credit score isn't the only factor lenders consider. Here we take a further look.

Can I Get Car Finance with Poor Credit?

Applying for a loan with poor credit can be challenging. Lenders typically assess applications using a credit reference agency, making it difficult to secure financing without your credit score being a factor.

However, Match Me Car Finance has a strong track record of helping individuals with poor credit find car finance options. Even if you have CCJs, defaults, or IVAs, we can connect you with lenders willing to offer finance, proving that a poor credit score doesn’t have to be a roadblock.

How to Check Your Credit Score

Regardless of your credit rating, we always recommend checking your score before applying for finance. In the UK, three Credit Reference Agencies (CRAs) track and report your credit score:

  • Equifax

  • Experian

  • TransUnion

You can also check your credit score for free through the following partner sites:

  • ClearScore (Equifax)

  • MSE’s Credit Club (Experian)

  • Credit Karma (TransUnion)

By regularly reviewing your credit report, you can ensure accuracy and take proactive steps to improve your financial standing.

What Affects Your Credit Score?

Your credit score is updated monthly and can fluctuate based on multiple factors. Key influences include:

  • Existing loans and finance agreements

  • Repayment history on loans, credit cards, and utility bills

  • Moving house frequently

  • Opening new credit accounts

  • Credit utilization rate (the percentage of available credit you’re using; ideally under 30%)

  • Length of credit history

  • Types of credit accounts (e.g., credit cards, installment loans, revolving credit)

Each CRA may report slightly different scores due to variations in the data they receive from lenders. Additionally, missed payments from years ago may have less impact over time, but maintaining a consistent repayment history is crucial.

What Doesn't Affect Your Credit Score?

Some financial factors do not impact your credit score, including:

  • Your salary

  • Student loans

  • Medical history

  • Criminal record

  • Council tax arrears

  • Parking or driving fines

While lenders may consider these factors when evaluating loan applications, they won’t influence your credit score itself.

Does Applying for Car Finance Affect Your Credit Score?

Applying with Match Me Car Finance doesn't impact your credit score. You can freely browse cars and financing options without worrying about harming your score. However, if you do go ahead and take out car finance then this will impact your credit score.

How to Improve Your Credit Score

If your credit score needs improvement, here are some practical steps:

  • Make regular payments on time - this shows lenders you are a responsible borrower.

  • Use less credit - aim to use less than 30% of your available credit.

  • Register to vote - being on the electoral roll verifies your identity and address.

  • Build credit history - having a longer credit history strengthens your profile.

  • Check for errors on your report - mistakes, such as incorrect addresses, can lower your score.

  • Apply for credit carefully - too many applications in a short period can be a red flag.

Related Questions

What proof of income do I need to provide for car finance?

Most lenders will require you to provide proof of income, usually from a recent payslip or bank statement. If you are self-employed they may also ask for a tax return.

What are the basic eligibility criteria for car finance in the UK?

Most lenders will consider someone eligible if they're over 18 years old, a UK resident with 3 years address history and 12 months employment history. They must usually hold a full UK driving licence.

Is there a minimum income requirement for car finance?

Yes, most lenders impose a minimum income requirement for car finance to ensure applicants can afford the monthly repayments, usually between £1000 to £1500 per month after tax.