Zuto is a credit broker, not a lender. Our rates start from 10.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £6,500 over 48 months with a representative APR of 19.9%, the amount payable would be £192 a month, with a total cost of credit of £2,712 and a total amount payable of £9,212.
Bad credit car finance allows people with a low credit score to buy a car. Instead of paying for the car in full with their own money, they can pay using a loan from a finance company, and pay it back in monthly instalments, plus any interest.
Even if you have a bad or poor credit score, there are three types of car finance you may be able to apply for:
At Zuto we understand that millions of people rely on their cars, whether that be to take their kids to school, or getting to and from work each day, which is why we want each of our customers to understand the ins and outs of car finance before applying.
If you have a poor credit history, getting car finance can be more difficult. However, some lenders specialise in providing car finance to people with bad credit.
Our team are experienced in helping drivers find the right car finance deals from our panel of lenders and accept applications for people with defaults, County Court Judgments (CCJs), Individual Voluntary Agreements (IVAs), mortgage arrears or late payments on their credit history.
Every day, we help drivers in search of car finance to secure the arrangement they need for the car they want. By getting to know you and your financial situation, we can search our panel of lenders to try to find you the best car finance offer based on your personal circumstances.
Understanding how applying for car finance affects your credit score, why you may have been refused finance in the past, and what you can do to improve your credit score moving forward should all help in improving your chances of being approved for car finance.
You can also find more information in our guide, Impact to credit scores when applying for car finance.
If you haven’t already, you can check your credit score and report, for free, with our trusted partner, ClearScore.
With Zuto, you can apply for car finance without impacting your credit score.
After completing your application, we’ll approach our panel of lenders to find the best available options for your personal circumstances.
If you proceed, we will need to perform a hard search, which will impact your credit score, but we will always ask for your consent beforehand.
If you’ve been refused car finance before, it might be because you:
We go into this in more detail in our help and advice section.
There are some simple ways you can try to improve your credit score:
A ‘hard search’ credit check is when a lender looks at your credit report and score. This leaves a mark on your report – usually for a year – meaning lenders can see when you’ve applied for credit and whether it was successful.
Can I get car finance with a CCJ?
Yes, you can get car finance with a County Court Judgment (CCJ), but it can make being approved harder.
Zuto works with a large panel of lenders who help customers with a lower credit score.
You can find out more in our guide to ‘Can I get car finance with a CCJ?’.
Can I get car finance with an IVA?
You might be able to get car finance with an Individual Voluntary Arrangement (IVA), but it does make it more difficult.
It isn’t impossible, though. At Zuto we work with a large panel of lenders who specialise in providing finance to customers with a bad credit history.
Visit our help and advice section for more information about IVA car finance.
Can I get car finance if I’ve been made bankrupt?
If your bankruptcy has ended and you’ve been discharged, you can apply for car finance again.
We recommend you wait 12 months to try to build up your credit score again – you can find more help and advice in our car finance bankruptcy guide.
Can I get car finance if I have a default?
You can apply for car finance if you have a default but your chances of being approved are likely to be lower due to the default itself impacting your credit score.
For more information on applying for car finance with a default visit our guide which goes into this subject in more detail.
Can I get car finance with poor credit?
Car finance depends on your personal circumstances. We help many people with poor credit to find a car finance deal that works for them.
You can apply for car finance with Zuto without impacting your credit score. We’ll then approach our lenders and share the options with you. If you decide to proceed, we’ll perform a ‘hard search’, which is when your credit score could be affected.
What credit score is too low for a car loan?
There is no set limit for car loans – it depends on your personal circumstances.
You can apply for car finance with Zuto without affecting your credit score. If you’re eligible for car finance, you can then proceed and we’ll carry out a ‘hard search’, which can affect your credit score.
Is it hard to get accepted for car finance?
In general, you are more likely to be accepted for car finance if you have a good credit score.
It can be more difficult for those with a poor or bad credit score, but – as a broker – Zuto is able to help find potential options for you to save you time.
If you want to find out more, read our car finance eligibility page.
