Handing over car keys to new owner

Bad credit car finance

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    Check your eligibility with no impact on your credit score
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    All credit histories and circumstances considered

Zuto is a credit broker, not a lender. Our rates start from 9.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £7,500 over 48 months with a representative APR of 21.4% the amount payable would be £226 a month, with a total cost of credit of £3,369 and a total amount payable of £10,869.

Can I get car finance if I have bad credit?

Yes you can! In fact, over the last 12 months, we’ve helped more than 100,000 customers* with poor credit get approved for car finance. This is because lenders take more than just your credit score into account, considering other factors such as affordability, credit utilisation, and payment history of other credit products.

Instead of paying for a car outright with your own money, you can pay using a loan from a lender, repaying the amount borrowed in affordable monthly instalments (plus any interest).

At Zuto, you can apply for finance online or by calling our team on 01625 619 944. If approved, we can guide you through the process step-by-step, to ensure you get the right car, no matter your credit situation.

*data accurate as of September 2022.

Why choose Zuto?

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    Get answers fast

    Financing a car should be simple and straightforward. We’ll guide you through the entire process as soon as you’re approved, from filling out the paperwork to understanding the jargon and small print, so you don’t need to worry about finding a car you love.

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    Expert advice

    We know finding and buying a car isn’t always easy, so we’ll help you make the right choice. We offer impartial advice while checking your chosen vehicle’s history and valuation for free.

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    It's free!

    We don’t charge any fees for using our service, and never add hidden costs. This means you can make an informed choice without any nasty shocks or surprises.

Customer reviews

A selection of reviews from customers who we've helped get car finance with bad credit.

Types of bad credit car finance

At Zuto, our two most popular finance options are hire purchase and personal contract purchase, but you can also choose to take out a personal loan:

Hire purchase (HP): with hire purchase, you pay regular monthly installments over a pre-agreed period, equal to the cost of the car plus interest. At the end of the term, you’ll own the car outright.

Personal contract purchase (PCP): with personal contract purchase agreements, you also pay regular monthly installments over an agreed term. However, rather than the full cost of the car, the payments are equal to the depreciation of the vehicle plus interest. To own the car outright at the end of the agreement, you’ll need to make a final ‘balloon payment’.

Personal loan: a personal loan is a sum of money borrowed from a financial institution like a bank. The main difference between traditional car finance options and a personal loan is that, with a personal loan, you own the car immediately.

We go into more detail about our two most popular finance options in our guide: What’s the difference between PCP and HP?

What kind of car can I get on finance if I have bad credit?

Whether you’re looking for your first wheels or a family run-around, we can help you find your next car. If you already know what you want, get in touch with our team and we’ll guide you through our lenders’ requirements – and if not, we can help you find the perfect model. Some of the most common models financed by customers with bad credit include:

What is considered bad credit?

There are a number of reasons why you might have poor credit, but it’s typically as a result of historical financial difficulty.

The UK’s three main credit reference agencies each use different metrics to measure credit, so there’s no universal ‘bad credit’ score. However, each has their own bands for bad and poor credit scores:














See how much you could borrow with our handy calculator

How to get car finance if you have bad credit

With Zuto, you can apply online without impacting your credit rating. After completing your application, we’ll approach our panel of lenders to find the options available based on your personal circumstances.

Here is how you can apply for car finance with bad credit today:

  1. Apply online - Zuto carries out an initial soft credit check on your application, which enables us to match you with one of our lenders. This doesn’t affect your credit score but does give us, and you, an idea of what cars for bad credit are available.
  2. Tell us what car you’re looking for– If we approve your application, one of our team will get in touch to discuss potential quotes, as well as talking about the car you’d like to buy. Don’t worry if you haven’t found a car yet, our team can help you with that too!
  3. Choose the right option for you – If you’re happy with the APR and monthly repayments, we’ll help you with all the admin, take care of the paperwork, and negotiate with the dealer to make sure you drive away with the perfect car.

Our team has over 15 years of experience in helping drivers find the right poor credit car finance, and we accept applications for people with defaults, County Court Judgements (CCJs), Individual Voluntary Agreements (IVAs), mortgage arrears, or late payments on their credit history.

Bad credit support articles

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    Can I get car finance if I have bad credit?

    Thinking of getting a new car, but not sure if your bad credit score will stop you getting finance? Read our guide to find out more.

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    Impact to credit score when applying for finance

    Ever wondered how applying for car finance affects your credit score? Our guide explains everything you need to know before applying.

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    Improve your credit score in 15 steps

    Whether you’ve got an excellent or bad credit rating, there are always ways to improve or maintain it – and we’ve picked out 15.

    How to improve credit score

Bad credit car finance FAQs

Find out what our customers are asking when it comes to applying for car finance with bad credit.

Is it hard to get accepted for bad credit car finance?

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In general, you are more likely to be accepted for car finance if you have a good credit score.

It can be more difficult if you have a poor or bad credit score, but, as a broker, Zuto is able to help find potential options for you by searching our large panel of lenders.

Find out more about car finance eligibility.

Can I get car finance with no credit history?

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It can be tricky to finance a car if you have no credit history, but it’s not impossible. By getting to know you and your financial situation, we can search our panel of lenders to try to find a deal which suits you and your personal circumstances.

Can I get finance with a CCJ?

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Yes, you can apply even if you have a County Court Judgment (CCJ), but it can make getting approved harder. Zuto works with a large panel of lenders who can help you if you have a lower credit score.

Find out more in our guide: Can I get car finance with a CCJ?

Can I get finance with an IVA?

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You might be eligible with an Individual Voluntary Arrangement (IVA). At Zuto we work with a large panel of lenders who specialise in this field.

Discover more about IVA car finance.

Why have I been refused car financing before?

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If you’ve been refused financing on a car before, it might be because you:

  • Had a low credit rating
  • Tried to borrow too much.
  • Didn’t have a deposit.

We go into this in more detail in our guide: what should I do if I’ve been refused car finance before?

Can I finance a car if I’ve been made bankrupt?

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If your bankruptcy has ended and you’ve been discharged, you can apply without issue. However, we typically 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.

What if I have a default on my credit profile?

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You can apply for a loan if you have a default, but your chances of being approved are likely to be lower due to the default itself impacting your credit rating.

Discover more information about applying for car finance with a default.

Can I get car finance with poor credit?

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Car finance depends on your personal circumstances. With over 15 years’ experience, we’ve helped thousands of customers find bad credit finance and a car 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?

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There is no set limit for a loan application – it depends on your personal circumstances. You can apply with Zuto without affecting your credit rating; if you’re eligible, you can then proceed, and we’ll carry out a ‘hard search’ which can affect your credit score.

Can you guarantee finance with bad credit?

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Unfortunately, we can’t offer a guarantee that you’ll be able to finance a car with bad credit. This is because we need to run a credit search to determine whether you can afford to make the monthly repayments.

However, if you’re unsure whether you’ll be eligible, feel free to apply and we’ll conduct a soft search. This doesn’t impact your credit score, and gives you an idea of whether you’ll be accepted by one of our lenders.

Find out more in our guide: guaranteed car finance explained.

What’s the difference between a ‘soft’ and ‘hard’ credit check?

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A soft credit check is an initial look at certain information on your credit report. Lenders do this to decide how successful your application would be without conducting a more detailed assessment of your credit history. Soft searches aren’t visible to lenders, so they have no impact on your credit score or any future credit applications you might make.

A hard credit check is a more detailed search of your credit report. Each hard search is recorded on your credit report for two years, so any lender searching in the future will be able to see that you’ve applied for credit.