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Bad Credit Car Finance

Can I apply for car finance if I have a default?

Disclaimer: this guide aims to help you understand the process involved in applying for car finance with a default, but information may not apply to all customers or circumstances.

The good news is, you can apply for car finance if you have a default on your credit file. However, your chance of approval is likely to be lower due to the default.

The default may have left a mark on your credit file and potential lenders will review this when you make an application for credit or finance. Here at Zuto, we work with a large panel of lenders who specialise in bad credit car finance so you’ve come to the right place.

If you have a default recorded against you, it may help your chances of approval, when applying for car finance, by adding a ‘notice of correction’, to your credit file. This is a statement of up to 200 words in which you can offer an explanation as to why the default happened. Lenders will then be able to review this when determining whether to accept your credit application or not.

You can improve your credit score by doing a few simple things such as making sure you’re on the electoral roll or using a credit card little and often, ensuring you’re paying the balance off on time each month. Find out more about how you can improve your credit score. You can also sign up to ClearScore who offer access to your score and report for free.

With a default recorded we also recommend contacting the Lender in question and make the effort to pay the debt, no matter how small a contribution you can make per month. By reducing or satisfying your default balances you will be viewed more favourably by a potential Lender as this shows willingness to repay a debt.


If you have a default, and would like to apply for car finance, doing so with Zuto is quick and easy and won’t affect your credit score.

Written by

Mike Barlow

Content Manager

Mike has worked at Zuto since 2018 and uses his experience within the industry to help customers understand the ins and outs of car finance.

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