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Pre-application Support

What should I do if I have been refused for car finance before?

When you apply for car finance, the decision a lender comes to is always based on your personal circumstances. However, there are some common reasons why you might have been refused car finance which we want to make you aware of:

  • Having a bad credit score is the most likely reason for being refused car finance. Having a poor credit score could be down to something simple like not being on the electoral roll, or it could be because you’ve been made bankrupt in the past or have defaulted on a payment. Having a bad credit score doesn’t mean you can’t get car finance; it just means your options will be more limited than those with a better score. Zuto work with a large panel of lenders who help thousands of customers with bad credit get car finance.
  • You may have tried to borrow more than the lender thought you could afford based on your personal circumstances. As Zuto work with such a large panel of lenders, we can work with you and the lender to discuss how much you are able to borrow based on your personal circumstances. This might mean a compromise on the car you’ve seen, or could mean a bigger deposit is required, but we’ll work with you to find the best deal possible from our panel.
  • A lot of customers look for no deposit car finance, however some lenders require you to pay a deposit to secure the vehicle you are looking at. If you are unable to pay this deposit, this is a reason you might have been refused car finance in the past. Zuto work with approved dealerships across the UK and can help you find the right car based on your individual needs and the lenders requirements.

What can I do to not be refused again?

If you’ve been refused car finance in the past then this may have left a mark on your credit file which lenders will be able to see. There are a couple of things you can do to improve your chances of being approved for car finance.

A benefit of applying for car finance with Zuto means your credit score won’t be impacted upon initial application. Once we search our panel of lenders, if we can find a car finance product for you, we will take you through the details and if you’re happy to proceed, then at only that point will your credit score encounter a hard search.

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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