Struggling with bad credit? At Zuto, we specialise in helping individuals secure car finance, even with a less-than-perfect credit history.
Zuto is a credit broker, not a lender. Our rates start from 12.9%. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £8,000 over 60 months with a representative APR of 22.6% the amount payable would be £214 a month, with a total cost of credit of £4,864 and a total amount payable of £12,864.
Bad credit car finance is designed for individuals whose credit scores may be less than perfect. Traditional lenders often view applicants with poor credit histories as high-risk, which can make it challenging to secure financing. However, Zuto works with a panel of specialist lenders who consider your current financial situation and affordability, rather than solely focusing on past credit issues.
Poor credit means having a low credit score, which can make it harder or more expensive to borrow money – you might face higher interest rates or sometimes require deposits.
Credit reference agencies track your borrowing and repayment history to calculate your score. Consistent, on-time payments improve it, while missed payments lower it. Interestingly, having and responsibly managing credit often results in a better score than having no credit history at all.
Each UK credit agency has its own scoring system, so there’s no universal “bad credit” score:
| Experian | Equifax | TransUnion |
Bad | 0-640 | 0-438 | 0-550 |
Poor | 641-860 | 439-530 | 551-565 |
You can check your credit score for free through Experian, Equifax, or TransUnion to monitor your progress. While applying for credit can affect your score, Zuto uses a “soft search” to begin with, which allows you to check your eligibility and see if you’ll be accepted without impacting your credit score.
With bad credit car finance, you can still access a loan to purchase a vehicle, even if your credit history isn't perfect. Here's how it works:
While interest rates may be higher for bad credit car finance, it's an opportunity to rebuild your credit score by making regular, on-time payments
Use our Bad Credit Car Finance Calculator to estimate your monthly repayments based on your budget and loan term.
A selection of reviews from customers who we've helped get car finance with bad credit.
Step 1: Check Your Eligibility
Fill in a quick online form with a few personal details. Zuto will run an initial soft credit check (so it won’t affect your credit score) to see what bad credit options you might qualify for.
Step 2: Get a Personal Quote
If you’re eligible, you’ll be offered tailored finance options from Zuto’s panel of lenders – including PCP and HP plans suitable for those with bad credit.
Step 3: Choose Your Car
You can either find a car yourself or browse vehicles through Zuto’s trusted dealer network, knowing which cars fit your budget. Zuto’s friendly team of Car Buying Experts are on hand to help to find your next car.
Step 4: Secure Your Finance
Once you’ve chosen a car, Zuto will handle the paperwork with the dealer and lender, ensuring the finance agreement is set up smoothly.
Step 5: Drive Away
Pick up your new car and start your journey, with your agreed monthly repayments beginning on your scheduled date.
Find out what our customers are asking when it comes to applying for car finance with bad credit.
Credit scores are a sliding scale, so the worse your credit, the higher interest rate you may have to pay. If you improve your credit score, you may have access to lower rates. However, actual rates will depend not only on your credit history, but also the lender itself. The terms of the loan and your income stability will also be a factor in the rate you pay.
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.
Getting car finance with no credit history can be more challenging, as lenders have no record of how you manage borrowing or repayments. However, it’s not impossible. By understanding your personal and financial situation, we can search our panel of lenders to find car finance options that may suit you and your circumstances.
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.
If you’ve been refused financing on a car before, it might be because you:
We go into this in more detail in our guide: what should I do if I’ve been refused car finance before?
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.
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.
Getting car finance with very bad credit can be hard but is not impossible. Car finance depends on your personal circumstances. With over 15 years’ experience, we’ve helped thousands of customers find bad a credit 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.
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.
Unfortunately, we can’t offer a guarantee that you’ll be able to get a car finance deal 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.
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.
While the restrictions placed on your finance due to poor credit may seem limiting, there is one key advantage to bad credit financing.
As financing requires regular repayments, you’ll be able to start improving your credit score from month one. Missed payments are a key reason for low credit scores, but by making repayments you know you can afford each month, you should soon start improving your score.
Yes, it is possible to get car finance with bad credit and no deposit, although it might be more challenging. Some lenders may require a deposit to reduce the risk, but others might offer no-deposit options. Keep in mind, without a deposit, you may face higher monthly repayments or interest rates.
Yes, you can apply to refinance a car loan with bad credit, but your options may be more limited, and the interest rates may be higher compared to standard loans. Refinancing could help reduce your monthly payments, especially if your credit score has improved since you took out the original car finance deal.
Approval times for bad credit car finance may take longer compared to applicants with good credit because lenders need to carry out more detailed checks to assess affordability and risk. However, with Zuto, we work quickly to get approvals for bad credit car deals, and the process can still be efficient.
Yes, being self-employed doesn't prevent you from getting car finance for bad credit, but lenders will likely ask for additional documents, such as tax returns or proof of income stability. Your credit history and affordability will still be key factors in your application.
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?
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.
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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