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No credit check car finance

Car finance can make buying a new car more affordable, and you can even apply without affecting your credit score. In this article, we’ve explained when we perform a soft and hard credit check and how Zuto can help you can get car finance with poor credit.

Does Zuto offer no credit check car finance?

To begin with, it’s important to highlight that no reputable broker or lender will offer car finance without performing a hard search at any point. However, at Zuto, we’ll only conduct a hard search when you’re happy to proceed and provided consent.

Instead, we’ll assess your affordability with a soft search, which doesn’t have any impact on your credit profile and can’t be seen by lenders. This means you can confidently apply for car finance with bad credit without worrying about how it’ll affect your credit score.

Is a credit check required for car finance?

A soft credit check is required to assess your eligibility for car finance, followed by a hard search for each application we process. The reason for this is to ensure you never enter an agreement that will place you in difficult financial circumstances. A soft search can potentially take only 60 seconds, though, so we can offer an indication of your eligibility almost instantly.

Soft credit check vs hard credit check

A soft search takes part in the initial stages of your credit application, and gives an early indication to lenders as to your current financial position. However, because it’s not particularly rigorous, it doesn’t necessarily take a deep dive into the details of your profile and only provides an overview. The great benefit of this, though, is that a soft search won’t show up on your credit report.

A hard search, on the other hand, is a more thorough analysis of your profile to give lenders complete assurance of your creditworthiness, performed after you’ve agreed to either a HP finance or PCP finance arrangement. Importantly, unlike a soft search, a hard check does appear on your credit profile.

What credit score do I need to be approved for finance?

Because each customer is considered on an individual basis, depending on the amount they want to borrow and their overall circumstances, there is no exact figure that guarantees a successful car finance application. If you’re wondering about your score, however, some simple tips to improve your credit rating include:

  • Avoid maxing out your credit limit each month.
  • Try not to become reliant on your overdraft.
  • Aim to settle any outstanding credit disputes immediately.

What to do if you’ve been rejected for car finance before

If you’ve been rejected for car finance before, it’s only natural that you might be a little apprehensive about making another application, especially if you’re worried about your credit score. However, there are a couple of simple ways you can improve your circumstances this time around:

  • Request a lower loan amount and consider applying for a more affordable car.
  • Offer a bigger deposit up front to reduce the amount you’ll have to pay back on finance.

While no credit check car finance might not be available, that doesn’t mean you can’t take steps to improve your chances of being approved.

How to apply for car finance with Zuto

Applying for car finance with Zuto couldn’t be easier. Complete our online application form, and we’ll give you a decision within 60 seconds. If you’ve any questions about the process, don’t hesitate to get in touch with our team, or check out even more help and advice from our car buying experts.

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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