bad credit Car finance
Rates from 9.9% APR. Representative APR 19.2%. Smooth Car Finance is a credit broker, not a lender.
Affordable car loans for bad credit & low income
At Smooth Car Finance, we specialise in helping people with bad credit get approved for car finance. We understand that bad credit shouldn’t stand in the way of owning a car. While your credit score may affect the loan terms, we’ll strive to help you find the best deal suited to your financial situation. Our pre-approval process is quick and easy, and we offer flexible options.
What is bad credit?
Your credit score is a number that reflects your history of borrowing and repaying money. It's like a financial report card that lenders use to assess how likely you are to repay a loan. Bad credit typically refers to a lower credit score, which can be caused by factors like:
- Missed or late payments on bills or loans
- Defaults on loans or credit cards
- Maxing out credit card limits
- Having a limited credit history (not enough accounts)
- Recent credit inquiries (too many applications can lower your score)
How does bad credit impact car finance?
When you have bad credit, it can make getting car finance more challenging in a few ways:
- Approval difficulty: Lenders may be hesitant to approve your loan application due to the perceived higher risk of you defaulting.
- Higher interest rates: If you are approved, you'll likely be offered a loan with a much higher interest rate. This means you'll end up paying significantly more for the car over the loan term.
- Limited options: You may have fewer loan options available, with stricter terms and larger down payments required.
It's important to remember: Bad credit doesn't mean you're completely shut out of getting a car loan. There are still lenders who specialise in financing for people with bad credit. However, it's crucial to be aware of the potential drawbacks and be prepared for potentially higher costs.
Can I get car finance with bad credit?
Let's face it, unexpected events can throw your credit score for a loop. But that shouldn't hold you back from getting the car you need. At Smooth Car Finance, we aim to help you secure affordable car finance.
Here's the good news:
- We will do everything we can to help find you a deal you're eligible for. We understand that bad credit doesn't define you, and we work with a variety of lenders who offer options for all credit situations.
- Our pre-approval process is quick, easy and transparent. Letting you know where you stand upfront and we won't run a hard credit check until your proceed with your quote.
- We aim to offer flexible options. With a variety of loan terms and down payment options, we can tailor a plan that fits your budget and credit history.
What do I need to apply for car financing?
To make an application for car finance, we need very little data:
- Full name and driving licence
- Employment details
- Residential status and address
- Mobile number and email address
You have to be between 18 and 75 years old, be a UK resident for at least 12 months, and receive a monthly income of at least £1,000.
Why should I use Smooth Car Finance?
Make everyday life easier with affordable car finance.
At Smooth Car Finance, we believe a car shouldn't just be a purchase, it should improve your life. Need a reliable ride for the school run? A spacious car for grocery shopping? Or simply a vehicle you're proud of?
We work hard to find you the best eligible deal from our trusted lenders, regardless of your situation. Good credit, bad credit, self-employed, on benefits, or even declined elsewhere – we consider all circumstances.
Plus, you'll get a dedicated account manager to guide you through the process and help you find the car to fit your needs.
Have you got approved?
A dedicated account manager will guide you through the next steps, answer your questions, and help you find the perfect car to fit your needs.
Already have a car in mind?
No problem. Let us know and we'll aim to expedite the loan application.
Need more info before you get started?
We're here to help. Just contact us today.
Car finance loan calculator
*Please note that if you proceed with your quote, a hard credit check will be performed, which may affect your credit score.
Representative example: borrowing £6,500 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed) and a deposit of £0.00, the amount payable would be £166.07 per month, with a total cost of credit of £3,464.37 and a total amount payable of £9,964.37. We compare multiple lenders to help find the best rate available from our panel and offer you the best deal you're eligible for. We earn a fixed or percentage-based commission on the finance agreement, which will not affect your interest rate or total repayment amount. The full commission details will be provided in the commission disclosure document before proceeding with the finance agreement.
HOW IT WORKS
Our Process Is Simple...
Tired of complicated, time-consuming finance processes? We make it quick and straightforward with our three-step approach:
Apply and get approved
Approval takes just minutes. Complete our simple online application, we’ll instantly compare rates and aim to find the best deal for you.
Choose your car from any dealer
Whether you’ve already found your dream car or need help sourcing it, we’ll manage everything for you, from dealer communication to thorough vehicle checks, ensuring a seamless buying experience.
Hit the road in no time
Once the paperwork is sorted, it’s time to collect (or have delivered) your new car. Getting behind the wheel has never been easier.
Frequently Asked Questions
Can I get car finance with bad credit?
At Smooth Car Finance, we work with a variety of lenders who specialise in offering finance to people with less-than-perfect credit histories. While your credit score may affect the loan terms, we’ll aim to help you find the best deal suited to your financial situation.
Will my bad credit affect the interest rate I’m offered?
Having bad credit can impact the interest rate you're offered. Lenders may charge higher interest rates as they perceive you as a higher risk. However, we work with lenders who offer competitive rates for individuals with bad credit, and our team will aim to help you find the most affordable options available.
Do I need a large deposit to get car finance with bad credit?
Not necessarily. While some lenders may require a small deposit, many of our partners offer no deposit car finance options. The amount of deposit required will depend on various factors, such as the loan amount, the type of car you're purchasing, and your credit profile.
Will applying for car finance with bad credit affect my credit score?
When you apply with Smooth Car Finance, we conduct a soft credit check to pre-approve you for a loan, which won’t affect your credit score. A hard credit check, which may impact your score, is only performed when you proceed with an offer from a lender.
Can I get car finance if I’ve been declined elsewhere?
You can still apply for car finance with Smooth Car Finance even if you've been declined by other lenders. We understand that bad credit can be challenging, but our lenders specialise in helping individuals in your situation, and we’ll work hard to find you a solution.