Bad credit car finance

We’re a bad credit car finance direct lender that can help you get a car on finance. If you have bad credit or no credit history, we could help.

Bad credit car finance

We’re a bad credit car finance direct lender that can help you get a car on finance. If you have bad credit or no credit history, we could help.

What is bad credit car finance?

If you have a poor credit score, you might be worried that it will stop you from getting the car finance you need. Bad credit car finance can help people with less-than-perfect credit. It is designed for people who may have experienced difficulties in the past, such as missed payments or rejection from other lenders.

Who is eligible for car finance with a bad credit history?

Lenders may see people with no credit history as being a higher risk to lend to as they have no information on how well they usually handle their finances. If this is you, then the car finance offers available to you might be the same as someone who is looking for a bad credit car loan. That’s why you might have to use a bad credit car finance direct lender like Moneybarn.

We’re one of the UK’s biggest lenders of car finance for people with bad credit. We have over 30 years of experience helping people onto a better road ahead, including those across the UK and Northern Ireland.

We could help even if you:

What is bad credit car finance?

If you have a poor credit score, you might be worried that it will stop you from getting the car finance you need.

Bad credit car finance can help people with less-than-perfect credit. It is designed for people who may have experienced difficulties in the past, such as missed payments or rejection from other lenders.

Who is eligible for car finance with a bad credit history?

Lenders may see people with no credit history as being a higher risk to lend to as they have no information on how well they usually handle their finances. If this is you, then the car finance offers available to you might be the same as someone who is looking for a bad credit car loan. That’s why you might have to use a bad credit car finance direct lender like Moneybarn.

We’re one of the UK’s biggest lenders of car finance for people with bad credit. We have over 30 years of experience helping people onto a better road ahead, including those across the UK and Northern Ireland.

We could help even if you:

  • Have missed payments in the past
  • Have had an Individual Voluntary Agreement (IVA)
  • Have had a County Court Judgment (CCJ)
  • Are self-employed
  • Have arrears or an overdraft
  • Are receiving benefits
  • Have experienced bankruptcy in the past
  • Have had a DRO or DMP

To get car finance, you’ll need:

  • Monthly earnings over £1,000 (after tax)
  • To be aged between 20 and 75
  • A full valid UK driving licence
  • 2 consecutive months of payslips

We can finance cars that meet our lending criteria:

  • Priced between £4,000 and £35,000
  • Up to 120,000 miles on the clock
  • No older than 15 years by the end of the agreement

  • Have missed payments in the past
  • Have had an Individual Voluntary Agreement (IVA)
  • Have had a County Court Judgment (CCJ)
  • Are self-employed

  • Have arrears or an overdraft
  • Are receiving benefits
  • Have experienced bankruptcy in the past
  • Have had a DRO or DMP

To get car finance, you’ll need:

  • Monthly earnings over £1,000 (after tax)
  • To be aged between 20 and 75
  • A full valid UK driving licence
  • 2 consecutive months of payslips

We can finance cars that meet our lending criteria:

  • Priced between £4,000 and £35,000
  • Up to 120,000 miles on the clock
  • No older than 15 years by the end of the agreement

How to apply for car finance with poor credit

How to apply for car finance with poor credit

One

Get an online quote in under 5 minutes. We use a soft check at the point of application, which won’t impact your credit score and provides an instant decision.

Two

If you’re approved, use our Vehicle Finder to find your dream car. Our friendly experts will be on hand to help with the search, so you can get onto a better road ahead.

Three

We’ll help you with providing any paperwork and signing your agreement. Once your agreement is finalised, we’ll pay the dealership and you can collect your new car!

One

Get an online quote in under 5 minutes. We use a soft check at the point of application, which won’t impact your credit score and provides an instant decision.

Two

If you’re approved, use our Vehicle Finder to find your dream car. Our friendly experts will be on hand to help with the search, so you can get onto a better road ahead.

Three

We’ll help you with providing any paperwork and signing your agreement. Once your agreement is finalised, we’ll pay the dealership and you can collect your new car!

What type of car finance does Moneybarn offer for bad credit?

Our Conditional Sale (CS) agreement means we pay the dealership for you. You’ll have full use of your car and will be responsible for servicing and maintaining it. As with other types of car finance, you’ll make monthly payments until the total finance amount is paid off.

With our finance agreements, you’ll make fixed monthly payments over 36-60 months. Once you make your final payment, you’ll fully own the car, without having to pay a fee.

Conditional Sale finance at a glance

Your interest rate will be fixed so your payments are the same each month.

Finance is subject to status and affordability checks.

There are no mileage restrictions like other types of finance such as PCP.

You won’t own the car until the final payment is made.

You’ll own the car at the end of the agreement.

You may be offered a high APR if you have bad credit.

There are no late payment charges or hidden fees during your agreement.

The car may be repossessed if you can’t make payments.

What type of car finance does Moneybarn offer for bad credit?

Our Conditional Sale (CS) agreement means we pay the dealership for you. You’ll have full use of your car and will be responsible for servicing and maintaining it. As with other types of car finance, you’ll make monthly payments until the total finance amount is paid off.

With our finance agreements, you’ll make fixed monthly payments over 36-60 months. Once you make your final payment, you’ll fully own the car, without having to pay a fee.

Conditional Sale finance at a glance

Your interest rate will be fixed so your payments are the same each month.

There are no mileage restrictions like other finance types such as PCP.

You’ll own the car at the end of the agreement.

There are no late payment charges or hidden fees during your agreement.

Finance is subject to status and affordability checks.

You won’t own the car until the final payment is made.

You may be offered a high APR if you have bad credit.

The car may be repossessed if you can’t make payments.

Join thousands of monthly customers like Adam

We just needed that chance to get a new car, and Moneybarn was able to offer us that chance. We’ve never had any problems and everything has been simple and easy. We would definitely use them again and hope to when this current agreement ends – Adam.

Moneybarn customer Adam

Join thousands of monthly customers like Adam

Moneybarn customer Adam

We just needed that chance to get a new car, and Moneybarn was able to offer us that chance. We’ve never had any problems and everything has been simple and easy. We would definitely use them again and hope to when this current agreement ends – Adam.

Why choose Moneybarn?

Great customer service

We support thousands of people up and down the country each month, even if they’ve been refused elsewhere. Our customers rate us as Excellent on Trustpilot.

Award-winning finance

We continue to win industry awards for our approach to responsible lending, including ‘Vehicle Finance Provider of the Year’ and ‘Sub-Prime Lender of the Year’ for 2023.

Leading specialist lender

As one of the UK's leading lenders for bad credit, we accept people let down by mainstream lenders, with over 30 years of experience helping people onto a better road ahead.

Why choose Moneybarn?

Great customer service

We support thousands of people up and down the country each month, even if they’ve been refused elsewhere. Our customers rate us as Excellent on Trustpilot.

Award-winning finance

We continue to win industry awards for our approach to responsible lending, including ‘Vehicle Finance Provider of the Year’ and ‘Sub-Prime Lender of the Year’ for 2023.

Leading specialist lender

As one of the UK’s leading lenders for bad credit, we accept people let down by mainstream lenders, with over 30 years of experience helping people onto a better road ahead.

What are the reasons for having bad credit?

Having a low credit score doesn’t mean you can’t get car finance, but it may mean you need to use a specialist lender. Here are some common reasons why you may have bad credit.

What are the reasons for having bad credit?

Having a low credit score doesn’t mean you can’t get car finance, but it may mean you need to use a specialist lender. Here are some common reasons why you may have bad credit.

One

You’ve experienced financial difficulties in the past. For example, you might have missed a payment or not been able to pay in full.

Two

You’ve never taken out a loan or credit agreement, or have always paid for things in cash. This means you might have little or no credit history.

Three

You’ve had credit issues in the past, and as a result, have a CCJ, IVA, DMP, DRO, declared bankruptcy, or have other marks on your credit file.

Four

You’ve made lots of applications for credit and have been refused. Some lenders use a hard credit check when you apply which affects your file.

Five

You might have shared credit with another person who had or has poor credit, and now your credit file is associated with them.

One

You’ve experienced financial difficulties in the past. For example, you might have missed a payment or not been able to pay in full.

Two

You’ve never taken out a loan or credit agreement, or have always paid for things in cash. This means you might have little or no credit history.

Three

You’ve had credit issues in the past, and as a result, have a CCJ, IVA, DMP, DRO, declared bankruptcy, or have other marks on your credit file.

Four

You’ve made lots of applications for credit and have been refused. Some lenders use a hard credit check when you apply which affects your file.

Five

You might have shared credit with another person who had or has poor credit, and now your credit file is associated with them.

How can I improve my bad credit score?

How can I improve my bad credit score?

Make full and on-time payments.

Late or missed payments will negatively impact your credit score. Setting up a direct debit can help ensure you don’t miss any bills.

Be mindful of your credit use.

Using too much of the credit available to you can also cause your score to drop. Experian recommends keeping your credit utilisation under 30%.

Check your credit file frequently.

Wrong information on your credit report can impact your score. Make sure all your information is correct so that your credit history is right.

Register for the electoral roll.

If your name isn’t on the electoral roll, you will generally find it harder to get credit. Registering for the electoral roll helps to verify your identity.

Make full and on-time payments.

Late or missed payments will negatively impact your credit score. Setting up a direct debit can help ensure you don’t miss any bills.

Be mindful of your credit use.

Using too much of the credit available to you can also cause your score to drop. Experian recommends keeping your credit utilisation under 30%.

Check your credit file frequently.

Wrong information on your credit report can impact your score. Make sure all your information is correct so that your credit history is right.

Register for the electoral roll.

If your name isn’t on the electoral roll, you will generally find it harder to get credit. Registering for the electoral roll helps to verify your identity.

Other ways we could help

Other ways we could help

We could help you make the switch to a hybrid or electric car. Check out our guide to getting electric car finance.

Do you have very bad credit and want to apply with a partner? Find out more about applying for joint car finance.

We understand that it might be hard to save a deposit for car finance. Read more about car finance with no deposit.

We could help you make the switch to a hybrid or electric car. Check out our guide to getting electric car finance.

Do you have very bad credit and want to apply with a partner? Find out more about applying for joint car finance.

We understand that it might be hard to save a deposit for car finance. Read more about car finance with no deposit.

Bad credit car finance FAQs

Your credit score is a three-digit number that is calculated using information from your credit file. It is important to know how to check your credit score because having a bad credit score can make it difficult to get finance.

There are 3 Credit Reference Agencies (CRAs) in the UK: Experian, Equifax, and TransUnion. Each CRA uses slightly different calculations to determine your credit score.

We’ve created a guide that explains what a good credit score is with each CRA. Checking your score with each of the CRAs can help you understand whether you have good, poor, or very bad credit.

It’s important to know what your credit score is with the 3 main Credit Reference Agencies (CRAs). Different lenders use different CRAs to decide whether they can offer you finance.

A bad credit score can have different meanings depending on which CRA you check. Each CRA has its own credit score ranges, which you can use to understand what factors affect your credit score.

The following scores are considered bad:

  • Experian: a very poor credit score is 0-560, and a poor credit score is 561-720
  • Equifax: a poor credit score is 0-438
  • TransUnion: a very poor credit score is 0-550, and a poor credit score is 551-565

There is no minimum credit score needed to get car finance. Even if you have a poor or very bad credit score, there are lenders who can help. Before offering you car finance, lenders consider several factors, such as your credit history and affordability.

We have over 30 years of experience helping people up and down the UK, even if they have poor credit. As a direct lender, we can help you onto a better road ahead. Get a quote in less than 5 minutes and see if we can help.

Yes, it is possible to get car finance with bad credit. However, it may be tricky to get approved by mainstream lenders. You may need to use a specialist lender who might offer you a higher Annual Percentage Rate (APR) compared to someone with good credit.

If you are looking for a no credit car loan, you might find that the car finance offers are similar to bad credit car loans. This is because lenders may see people with no credit history as a higher risk, as there is limited or no information on their ability to manage credit.

Yes, it is possible to get car finance with no credit history. However, it may be more difficult to get approved, and you may need to use a specialist lender.

Some people believe that a guarantor is required when applying for car finance with bad credit, but this is not always the case. Nowadays, guarantor finance is less common, as specialist lenders are able to help people with bad credit.

To learn more about this, check out our guide to learn what car finance with no guarantor means.

When you get a quote for car finance, it only affects your credit score if the lender uses a hard credit check at the point of application. We use a soft check which doesn’t leave a mark on your credit file.

If you decide you’d like to proceed and contracts are drawn up for you to sign, a hard check will be done which can affect your credit score. This may cause your credit score to drop, but if you pay back your finance on time and in full, car finance can build your credit score.

So, before you make any applications for car finance, make sure you check whether they use a soft or hard check at the point of application. Multiple hard checks in a short space of time can affect your credit score.

Financing a car with bad credit shouldn’t take any longer than someone with good credit. However, it may mean that mainstream lenders won’t accept your application and you have to use a specialist lender.

We are experts in providing car finance to people with poor credit scores. Every month, we help thousands of people to finance the car they need so they can get on a better road ahead.

Get a quote in less than 5 minutes and see if we can help. If you’re approved, our friendly experts will help guide you through our application process.

There are several types of car finance available for people with bad credit:

  • Conditional Sale (CS), which is what we offer at Moneybarn
  • Personal Contract Purchase (PCP)
  • Hire Purchase (HP)

Our Conditional Sale finance means you have full use of the car while making fixed monthly payments. Once you make your final payment, you become the legal owner of the car without having to pay a fee.

However, with PCP and HP, you need to pay a fee to own the car at the end of the agreement. In PCP, it is called the balloon payment, and in HP, it is the option to purchase fee.

For more information, see our guide that explains how car financing works and the pros and cons of each option.

If CS finance is right for you, we could help. We’re a direct lender, which means that even if other lenders have refused you, we can help. Get a quote today and we’ll give you an instant decision.

If you have a poor credit score or no credit history, you may have heard about sub-prime car finance. In the UK, this means finance offered to people with bad credit. Usually, people with a good or excellent credit score are referred to as ‘prime’, while people with poor, bad, or very bad credit scores are called ‘sub-prime’.

Read our guide on checking your credit score to learn how to view your report at each of the Credit Reference Agencies (CRAs).

Understanding if you have bad credit is important, because it means you may be offered higher APRs than someone with good credit. However, sub-prime or bad credit car finance can help you buy the car you need to get around. Get a quote today and see if we can help you onto a better road ahead.

To be eligible for car finance with us, you need to have a monthly income of at least £1,000 a month after tax. However, if you earn a salary or have a pension and don’t quite meet this requirement, there may be other sources of income we can consider. If you receive benefits you can find out which benefits we accept for car finance.

It’s important to note that every lender has their own criteria and may accept different types of income. Make sure you understand what they require before making any applications.

Also, it’s worth knowing that your salary doesn’t directly affect your credit score. There are other factors that can affect your credit score, so make sure you’re aware of these to avoid any bad habits.

It can be difficult to get approved for car finance with car finance with no deposit if you have bad credit. This is because lenders may see it as higher risk to lend to people with bad credit, especially if there is no deposit made.

We understand that saving up for a deposit can be tricky. If you already have a car and would like to part-exchange it, we may be able to accept it as a deposit.

If you have very bad credit and have been refused by other lenders, we may be able to offer you car finance. However, some of our agreements require a deposit of £400. If this is the case, our friendly experts will be happy to discuss your options and find a suitable agreement for you.

Get a quote today in less than 5 minutes and see if we can help you.

It’s important to know that no matter if you have good or poor credit, there is no such thing as no credit check car finance. Lenders will always do a credit check when you get a quote. However, there is a difference between a hard credit check and a soft credit check.

When you get a quote with us, we will only make a soft credit check, which doesn’t have any impact on your credit score. Some lenders may perform a hard credit check at the point of application. This usually causes your credit score to drop slightly and leaves a mark on your credit file.

It’s worth noting that we do use a hard credit check, but only after we have agreed the car you want to finance and contracts are drawn up for you to sign. Over time, making timely and full payments on your car finance can improve your credit score.

If you’re interested, get a quote in less than 5 minutes and see if we can help.

It’s possible to get a car on finance even if you have no credit history or a poor credit score. There are lenders who can help you regardless of your credit score. You can get a quote from us to see if we can help you.

If you are an expat or have recently arrived in the UK, you might not have a credit score or much of a credit history. For more information, please see our guide that explains how you can get car finance as an expat. To be eligible with us, you need to have a minimum of 3 years of UK address history.

Bad credit car finance FAQs

Your credit score is a three-digit number that is calculated using information from your credit file. It is important to know how to check your credit score because having a bad credit score can make it difficult to get finance.

There are 3 Credit Reference Agencies (CRAs) in the UK: Experian, Equifax, and TransUnion. Each CRA uses slightly different calculations to determine your credit score.

We’ve created a guide that explains what a good credit score is with each CRA. Checking your score with each of the CRAs can help you understand whether you have good, poor, or very bad credit.

It’s important to know what your credit score is with the 3 main Credit Reference Agencies (CRAs). Different lenders use different CRAs to decide whether they can offer you finance.

A bad credit score can have different meanings depending on which CRA you check. Each CRA has its own credit score ranges, which you can use to understand what factors affect your credit score.

The following scores are considered bad:

  • Experian: a very poor credit score is 0-560, and a poor credit score is 561-720
  • Equifax: a poor credit score is 0-438
  • TransUnion: a very poor credit score is 0-550, and a poor credit score is 551-565

There is no minimum credit score needed to get car finance. Even if you have a poor or very bad credit score, there are lenders who can help. Before offering you car finance, lenders consider several factors, such as your credit history and affordability.

We have over 30 years of experience helping people up and down the UK, even if they have poor credit. As a direct lender, we can help you onto a better road ahead. Get a quote in less than 5 minutes and see if we can help.

Yes, it is possible to get car finance with bad credit. However, it may be tricky to get approved by mainstream lenders. You may need to use a specialist lender who might offer you a higher Annual Percentage Rate (APR) compared to someone with good credit.

If you are looking for a no credit car loan, you might find that the car finance offers are similar to bad credit car loans. This is because lenders may see people with no credit history as a higher risk, as there is limited or no information on their ability to manage credit.

Yes, it is possible to get car finance with no credit history. However, it may be more difficult to get approved, and you may need to use a specialist lender.

Some people believe that a guarantor is required when applying for car finance with bad credit, but this is not always the case. Nowadays, guarantor finance is less common, as specialist lenders are able to help people with bad credit.

To learn more about this, check out our guide to learn what car finance with no guarantor means.

When you get a quote for car finance, it only affects your credit score if the lender uses a hard credit check at the point of application. We use a soft check which doesn’t leave a mark on your credit file.

If you decide you’d like to proceed and contracts are drawn up for you to sign, a hard check will be done which can affect your credit score. This may cause your credit score to drop, but if you pay back your finance on time and in full, car finance can build your credit score.

So, before you make any applications for car finance, make sure you check whether they use a soft or hard check at the point of application. Multiple hard checks in a short space of time can affect your credit score.

Financing a car with bad credit shouldn’t take any longer than someone with good credit. However, it may mean that mainstream lenders won’t accept your application and you have to use a specialist lender.

We are experts in providing car finance to people with poor credit scores. Every month, we help thousands of people to finance the car they need so they can get on a better road ahead.

Get a quote in less than 5 minutes and see if we can help. If you’re approved, our friendly experts will help guide you through our application process.

There are several types of car finance available for people with bad credit:

  • Conditional Sale (CS), which is what we offer at Moneybarn
  • Personal Contract Purchase (PCP)
  • Hire Purchase (HP)

Our Conditional Sale finance means you have full use of the car while making fixed monthly payments. Once you make your final payment, you become the legal owner of the car without having to pay a fee.

However, with PCP and HP, you need to pay a fee to own the car at the end of the agreement. In PCP, it is called the balloon payment, and in HP, it is the option to purchase fee.

For more information, see our guide that explains how car financing works and the pros and cons of each option.

If CS finance is right for you, we could help. We’re a direct lender, which means that even if other lenders have refused you, we can help. Get a quote today and we’ll give you an instant decision.

If you have a poor credit score or no credit history, you may have heard about sub-prime car finance. In the UK, this means finance offered to people with bad credit. Usually, people with a good or excellent credit score are referred to as ‘prime’, while people with poor, bad, or very bad credit scores are called ‘sub-prime’.

Read our guide on checking your credit score to learn how to view your report at each of the Credit Reference Agencies (CRAs).

Understanding if you have bad credit is important, because it means you may be offered higher APRs than someone with good credit. However, sub-prime or bad credit car finance can help you buy the car you need to get around. Get a quote today and see if we can help you onto a better road ahead.

To be eligible for car finance with us, you need to have a monthly income of at least £1,000 a month after tax. However, if you earn a salary or have a pension and don’t quite meet this requirement, there may be other sources of income we can consider. If you receive benefits you can find out which benefits we accept for car finance.

It’s important to note that every lender has their own criteria and may accept different types of income. Make sure you understand what they require before making any applications.

Also, it’s worth knowing that your salary doesn’t directly affect your credit score. There are other factors that can affect your credit score, so make sure you’re aware of these to avoid any bad habits.

It can be difficult to get approved for car finance with car finance with no deposit if you have bad credit. This is because lenders may see it as higher risk to lend to people with bad credit, especially if there is no deposit made.

We understand that saving up for a deposit can be tricky. If you already have a car and would like to part-exchange it, we may be able to accept it as a deposit.

If you have very bad credit and have been refused by other lenders, we may be able to offer you car finance. However, some of our agreements require a deposit of £400. If this is the case, our friendly experts will be happy to discuss your options and find a suitable agreement for you.

Get a quote today in less than 5 minutes and see if we can help you.

It’s important to know that no matter if you have good or poor credit, there is no such thing as no credit check car finance. Lenders will always do a credit check when you get a quote. However, there is a difference between a hard credit check and a soft credit check.

When you get a quote with us, we will only make a soft credit check, which doesn’t have any impact on your credit score. Some lenders may perform a hard credit check at the point of application. This usually causes your credit score to drop slightly and leaves a mark on your credit file.

It’s worth noting that we do use a hard credit check, but only after we have agreed the car you want to finance and contracts are drawn up for you to sign. Over time, making timely and full payments on your car finance can improve your credit score.

If you’re interested, get a quote in less than 5 minutes and see if we can help.

It’s possible to get a car on finance even if you have no credit history or a poor credit score. There are lenders who can help you regardless of your credit score. You can get a quote from us to see if we can help you.

If you are an expat or have recently arrived in the UK, you might not have a credit score or much of a credit history. For more information, please see our guide that explains how you can get car finance as an expat. To be eligible with us, you need to have a minimum of 3 years of UK address history.

Car finance with a CCJ

Having a County Court Judgment (CCJ) can affect your ability to get car finance, but it doesn’t make it impossible to get the car you need. Find out more in our guide.

IVA car finance

If you’re in or have had an Individual Voluntary Agreement (IVA), you might find it tricky to get finance. Click the button to see how we can help you.

Myths about bad credit

There’s lots of misconceptions about what bad credit is and how it affects your ability to get car finance. Learn more by clicking the button below.