Can you still get car finance if you have bad credit?

The good news is that while it may be a bit tricker to get car finance if you have bad credit, it’s still possible. Find out more about how your credit rating can affect your ability to lease a car in our handy guide.

How important is my credit history when leasing a car?

When it comes to car finance, the truth is that lenders will definitely be looking at your credit history to decide whether you’re someone they want to enter a deal with. This means that if you have bad credit, or you have an incomplete credit history, you’re likely to find that some aren’t willing to lend to you.

That said, a bad or incomplete credit history doesn’t mean that you have no chance in securing car finance. It may just be a trickier process, or you may be faced with less preferable terms.

How do I know if I’ll be accepted for car finance?

Typically, you won’t know for certain whether or not you’ll be accepted for car finance until you apply. Each lender uses their own set of criteria to work out whether they want to enter a contract with you and that means their results can be hard to predict. However, it is possible to use an online eligibility tool to see if you’re being flagged as having bad credit.

Eligibility tools can give you an idea of how car providers or other lenders might see you. They carry out “soft checks” which aren’t recorded on your credit score. It’s a very good idea to use a tool like this before making an application, because the kind of “hard checks” that a potential lender carries out are recorded and if you make a lot of those, other lenders may look at them and assume you’re not using credit responsibly.

Are there ways I can improve my credit?

There are a few things you can do to potentially up your credit score and make it more likely that you’ll be accepted for car finance. These include things like working to settle any outstanding debts, staying at the same address for three years or more and checking that the information credit companies hold about you is accurate.

If you successfully apply for car finance and are able to meet all of your scheduled payments, you can actually improve your credit rating.

How can I get car finance with bad credit?

If your credit is bad or your history is patchy, there are things you can do to improve your chances of being approved. For example, asking for a reasonable deal which includes monthly repayments that are easily manageable when compared to your income. You could also save up and offer a larger deposit. There’s also the option or asking someone to be your guarantor, this is a person willing to step in should you default on your payments.

Interested in finding out whether car finance might be possible for you? At the Eastern Western Motor Group, our team is happy to discuss your various options to find the best deal.