How to Get Car Finance with a Bad Credit Score

Why This Guide Matters

Let’s face it: no one dreams of their credit score. It’s not exactly the stuff of Sunday afternoon fantasies, is it? But when you want a new car and your credit history looks like a game of financial snakes and ladders, suddenly that little number matters more than your nan’s roast potatoes. Bad credit doesn’t mean you’re doomed to a life of unreliable rides and buses that turn up whenever they feel like it. This guide exists to prove exactly that. We’ll show you how to get car finance—even if your credit score is less ‘gold star’ and more ‘must try harder’—with a sprinkling of wit, a splash of reality, and the sort of advice you’d expect from a mate who’s been there, done that, and still has the paperwork.

The Basics Explained

First, let’s tackle the basics. Car finance is exactly what it sounds like: borrowing money to buy a car, then paying it back over time. Simple, right? But then there’s the catch—lenders want to know if you’re likely to pay them back, and that’s where your credit score crashes the party.

A bad credit score usually means you’ve missed a few payments, perhaps made some less-than-stellar financial decisions, or maybe just never had credit at all. It’s not a crime, but it does make lenders twitchy. They see risk, and risk, as we all know, makes finance types break out in hives.

There are a few main types of car finance:

• Personal Contract Purchase (PCP): Pay monthly, then choose to buy the car or hand it back at the end.
• Hire Purchase (HP): Pay monthly, own the car at the end.
• Personal Loan: Borrow cash, buy the car outright.

Bad credit doesn’t lock you out, but it does change the game. You’ll need to play smarter and know what’s actually possible.

How It Affects You

Here’s the harsh truth: with bad credit, you’re not the lender’s favourite. You’re not even on their Christmas card list. But that doesn’t mean you’re out of the running. It just means you’re going to have to work a bit harder, pay a bit more, and know exactly what to watch out for.

What does it mean for you?

• Higher Interest Rates: The worse your credit, the more you’ll pay in interest. Lenders want to cover their backsides if you go walkabout with their money.
• Fewer Choices: Some fancy finance deals just won’t be open to you. But there are specialist lenders who actually like helping people rebuild their credit.
• Bigger Deposits: Sometimes, you’ll be asked to stump up more cash upfront. It’s a way to show you’re serious.
• More Paperwork: Get ready for a bit more admin. Lenders might want proof of income, ID, and proof that you actually exist and aren’t a cardboard cut-out.

But here’s the kicker: every payment you make on time can actually improve your credit score. So, yes, getting car finance with bad credit is harder—but it’s also a golden opportunity to start fixing things.

Our Approach

At Kandoo, we don’t believe in telling people off for their past. Everyone’s made a financial cock-up at some point. Our job is to help you get back on the road, not wag a finger from the sidelines.

Here’s how we do it:

1. Wide Network of Lenders: We work with a motley crew of lenders, including those who specialise in bad credit. So, if you’ve been rejected elsewhere, don’t give up hope just yet. 2. No-Nonsense Advice: We cut through the faff and tell you what’s actually possible. No promises we can’t keep, no fairy tales about 0% APR if your last three addresses were all on Monopoly boards. 3. Soft Credit Searches: Our initial checks won’t hammer your credit score further. You can see what’s realistic before taking the plunge. 4. Personal Support: You’ll get a real human being who can talk you through the options, not just a robot quoting statistics at you. 5. Tailored Solutions: We look at your whole situation, not just a number on a screen. Got a steady income and a deposit? That’s worth something.

With Kandoo, you’re not just a number. We’re here to help you swap bus timetables for car keys, even if your credit history is more horror story than fairy tale.

Before You Decide

Before you go signing anything—or even picking out your dream wheels—there are a few things you really need to think about. Because let’s be honest, nobody wants to swap bad credit for worse debt.
• Budget Brutally: Work out what you can really afford each month. Not what the car ad says, but what your bank balance can handle without weeping.
• Deposit Dilemmas: Can you scrape together a bigger deposit? It’ll make lenders happier and might even get you a better deal.
• Read the Small Print: Sounds dull, but this is where the sneaky bits hide. Balloon payments, fees, penalties for sneezing too loudly—know what you’re signing up for.
• Compare, Compare, Compare: Don’t just take the first offer. Shop around, use brokers (like us, hint hint), and make sure you’re not overpaying.
• Think Long-Term: Will you still want (or be able to afford) this car in three years? Or will you be stuck with a monthly payment and a car you can’t stand?

A little bit of prep now saves a lot of pain later. Trust us, we’ve seen it all.

What’s Real, What’s Hype

Let’s clear up a few myths:
• “Bad credit means no car finance”: Rubbish. You’ve got options; you just need to know where to look.
• “It’ll ruin your credit forever”: Only if you don’t keep up payments. Nail those, and you can actually improve your score.
• “Guaranteed approval!” If you see this, run for the hills. No one can guarantee approval without checking your finances first—unless it’s your mum lending you a tenner.

The truth? Bad credit isn’t the end—it’s just a different route.

Pros & Cons

Here’s what you’re really dealing with:

Pros	Cons
Get a car, even with bad credit	Higher interest rates
Rebuild your credit score	Limited lender choice
Flexible options available	Bigger deposits sometimes
Soft search options (with Kandoo)	More paperwork

Some days it’ll feel like you’re paying for gold-plated tyres. But the upside is real: you get the wheels, and a shot at fixing your credit.

Other Options to Consider

Car finance isn’t a one-way street. Here are some alternatives if you’re not quite ready to sign on the dotted line:
• Personal Loan: If your credit’s not terrible, a personal loan might still be cheaper than specialist car finance.
• Guarantor Loans: Get a mate or family member with good credit to back you. If you don’t pay, they’re on the hook—so don’t fall out over it.
• Lease Deals: You don’t own the car, but you get to drive something new for a fixed period. You’ll need to keep it in good nick, though.
• Save Up: Old-fashioned, but bulletproof. Delay the car, improve your deposit, and maybe even fix your credit in the meantime.

Whatever route you take, remember: the right deal is the one that fits your life, not just your wishlist.

FAQs

1. Can I really get car finance with bad credit? Yes. You’ll have fewer options and pay more in interest, but with the right broker (like Kandoo), it’s absolutely possible.

2. Will applying for car finance hurt my credit score? Not with a soft search. Hard searches might leave a mark, but initial checks with Kandoo won’t.

3. How much deposit will I need? It varies. Some lenders want 10%, others might ask for more if your credit is especially rocky.

4. Can I improve my credit score with car finance? Definitely. Make every payment on time and your credit score should start to creep northwards.

5. What if I’m refused? Don’t panic. Different lenders have different criteria. A broker like Kandoo can help find another option.

6. Is it better to buy new or used with bad credit? Used cars usually mean smaller loans and lower payments, which can help if your credit isn’t sparkling.

7. Can I settle my finance early? Usually, yes—but check for early repayment fees in the small print.

8. What documents do I need? Proof of ID, address, income, and sometimes a utility bill to prove you’re not living in a shed.

Next Steps / Call to Action

Ready to swap the schedule of the 07:38 bus for your own set of keys? At Kandoo, we’re here to make bad credit car finance less of a headache and more of a fresh start. Click through, chat to our team, and let’s get you motoring—even if your credit score is currently hiding behind the sofa. Because everyone deserves a second chance (and a decent car).