What Credit Score Is Needed for Car Finance in the UK?

The straight answer - and what lenders truly check

There is no universal minimum credit score for car finance in the UK. Different lenders use different Credit Reference Agencies, and each agency has its own scale. A figure that looks healthy with one provider can appear average with another. What matters more is the overall story your profile tells - credit history, income, and affordability. Lenders focus on whether the repayments comfortably fit your budget.

Experian remains the most widely used agency for UK car finance. On its scale, scores of 881-960 are considered good and 961-999 excellent. Strong scores typically unlock better interest rates, especially if you cross the 960 mark. But you can still be approved with a fair or even poor score if you can demonstrate affordability, stability, and are willing to pay a larger deposit.

Equifax and TransUnion use different ranges. Equifax typically runs 0-1000, while TransUnion runs 0-710. A 550 with Equifax can be seen as good, while the same number would sit below average with TransUnion. This variation is why checking all three reports before you apply is sensible. It reduces surprises and helps you choose the right lender or broker.

Understanding APR is not just about percentages - it is about what you will pay in real money.

Affordability is decisive. Even an excellent score will not help if the proposed monthly payment is out of reach. Conversely, modest income and a less-than-perfect score can work if your deposit is strong and the monthly outlay is low. With living costs still elevated, planning your budget and preparing documents before you apply could be worth hundreds of pounds over the term.

Who will find this useful

If you are in the UK and weighing up hire purchase or PCP for your next car, this guide is for you. It is especially helpful if your score varies across Experian, Equifax, and TransUnion, or you are new to credit and want to avoid a misstep. It also suits those rebuilding after missed payments, new residents establishing a UK file, and anyone comparing quotes to minimise total interest. Whether you are upgrading to a family SUV or financing your first car, the principles here help you approach lenders with confidence.

Your finance routes at a glance

1. Hire Purchase (HP) - fixed monthly payments, you own the car after the final instalment.

2. Personal Contract Purchase (PCP) - lower monthly payments with an optional final balloon to own, swap, or return.

3. Personal loan from a bank or building society - unsecured credit paid directly to you.

4. Specialist bad credit lenders - tailored options at higher APRs, often with bigger deposits.

5. Guarantor or joint application - a second party strengthens affordability and risk.

6. Leasing (PCH) - long-term rental with no option to own, mileage limits apply.

7. Broker-matched panel offers - one application assessed against multiple lenders.

Price, outcomes, and trade-offs

Small changes to deposit or term can shift the APR you are offered.

Can you qualify right now

Most lenders want at least three years of UK address history to verify identity and assess risk. Frequent moves can raise questions, so gather proof of address such as council tax bills or bank statements. Income usually needs to be £1,000-£1,500 per month or more, validated by payslips or bank statements, and a steady job history of at least 12 months helps. You must be 18 or older, a UK resident with a UK bank account, and hold a full driving licence. Some providers accept provisional licences, but the choice can be limited and pricing less favourable.

Your credit score matters, yet affordability takes priority. An excellent score will not overcome a payment that overshoots your budget, while a fair score can work if the deposit is strong and the monthly figure is well within means. Experian scores of 881-960 are generally seen as good, with 960+ often unlocking the best rates. Equifax and TransUnion ranges differ, so check all three to understand your standing.

Kandoo can match your profile to a wide panel of UK lenders, including specialists for thin files or past blips. Soft searches can indicate eligibility without harming your score. That means a clearer picture before you commit to a full application.

From quote to keys - the simple path

1. Check Experian, Equifax, and TransUnion reports.

2. Set a realistic budget and target deposit.

3. Use a soft-check eligibility tool via Kandoo.

4. Compare HP vs PCP quotes side by side.

5. Upload payslips, bank statements, and ID.

6. Receive lender match and conditional offer.

7. Finalise documents and arrange collection or delivery.

Advantages and drawbacks at a glance

Read this before you press apply

Every regulated UK lender will perform a credit check. Offers of car finance with no checks are not legitimate. Use soft-search tools to understand where you stand without adding unnecessary footprints. If your score is uneven across agencies, address any errors and bring accounts up to date for at least three months. Set your budget with headroom for insurance, VED, maintenance, and fuel. If rates look steep, consider increasing your deposit or shortening the term slightly to bring down total interest. Keep evidence of address and income to hand to avoid delays. Taking these steps ahead of time makes approvals smoother and helps secure a rate that suits your circumstances.

Alternative routes if the numbers do not work

1. Save for a larger deposit to cut the APR.

2. Consider a cheaper car to reduce the monthly payment.

3. Add a guarantor or apply jointly to strengthen affordability.

4. Improve your score for a few months, then re-apply.

5. Use a personal loan if bank terms beat dealer finance.

6. Opt for leasing if ownership is not essential.

Common questions, clear answers

Q: Is there a minimum credit score for UK car finance? A: No. Lenders use different CRAs with unique ranges. Approval depends on your overall profile and affordability.

Q: What is a good Experian score for competitive rates? A: Scores above 880 are commonly viewed as good. At 960 or higher, you are more likely to see top rates.

Q: My score is fair. Can I still get approved? A: Yes. Specialist lenders consider fair and poor credit, often with higher APRs or larger deposits. Strong affordability helps.

Q: Will checking my eligibility hurt my credit file? A: Soft searches do not affect your score. A full application will leave a hard search visible to other lenders.

Q: How much income do I need? A: Many lenders look for £1,000-£1,500 per month or more, verified with payslips or bank statements.

Q: Do I need three years of UK address history? A: It is typical. Shorter histories or frequent moves can limit choices but are not always a barrier.

Q: What improves my chances for 2026 deals? A: Pay on time, reduce balances, fix report errors, and aim for Experian 880+. Start tidying your file months ahead.

How Kandoo helps you move faster

Kandoo is a UK-based retail finance broker that uses soft-search tools and a broad lender panel to match you to suitable car finance without risking your score. We compare HP, PCP, and specialist options, explain the trade-offs in plain English, and help you prepare documents so approval is smoother. Apply online in minutes and let us do the legwork.

Important information

This guide is for information only and does not constitute financial advice. Eligibility and rates depend on your circumstances and the lender’s criteria. All credit is subject to status and affordability checks. Terms, conditions, and fees may apply. Always read your agreement carefully before you sign.