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Car Finance with Bad Credit – Poor Payment Record is No More an Obstacle

Do you think you cannot buy a car on finance if you have poor credit? Good news is you are wrong because bad credit car finance is there to solve this issue. It is a flexible side of the car finance options available to the people with poor payment history. Anyone with bad credit but good repaying capacity can borrow money while exploring varied methods. QuickLoansLender offers car finance to low credit score people on rational and affordable terms and conditions.

What Is Bad Credit Car Finance?

Bad credit finance is a specialised finance option for car buyers who have poor credit situation. It is precisely available for those with a less-than-perfect credit rating. Normally, it is difficult for such borrowers to get funds due to weaker financial conditions, but bad credit car finance in the UK solves this problem.

  • Any fund seeker with the poor score but stable income can apply
  • The interest rate can be low but not much due to weaker finances
  • Credit check occurs but on demand of the applicant soft check is available

What does bad credit really mean?

Bad credit basically results from delayed payments of debts and bills that cause a drop in the credit rating. It makes the attainment of financial services difficult due to an obvious reason.

  • When someone delays making the payments, the concerned creditor sends the report to the credit reference agency.
  • Credit reference agencies make the credit report, and when they get to know about late payments, they drop the score.
  • The low credit score basically shows the poor creditworthiness of a person which means he cannot payback efficiently.
  • A bad credit score is a one stage higher to very bad credit score and one stage lower to fair credit score situation.
  • Bad credit car finance specialist
  • 5-star rated financial services
  • Higher approval rate of 98%

Types of car finance if you have a bad credit score

The types of car finance can be generalized but they are all available for poor credit people. Normally the bad credit car finance by the direct lender are available easily, unlike the conventional lending options. All the finance options are customized and consider individual circumstances

Car Finance Normally Have 5 Popular Options

Hire Purchase – It a finance option of 3 to 5 years of tenure available to bad credit people. The applicant needs to deposit 10% of the total car value, but for poor credit borrowers, the deposit is 12% to 15%.

This option includes an upfront fee, and the payment of the borrowed money goes in monthly instalments. The rate of interest is always according to the latest financial conditions of the applicant.

Personal Contract Purchase – Also known as PCP in abbreviation, this finance option is also used for borrowing funds. But it works on the factor of depreciation. The reason is that in PCP, the borrower can return the car at the end of the agreement.

The borrower pays a deposit, and the instalments paid monthly are basically the difference between the car value at the time of purchase and the value when the contract ends.

Leasing – The bad credit borrowers normally use the option of leasing for commercial purposes. In this option, the borrower cannot keep the car once the leasing agreement ends. The tenure is 2 to 5 years, and the borrower pays an advance payment equivalent to the leasing amount of 3 months.

Some leasing deals also include maintenance package that includes car tax/service tax etc. However, when it comes to tax the electric cars up to £40,000 will be free from any tax due to the ‘green vehicle-discount’ offer. If the borrower wants to take the car to another country or state in the same country, he needs to inform for a written acceptance. This helps the borrower in the smooth drive.

Personal loans – If you are looking for the personal bad credit car finance loans, then you can rely on this option. We can figure out the best deal for you with flexible repayments. As the term denotes, it is actually a personal loan that one can use for the car purchase. The ultimate nature of this finance option is of personal loans only.

The borrower can apply for any amount that he can qualify for. There is no deposit required, like other options of car finance. This one feature makes personal loans for car a desirable choice. However, the applicant needs to have a strong repaying capacity because the interest rate can be a bit high and the instalments big.

Car Loans – This is precisely the same that you think of. Yes, these are the general and well-known car loans designed to help good, fair, and bad credit car buyers. They have the conditions of the 10% deposit amount the interest rate is according to the market conditions, but they are affordable due to customization.

We can calculate the cost (Monthly + Annual) on our advanced bad credit car finance calculator. We want you to find things predictable because then only, it is possible to take a confident and clear decision on the big purchase. We always suggest the borrowers apply an amount they can afford.

All the above finance options are available all across the UK through us. Whether you are looking for the bad credit car finance in Leeds, Manchester, Galsgow, Scotland, Liverpool or anywhere else, we are right here with all options ready.

Features and benefits of Bad Credit Car Finance

Bad credit car finance is already a beneficial term in itself because it is a great support to have funds despite a poor credit score. The deal sounds even better because there are many other features attached to this finance option that proves beneficial for you.

Flexible bad credit car finance by the direct lender – The lending is much more plausible now with the new age lending practice. Direct lending does not work on the credit score status like the traditional methods. It considers your latest repaying capacity. Flexible repayment plans, no upfront fee, instant decision etc. many things help.

Funds with no guarantor – The bad credit car finance with no guarantor is a huge relief for any car buyers. Especially, during this time when pandemic has left the whole economy with many scars, people cannot afford to back each other as a guarantor. With no such obligation on car finance, it is much easier to make the big purchase.

Very poor credit car finance – Very few people know that finance options are also available for the applicants with the worst credit situation. The very bad credit car finance is the reality of today however with several terms and conditions. We want the fund seeker to prove that he is already doing good in paying off the debts of other creditors. In the case of strong repaying capacity, we can approve funds.

People on benefits can avail – The borrowers living on benefits can also apply if their current financial circumstances are satisfactory. QuickLoansLender considers money from benefits as an income irrespective of the type of benefit. The only condition for the bad credit car finance on benefits is the strong creditworthiness.

Payment holiday up to 3 months – Yes, you can have a payment holiday of up to 3 months but with due information and confirmation. During the tenure, if you ever feel that it is difficult to pay the instalments and need a break, we are there with our payment holiday features. A poor credit score cannot stop from availing this feature.

Cooling off period 14 days – We believe that freedom to decide to make a stronger bond between the lender and the borrower. It is the reason that with every car finance option, we give a cooling off period of 14 days. It means, if you want to change your mind and want to switch to a new deal leaving an existing agreement, you can do that.

Bad Credit Car Finance Calculator

The best bad credit car finance deal can be spotted only when you know the statistics of cost. In the end, you need to pay off every pound you have borrowed, and that has a considerable impact on personal finances. It is necessary to walk in the right direction and reach the correct decision. For that, a car finance calculator is an evident tool.

How does Car Finance Calculator Help?

  • Annual Percentage Rate – Currently the maximum APR is 21.9%.
  • Spread the annual cost in monthly costs and know the monthly instalments.
  • Check the total cost of the finance according to the varied deposit amount.
  • Know better about the tenure on a particular amount and interest rate.

How to get car finance if you have bad credit?

To get car finance with less-than-perfect credit record and financial condition, you need to have certain conditions. The application process is fast but detailed, and your personal finances get under scrutiny on many aspects.

What are the effects on the approval chances if you have a poor credit score?

Several conditions can leave a positive and negative impact on your approval chances in case of poor credit score. It is better to know about them beforehand and play safely without making any big mistake while applying for the funds.

How Can We Help?

QucikLoansLender makes every effort to make the car finance easy for you. With all the rational ways of working behind our financing procedures, we make sure you get the best borrowing experience.


QuickLoansLender has everything to offer one can yearn for in car finance in the UK. We make it even better with festive and other seasonal offers on car finance deals. Personal attention by our expert team makes sure that you get the best borrowing experience.

faqs

Can I get car on finance if have a poor credit history?

Yes, you can get car finance with poor credit history. The lender does not consider your past credit mistakes rather approve loan applications through recent credit performance and income capacity to repay the loan.

Can I get car on finance with bad credit from direct lender?

Yes, the direct lenders are ready to offer car finance with bad credit. They would like to do soft credit check to ensure loans on affordability and on the borrowers’ income capacity.

Can I get financed for a car with a 500 credit score?

You can get finance for a car with such credit score but you must have a strong monthly income. The lender can also consider your current performance or guarantor’s presence to get the desired funds.

How Can I get a car on finance with bad credit on benefits?

You can show your income or the guarantor’s presence to get the finance for car despite bad credit and living on benefits. However, the interest rates may be on the higher side.

Can I get car on finance with bad credit and no guarantor?

Yes, you can get car finance with bad credit and no guarantor but on the higher interest rates. In addition, you have to show your income proof of the last three months to strong your loan application more.

Do You Perform a Credit Check When I Apply?

Many people want car finance with no credit check especially if they have bad credit scores. But every lender has to do mandatory credit check. You need to find out the right lender who can do soft credit check and allow a smooth loan approval.