Can I get motor finance with no deposit and bad credit?

Can I get motor finance with no deposit and bad credit?

by Matthew
15 April 2021

The term ‘credit rating’ can be a pain when purchasing a new car, and it can make you worry that you might not be eligible to buy. But if you were to ask us “Can I get motor finance with no deposit and bad credit?” We’d say of course you can!  

While you might have a few less options, there are still plenty of ways in which you can secure a finance deal with us. But let us start from the beginning:

How does credit rating work?

Your credit rating is pretty much your financial story. It looks at factors such as:

  • Your past spending history
  • Whether you have paid back any loans in time
  • If you have been declared bankrupt
  • How much credit you have used

There is a file on every single one of us which contains all of this information.  Your credit score is based on a points system. This ranges from 0-999, with a ‘good’ score ranging anywhere between 881 and 960 and a ‘fair’ score anywhere between 721 and 880. Anything lower than this can cause lenders to have some issues with your finance application. 

What does this mean for my motor on finance application?  

A lower credit rating will usually mean that you have to pay a higher interest rate on your finance. This can be negotiated by us to find you the best deal possible for your situation. However, there will be limits on how much your finance deal can be brought down. While you can still get motor finance with no deposit on bad credit; the higher the rating the lower the interest rate, so it’s best to look after this as much as you can.       

What causes a bad credit rating? 

There are many factors that can play a part in your credit rating. Everybody is different, and your past circumstances may have had a negative impact; but the most important thing is that you are currently wanting to improve these circumstances. Factors that can cause a bad credit rating include: 

  • A history of missed payments can make you seem unreliable to lenders
  • Frequent changes of address may make you seem less stable
  • If you’re younger, you might not have enough credit history to judge off of
  • If you’ve filed for bankruptcy in the past, it might appear that you can’t afford to pay the loan back

These factors can all affect your credit rating, and it is recommended that you apply for a credit report to give you an idea of where you might be going wrong. 

Sites such as Experian and Money Supermarket offer great credit score checks. 

We can help you find the best credit report for you here

How do I improve my bad credit ratings for a better motor finance deal?

There are many ways in which you can improve your credit. Depending on your credit score, it will vary in how long it will take your credit to improve. In order to be in the best position possible, it’s recommended that you:

  • Pay off any outstanding debts 
  • Make sure that any information you have entered in forms is correct. Any issues with your application may count against you
  • Register to vote. Having your address on record will make it easier for lenders to check your credit – this makes them happy!
  • Secure a guarantor (someone who can pay on behalf of you if you are unable to) if possible

It’s suggested that you do all that you can to improve your credit rating in order for us to find the best deal possible for you. 

Get help with your bad credit

If you are having issues with your credit score, you can contact National Debt Advice or the Debt Support Service who can assist you with clearing debts and other financial issues. 

Bad Credit Rating Finance

There are in fact some specialist lenders out there who offer fine tuned services for people with a poor credit rating. However the interest rates will vary, so it’s best to allow us to use our comparison software to find you the best deal possible. 

So how do you get motor finance with no deposit and bad credit?

Even if your credit score is low at the moment and you need wheels fast, then there are still plenty of deals available at a 0% deposit, and we can help find the best one for you. One of our friendly team members will be more than happy to do all the leg work for you with absolutely zero judgement. 

Here at Car Loans UK, we believe that even if you’re in a difficult financial situation, it shouldn’t stop you from being able to find your feet again. Going with us is as easy as 1, 2, 3.

1. Use our quick and easy form to get an instant decision 24/7 that won’t impact your credit rating

2. Choose a car from nationwide dealers and we’ll handle the payment for you

3. Drive off into the sunset in your new car

Before you commit, just pop in your details into our car finance calculator and find out your monthly repayments on the car of your choice.

Ready to make your search for a car on finance much more simple? Get in touch for a quote today. 


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