Compare Bad Credit Car Loans

  • There are various loan and finance options available for UK car buyers with bad credit
  • Find out more about how car finance works here
  • None of the providers we compare charge broker fees
I am looking for Bad Credit...
    • Zuto (Bad Credit) logo

      Zuto
      (Bad Credit)

      Broker
      • Representative APR
        26.9% APR
      • Available Amounts
        £500 to £100,000
      • Min / Max Terms
        2 to 5 years

      Borrower Criteria

      • Must be aged 18 or over
      • Must be a UK resident
      • Bankruptcies not accepted
      • Must have a Bad credit rating

      Vehicle Restictions

      • No restrictions on vehicle
    • CarFinance 247 (Bad Credit) logo

      CarFinance 247
      (Bad Credit)

      Broker
      • Representative APR
        27% APR
      • Available Amounts
        £2,000 to £75,000
      • Min / Max Terms
        1 to 5 years

      Borrower Criteria

      • Must be aged 18 or over
      • Must have 3 years residential history
      • Must have 12 months employment history

      Vehicle Restictions

      • Dependent on product and lender there could be vehicle criteria around mileage and age (this does not apply to personal loans)
    • Midland Credit (Bad Credit) logo

      Midland Credit
      (Bad Credit)

      Broker
      • Representative APR
        36.99% APR
      • Available Amounts
        £3,000 to £50,000
      • Min / Max Terms
        2 to 5 years

      Borrower Criteria

      • Must be aged 21 or over
      • Must have full UK or EU driving license
      • Must be employed or self-employed

      Vehicle Restictions

      • Dependent on the lender who approves the application there could be vehicle criteria around mileage and age (this does not apply to personal loans)
    • Citrus Loans (Bad Credit) logo

      Citrus Loans
      (Bad Credit)

      Broker
      • Representative APR
        37% APR
      • Available Amounts
        £1,500 to £25,000
      • Min / Max Terms
        1 to 5 years

      Borrower Criteria

      • Must be 18 to 65 years old
      • Must be a UK resident
      • Must be employed
      • Must earn at least £800 per month

      Vehicle Restictions

      • No restrictions on vehicle
    • Aspire Money (Bad Credit) logo

      Aspire Money
      (Bad Credit)

      Broker
      • Representative APR
        49.9% APR
      • Available Amounts
        £500 to £10,999
      • Min / Max Terms
        1 to 5 years

      Borrower Criteria

      • Must be 18 to 65 years old
      • Must be a UK resident
      • Must be employed
      • Must earn at least £800 per month

      Vehicle Restictions

      • No restrictions on vehicle
    • What Credit (Bad Credit) logo

      What Credit
      (Bad Credit)

      Broker
      • Representative APR
        49.9% APR
      • Available Amounts
        £1,000 to £15,000
      • Min / Max Terms
        1 to 5 years

      Borrower Criteria

      • Must be aged 25 to 63
      • Must have a minimum monthly income of £1,000
      • Must have been employed in current job for 6 months
      • Must have full UK licence
      • Must have lived at current address for 12 months
      • Must not be self-employed
      • Must not be a taxi driver
      • Must not be a benefit recipient or carer
      • Must have a Bad credit rating

      Vehicle Restictions

      • 100,000 miles maximum mileage
      • Vehicle must be under 8 years old

These providers offer a number of products for the purpose of purchasing a car including car finance secured on the vehicle. This means your car may be at risk if you do not keep up repayments.

Our comparison table features a selection of providers from who we receive commission. This table is initially ordered by Representative APR. You can use the options above the table to order it according to various criteria.

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Car Finance FAQs

What is car finance?

If you can't afford a car outright, but can spread the cost over a period of months from your regular income, then a car financing scheme could be an option. These come in various forms and set ups with different associated costs, depending on each scheme.

Broadly they follow the same structure: you pay a certain amount as deposit, and the remaining value of the car on an agreed upon interest rate, is spread over a period of months. The finance is secured against the car, which means you do not own the car until the finance agreement ends.

Where can I get car finance from?

Car dealers and manufacturers offer car finance options, but you can shop around for great deals yourself in advance of your car purchase.

Can I get a personal loan for my car?

A personal loan will allow you to buy your car with money loaned to you. This means that unlike car finance, you will own the car from the outset. The loan amount and interest rate will be based on your credit score.

What types of personal loans are available to buy a car?

The terms of your loan will depend on your circumstances, your credit rating, and the type of plan you choose. Here are a few types of personal loan available for your car purchase:

  • Personal unsecured loan: This type of loan is a standard personal loan, with no security required and are available from many providers, not just banks.
  • Personal secured loan: This approach will mean stumping up a significant asset, such as your home, as security against the loan.
  • Personal guarantor loan: This promises that a friend or relative will take over the payments if you default. An option if you have a low credit rating.

What types of car finance are available to buy a car?

Here are the main payment plans you are likely to find on the market:

  • Hire Purchase: The straightforward finance option. The finance company purchases the car, and you hire the car from them. Your monthly repayments repay the total amount owed and you have the option to own the car at the end
  • Conditional Sale: Very similar to hire purchase, except you are contractually obliged to become the owner of the car at the end of the payment scheme.
  • Personal Contract Plan: Again, set up like hire purchase but you are only repaying part of the total amount due. At the end of the finance agreement the remaining amount can be paid in a lump sum (balloon payment). There are options around handing the vehicle back at the end, but also sometimes restrictions around the mileage and condition of the car.
  • Personal Leasing: A fixed term car rental scheme usually applicable to brand new cars and typically runs for 2-4 years, at which point the car returns to the leasing company. This option can work for those who like to regularly update their car and enjoy the associated benefits of having a new vehicle.

How do I choose which form of car finance to use?

The scheme you choose will depend on your personal circumstances: your credit rating, the amount of money you have to spend, and whether or not you want to own the car immediately or at all.

Manufacturers and dealers are infamous for not offering you the best deal available, so make sure you explore all the options beforehand to find out which is the right deal is for you.

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