Why Check Your Credit When Considering Car Finance?

If you're exploring car finance, understanding your credit profile can be useful. With CreditKnowledge, you can access your credit report and score for free and get a clearer view of the information held about you.

Car finance is a form of borrowing, and finance providers often look at information from credit reference agencies when they receive an application. They use this alongside other details and their own criteria, and every provider sets its own.

Because of that, many people find it useful to know what's on their credit report before they borrow. It helps you:
  • Know what's recorded. See the accounts, payments and searches that appear under your name.
  • Spot anything unfamiliar. Check that your details and accounts look right.
  • Feel better prepared. Go into any borrowing decision with a clearer picture.

Getting Car Finance with Bad Credit

Having a low credit score can make it difficult to get approved for car finance, but it’s still possible. At CreditKnowledge, we work with a range partners with a panel of trusted lenders specialising in bad credit car finance. Together, we can help you find affordable options tailored to your personal circumstances.

Here’s what to keep in mind:
  • You may face higher rates due to your current credit history.
  • Missing payments could damage your credit rating further.
  • HP and PCP use the car as security, so approval could be more likely.
  • Consistently making payments could gradually improve your score.
Improving your credit score can potentially give you access to better rates. Learn what’s lowering your score with your free credit report.

Car Finance Calculator

See an instant estimate of the car finance you could qualify for. Our car finance calculator provides a rough estimate of monthly payments for Hire Purchase (HP) and Personal Contract Purchase (PCP) options. This estimate is based on your monthly budget, your estimated credit score, and how long you need it for.

The CK car finance calculator provides an estimate for illustrative purposes only, and it is based on the information you have entered. It does not guarantee you will be approved for a loan, and actual rates and repayments may differ.

Rates start from 9.9% APR.
Representative example: borrowing £7,500 over 48 months with a REPRESENTATIVE APR of 23.9%, an annual interest rate of 23.9% (Fixed) and a deposit of £0.00, the amount payable would be £234.76 per calendar month, with a total cost of credit of £3,768.48 and a total amount payable of £11,268.48.
Rates may differ as they are dependent on individual circumstances. Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status. No initial impact to your credit score but a hard search will be added to your credit profile if you decide to proceed with finance.

Please note that not all applicants will qualify for a loan, and not all lenders offer the full range of loan amounts or terms shown. We provide a free loan comparison service and act as a credit broker, not a lender. We may receive commission or other fees from providers if you take out a product through our service.

We search a panel of lenders and specialist motor finance providers. Depending on your circumstances and eligibility, you may be offered HP, PCP or a personal loan that could be used towards the purchase of a vehicle. Not all finance options are available to everyone, and some may only be available to homeowners.

You can check your eligibility with no impact to your score. Only once you decide to proceed with a specific finance option will a hard credit check be conducted, which may affect your credit score.

Please ensure that you can afford the repayments before taking out any form of credit. 

Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk