Poor Credit Car Finance – Explore Your Options with Chapelhouse

Can I get car finance with bad credit?

Yes, it may still be possible to get car finance if you have a poor or limited credit history.

There isn't one universal credit score that guarantees acceptance. Different lenders use their own criteria when assessing an application, and your credit history is only one part of the overall assessment.   A lender may consider factors such as your income, regular outgoings, existing financial commitments, previous credit history and the amount you are looking to borrow.

If one lender is unable to offer finance, there may be other options available through our panel of lenders. However, applying for finance does not guarantee that an agreement will be offered.

What is bad credit car finance?

Bad credit car finance isn't a specific type of finance agreement. The term is generally used to describe finance sought by customers who have experienced difficulties with their credit history.

This could include things such as:

• Missed or late payments
• Defaults
• County Court Judgements (CCJs)
• Previous finance arrears
• High levels of existing borrowing
• A limited credit history
• Previous applications for credit
• Financial associations with other people

Having one or more of these on your credit history doesn't automatically mean you'll be declined.

Finance providers make their own lending decisions based on the information available to them and their individual lending criteria.

How can Chapelhouse help with bad credit finance?

Chapelhouse Motor Co Ltd is a credit broker, not a lender.

We work with a panel of lenders and can introduce customers to finance providers based on the information they provide during the application process.   Our approach is designed to help customers understand the finance options that may be available to them, while ensuring that affordability is considered as part of the application.

Our experienced team can talk you through the finance process, answer your questions and help you understand the information provided by the lender.

We will never encourage you to enter into an agreement that you cannot reasonably afford.

What do lenders look at when you apply for car finance?

Your credit score is only one part of a finance application. Lenders may consider a range of information when deciding whether to offer finance.

Your credit history

Your credit report can show lenders how you've managed borrowing in the past. Missed payments, defaults and other financial difficulties may affect the decision a lender makes.

However, having a poor credit history doesn't automatically mean that finance is unavailable.

Your income

Lenders need to establish whether the proposed repayments are affordable based on your circumstances.

You may therefore be asked to provide information about your income and employment.

Your regular outgoings

Your existing financial commitments can also be considered.

This can include household bills, existing loans, credit cards and other regular expenses.

The amount you want to borrow

The value of the vehicle and the amount you need to finance can influence the affordability assessment.

Choosing a vehicle with repayments that fit comfortably within your budget may improve the affordability of an application.

Your individual circumstances

Every application is different.

Lenders have their own criteria and may assess information differently, which is why there isn't a single credit score that guarantees car finance acceptance.

Can I get car finance with a low credit score?

A low credit score doesn't necessarily prevent you from applying for car finance.

Credit reference agencies use different scoring systems, while lenders also have their own assessment criteria. This means there isn't a specific score that automatically qualifies or disqualifies someone from car finance.

If you have concerns about your credit history, checking your credit report before making an application can help you understand your current position.

It's also important to consider how much you can comfortably afford to repay before choosing a vehicle.

Can I get car finance with a CCJ or default?

A CCJ or default can make obtaining finance more difficult, but it doesn't necessarily mean that every finance application will be declined.

The age and circumstances of the entry, your current financial position and the lender's criteria can all play a part in the decision.

If you have experienced financial difficulties, it's important to be open and accurate when completing a finance application.

The lender will make the final decision on whether finance can be offered.

What if I've been refused car finance before?

Being declined for finance can be frustrating, but it doesn't necessarily mean you will be refused by every lender.

Different finance providers have different lending criteria, so a previous unsuccessful application doesn't automatically determine the outcome of a future application.

However, making multiple applications within a short period can result in several hard credit searches appearing on your credit report.

Rather than repeatedly applying, it's sensible to understand why an application may have been unsuccessful and consider whether your circumstances or the amount you are looking to borrow need to change.

Our team can explain the finance process and help you understand the options available through Chapelhouse.

How can I improve my chances of getting car finance?

There are several practical steps you can take before applying.

Check your credit report

Review your credit report to make sure the information held about you is accurate.

If you find incorrect information, contact the relevant credit reference agency to have it investigated.

Make sure your information is up to date

Make sure your current address, employment details and other personal information are accurate.

Keep up with existing payments

Paying your existing financial commitments on time can help demonstrate responsible credit management.

Avoid unnecessary credit applications

Making several applications close together can result in multiple credit searches and may make it more difficult to demonstrate financial stability.

Consider a vehicle within your budget

The amount you need to borrow is an important part of affordability.

Choosing a car with repayments that comfortably fit your budget may be more appropriate than stretching yourself to finance a more expensive vehicle.

What type of car should I choose if I have bad credit?

If you're concerned about your credit history, affordability should be one of the most important considerations when choosing your next car.

A lower-priced vehicle could mean a smaller amount to finance and potentially more manageable monthly repayments.

It's also worth considering the ongoing cost of running the vehicle, including:

• Insurance
• Fuel or charging costs
• Servicing
• Maintenance
• Road tax where applicable
• Tyres and other consumables

Choosing a car that is affordable to buy **and** affordable to run can help you keep your overall motoring costs under control.

At Chapelhouse, you can explore a wide range of new and used vehicles and use the finance information available on individual vehicle listings to help understand potential monthly costs.

Does car finance improve your credit score?

Successfully managing a finance agreement can contribute to a positive credit history, provided payments are made in accordance with the agreement. 

However, taking out finance should never be viewed simply as a way of improving your credit score.

You should only enter into a finance agreement if the repayments are affordable and you are confident that you can maintain them throughout the agreement. 

Missing payments can have a negative impact on your credit history.

What happens when I apply for car finance with Chapelhouse?

Applying for finance through Chapelhouse is designed to be straightforward.

1. Complete your finance application

Provide the information requested about your circumstances, income and financial commitments.

2. Your application is assessed

The lender will assess your application against its own lending and affordability criteria.

3. Explore the finance option available

If a lender is able to offer finance, you'll be provided with information about the proposed agreement, including the applicable rate, deposit, term and repayments.

4. Choose your vehicle

Once you've established what may be affordable, you can explore our range of new and used cars and find a vehicle that suits your needs and budget.

5. Complete your purchase

If you decide to proceed, the finance agreement will be completed with the relevant lender before you take delivery of your vehicle.

Why choose Chapelhouse for car finance?

Chapelhouse has been helping customers with their vehicle purchases for many years.

When you choose Chapelhouse, you'll benefit from:

• A panel of finance lenders
• Finance options across new and used vehicles
• Online finance applications
• Finance calculators on vehicle listings
• A wide selection of quality used cars
• Support from our experienced sales and finance teams
• Dealerships across the North West
• FCA-regulated credit broking services

Chapelhouse Motor Co Ltd is authorised and regulated by the Financial Conduct Authority for consumer credit activities, FRN 668178.

We're a credit broker, not a lender.