Car finance with bad credit
Many people who have bad credit assume that they won’t get approval for car finance. At Red Potato, we believe that you should have the opportunity to buy a quality used car even if you have bad credit. Because of this, we specialise in providing bad credit car finance for those who have a poor credit history. We can even help if you have previously been refused car finance elsewhere.
Our car loan criteria
If you have bad credit and are looking for a car loan, Red Potato can help, even if you:
- Have no deposit
- Are in a Debt Management Plan (DMP), Trust Deed or Individual Voluntary Arrangement (IVA)
- Have a County Court Judgment (CCJ)
- Previously have been declared bankrupt
- Have any loan defaults due to missed payments
- Are self-employed
Although we will try to help anyone in any financial situation, approval for car finance is subject to status and income.
What is bad credit car finance?
Bad credit car finance is fundamentally the same as any other type of car finance. However, those who specialise in bad credit car loans will consider applications from customers with a poorer credit score. Whilst your credit score is likely to be considered, you will also be assessed on your ability to repay the loan.
How it works
There aren’t always clear reasons as to why people find themselves with poor credit. The economy, redundancy and increases in living expenses could all be contributing factors and elements outside of your control. We understand this and that’s why we consider applications from customers with poor credit scores. Whilst we take your credit score into account, we also look at what you can reasonably afford to pay each month. We will look at the car you wish to purchase as well as considering your other monthly outgoings and your past commitment to paying your debts.
Rather than having bad credit, you might instead have no credit as a result of not borrowing within the last 6 years. If this is the case, we can still consider your application for car finance.
Applying for a bad credit car loan
When you apply for bad credit car finance with Red Potato, we will take your credit score into consideration but also base our decision on your current financial circumstances and your ability to repay the loan.
Although we can’t guarantee car finance approval, we will always try our best to help, regardless of your financial situation. Customers who have previously been denied bad credit car loans may find that Red Potato can still help them with securing finance. Red Potato will also consider your application if you are currently in a debt management plan or IVA.
Our easy application process
Applying for car finance through Red Potato is quick and easy!
- Submit an online application.
- Send us your documentation (including bank statements, a copy of your UK driving licence and a months’ worth of payslips or your most recent tax return).
- A member of our team will then be in touch by phone to give you a lending decision.
- Have a look at our available used cars to find the right car for you.
If your application is approved, you will borrow the money from us to purchase the car and pay the total cost back over a period of 3-5 years. The type of finance agreement we offer is hire purchase and throughout your contract, we will own the car. Once you have made all payments due under the agreement then full ownership will transfer over to you.
What information is on your credit file?
You may be unaware of what information is held about you on your credit file. Your credit report holds personal information about you including your address and previous addresses, your electoral roll information as well as financial information including credit cards, loans, mortgages and overdrafts. Missed or late payments are also shown on here.
Your credit file will also hold any public records such as County Court Judgements (CCJs), bankruptcies or insolvencies. In addition, your credit file also includes your financial associates. This might be someone you have a joint mortgage or bank account with. You should be wary that your partner’s financial behaviour can be taken into consideration when applying for credit.
Unsure of your credit score?
If you’re unsure if you have bad credit, the best thing to do is check your credit score. There are a number of websites that you can use to get a free credit check including Experian and Check My File.
Martin Lewis suggests checking your credit score annually. In this article on the Money Saving Expert site, he provides information on the importance of your credit score and what you can do if it is low. We have also put our own article together on how to better understand your credit score and what you can do to improve it.
We’re here to help
We understand that there are many reasons why you have bad credit. We aren’t here to judge and will work to help you get car finance whatever your situation.
A member of our friendly team will provide continued help and support during each stage of your car finance application. We will take a look at your credit score, and perhaps your current situation, including your income and expenditure and what you can realistically afford. As a car dealership, we can also recommend what car types and models would be a suitable option for you, whilst introducing you to some of our latest deals.
Bad credit car dealership
Sourcing a reputable car dealer is especially important when you have a history of bad credit. Having access to a reliable, affordable car can be essential to your daily life to help you get to work and repay any debts.
Red Potato can also help you find the right car to suit your needs, as well as providing affordable bad credit car finance to purchase it.
We have over 4,000 used vehicles from dealers nationwide. Have a look at our available cars and provide your details if you find something you like.
Finance only options
If you’ve already found a car elsewhere we can still help you find affordable car finance. All we need is basic details of the car and dealer as part of your application. We will then take care of the rest!
What does it cost?
We offer finance from 19.9% APR to 29.9% APR. We will confirm the APR you are eligible for when we provide you with a lending decision. The APR you are offered is subject to our underwriting checks once we have received your documents and completed our affordability checks.
Representative example: Loan amount of £7,500 with a monthly repayment of £191.63 over a term of 60 months at a rate of 10.66% interest per annum (fixed). This is equivalent to 19.9% APR representative. Interest repayable is £3,997.80 with an option to purchase fee of £10.00. Total amount repayable is £11,507.80.
Have any questions about bad credit car finance?
If you’d like more information relating to bad credit car finance please take a look at our FAQs page. Otherwise please contact a member of our team and we will be happy to help.