Refused
car finance

If you've faced rejection for car finance due to bad credit, CarFinance is here to help. Our expert team understands the challenges you're facing and is committed to finding the best deal and solutions tailored to your circumstances. With our range of car finance options, even those with a poor credit score can get back on the road.

At CarFinance, we offer Hire Purchase and Personal Contract Purchase deals that spread the cost of your car over manageable monthly repayments. This can help improve your credit score over time, making future financing easier to obtain. Our focus is on affordability, ensuring that your your loan repayments fit within your budget.

Don't let past rejections hold you back. Contact CarFinance car finance provider today and let us help you find the refused car finance solution you need.

What happens if you've been refused car finance?

Being refused car finance can be disappointing. It often happens because of problems with your application or a not-so-great your credit profile or history. To figure out why you were declined, check your credit score. Then, have a chat with the finance company. They can shed light on what went wrong. By understanding the issues and working on them, like fixing mistakes on your application or improving your credit score, you can boost your chances next time.

Can I get car finance if I’ve been refused elsewhere?

Can you still get car finance if other lenders have said no because of your bad credit? Don't worry, at CarFinance, we've been helping people like you for a long time.

Getting a refused car finance quote from us is quick and easy, taking just 5 minutes. And you'll find out straight away if we can help. The best part? We do a soft search at the start, so it won't affect your credit score. We only do a hard search if you decide to go ahead with a car finance agreement anyway. Don't let past rejections stop you; let CarFinance get you back behind the wheel.

Reasons for being refused for car finance

Very bad credit history

A very poor credit history, with a low credit score, can lead to refusal for car finance or acceptance with higher interest rates. It's essential to work on improving your credit score before applying to boost your chances of approval. By taking steps to enhance your creditworthiness, such as paying bills on time and reducing debt, you can increase your credit rating and the likelihood of being accepted and securing declined car finance on more favourable terms.

Your age

There are rules about how old you need to be to get car finance. If you're under 18, you legally can't get car finance deal. Even if you're a young adult, lenders might be cautious about giving you car finance because they see you as a higher risk. It's important to know about these age rules and think about other options if you're too young for car finance. Young drivers can look into things like learner driver insurance until they're old enough to get car finance.

Provisional licence

Lenders often decline car finance applications if the applicant only has a provisional licence. It's better to wait until you have a full licence or consider a personal loan from a bank instead. Applying for refused car finance with a provisional licence is usually unsuccessful. Instead, focus on improving your credit score and saving for a deposit before seeking car finance.

You are self-employer or unemployed

Lenders might hesitate to approve car finance for self-employed or unemployed individuals because they worry about their ability to make the monthly payments. Self-employed applicants can boost their chances by showing evidence of at least three years' worth of income. This reassures lenders that they have a stable income and can meet their financial commitments. If you're unemployed, it's advisable to focus on finding employment before applying for car finance.

Will a refused car finance application affect your credit rating?

When you apply for car finance, lenders conduct a hard check on your credit report, leaving a visible mark on credit file for future lenders. However, whether your application is approved or rejected isn't recorded. Too many hard checks can lower your credit score, so it's wise to apply sparingly. It's essential to be mindful of how frequently you apply for car finance to avoid negatively impacting your credit score.

What happens to payments if i'm refused for car finance?

Your repayments might be higher if you've been refused car finance elsewhere. Car finance terms and rates are often influenced by factors like your credit score and deposit size. At our company, we understand financial challenges happen to anyone. That's why we assess your application individually, offering personalised solutions. Our experienced team provides answers, not just computer-generated scores. If approved, we'll create a flexible repayment plan tailored to you.

Tips for improving chances your chances of getting car finance

1. Find out reasons: Understand why your application was rejected by speaking with the lender. This insight can help you address any issues before reapplying.
2. Wait between applications: Avoid making multiple applications in a short period, as this can negatively impact your credit score. Allow some time between attempts.
3. Improve credit score: Take steps to boost your creditworthiness, such as paying bills on time, reducing outstanding debt, and checking for errors on your credit report.
4. Consider cheaper car: Opt for a more affordable vehicle that fits within your budget. This increases the likelihood of approval for car finance.
5. Choose hire purchase: Explore Hire Purchase deals, where you pay for the car in instalments, as this can be a more accessible option for those with a less-than-perfect credit history.