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Have you been refused car finance in the past? That doesn’t mean you need to give up on buying your dream car.

Getting car finance can be a vital step if you are looking to buy a car. CarMoney can help you find the finance providers that are right for you – some even specialise in helping those who have been refused a car loan.

It can be disheartening if you have been refused car finance. But just because one lender has refused your application doesn’t mean you should give up on getting the car you want.

There are many car finance companies that specialise in helping people who have been refused credit in the past. There are a few steps you can follow to improve your chances of obtaining car finance, even if you have been refused credit before.

Representative Example: Borrow £7,000 with £1,000 deposit over 48 months with a representative APR of 17.9%, monthly payment would be £171.83, with a total cost of credit of £2,247.83 and a total amount payable of £8,247.83. CarMoney Limited can introduce you to a limited number of finance providers based on your credit rating and we will receive a commission for such introductions this can either be a % of the amount borrowed or a flat fee. This does not influence the interest rate you’re offered in any way. CarMoney is a broker not a lender.



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If you’ve been refused car finance, it makes sense to find out why.

This can show you things to work on to improve your chances of getting credit in the future. The most common reasons why companies would refuse credit are:
Low credit score: If you have a low credit score, this may result in some lenders refusing credit automatically.

Limited credit history: If you have not had credit in the past, and haven’t built up a credit rating, some lenders may refuse finance.

Previous Bankruptcy or Repossession: Bankruptcy or repossession in the past can significantly impact a person’s creditworthiness.

High Debt-to-Income Ratio: If you already have a lot of debt, some lenders may refuse to add to this.

Depending on your situation, there are a few steps you can take to ensure lenders are more likely to approve your application.

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To make your finance application more likely to be approved, here are a few steps you can take – depending on why it was refused.

If your application was refused due to a limited credit history, you could apply for a credit builder credit card. If you use and pay off the balance regularly, you should build up a positive credit score fairly quickly.

If you have a high debt level, you could pay off any debts you can. If you are struggling to pay off debts, you could negotiate with existing creditors to reduce interest.
Paying off debts, and ensuring you don’t miss payments, will improve your credit score.

If you have been refused a car loan, you should also look at different lenders. The CarMoney ninjas will slice through the market, showing you the lenders that are most likely to approve your application. This means you don’t waste your time applying to lenders that won’t approve you.
Many of the lenders we work with specialise in helping people who have been refused car finance in the past.

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Choosing which type of car finance is right for you is an important step in your application.

Your history with car finance companies may influence which type of finance is right for you.

Hire Purchase: This is a simple and popular finance option. Essentially you hire a car from the finance company for a set period of time. Once you have made the final payment, the vehicle belongs to you. Lenders may repossess the vehicle if you miss payments, and monthly payments are usually higher.

Personal Contract Purchase: You don’t pay the full value of the car with PCP finance. Instead, you pay the depreciation of the value. At the end of the PCP agreement, you have to pay a lump sum if you want to own the vehicle. If you miss payments, the lender may repossess the vehicle. However, monthly payments are generally lower, and it is easier to change cars.

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It can be discouraging if you have been refused car finance, especially if you had your dream car in mind.

However, support from the CarMoney ninjas can make you more likely to find a lender that will approve your application.
Get a quote or contact us today.

Frequently Asked Questions

Why might I be refused car finance?

There are a number of reasons why you might be refused car finance. Some of the most common reasons include:

  • Poor credit score: Lenders will typically look at your credit score to assess your risk as a borrower. A poor credit score can indicate that you have a history of late payments or defaults on loans, which makes you more likely to default on your car loan.
  • Insufficient income: Lenders will also consider your income to make sure that you can afford to make the monthly payments on your car loan. If your income is too low, you may be refused car finance.
  • High debt-to-income ratio: Your debt-to-income ratio is the amount of debt you have compared to your income. A high debt-to-income ratio can indicate that you are already struggling to make your debt payments, and that you may not be able to afford to take on additional debt.
  • Unstable employment: If you have a history of unstable employment, lenders may be hesitant to approve you for car finance.

What can I do if I am refused car finance?

If you are refused car finance, there are a few things you can do:

  • Check your credit report: Get a copy of your credit report from all three major credit bureaus to see if there are any errors or inaccurate information. If you find any errors, dispute them with the credit bureaus.
  • Improve your credit score: There are a number of things you can do to improve your credit score, such as making all of your debt payments on time and in full, paying down your debt balances, and avoiding opening new credit accounts.
  • Increase your income: If possible, try to increase your income to make it easier to afford the monthly payments on a car loan.
  • Reduce your debt: If possible, pay down some of your existing debt to lower your debt-to-income ratio.
  • Contact CarMoney, our ninjas will check across our network of trusted lenders to find the best deals that match your needs and circumstances.

What to do if refused car finance?

If you face rejection for car financing, assessing your credit score, enhancing it, exploring different options by comparing offers, contemplating alternative solutions, or consulting with a financial advisor is recommended. It is important to remain composed, respond truthfully to any inquiries, and request feedback on the decision.

Who is eligible for bad credit car finance?

The eligibility criteria for bad credit car finance vary from lender to lender. However, most lenders will look at your credit score, income, and employment history when deciding whether or not to approve you for a loan. You may also need to make a larger down payment than you would if you had good credit.

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CarMoney LIMITED is authorised and regulated by the Financial Conduct Authority (FCA) for consumer credit activity and our registration number is 674094. Representative 17.9% APR. Over 18’s only. CarMoney IS A BROKER NOT A LENDER.

REGISTERED ADDRESS: Pioneer House, 2 Renshaw PL, Motherwell, ML1 4UF, Scotland.Company Number: SC467274.

All finance is subject to status and income. Written Quotation on request. CarMoney Limited can introduce you to a limited number of finance providers based on your credit rating and we will receive a commission for such introductions.