How To Secure Car Finance When You Have Bad Credit

How To Secure Car Finance When You Have Bad Credit

How To Secure Car Finance When You Have Bad Credit

So you have a bad credit rating and want a second chance on a car loan. It’s tricky but it’s not impossible. Be well prepared to present your application in the best possible light.

Here are some tips to help with your preparation.

1. Obtain Your Credit Report Free

There is no point in applying for a bad credit car loan without fully knowing and understanding what is on your own personal credit file. You can obtain a free copy of your report at any time through the website  When you obtain your report, you can see what your bad credit issues are and be in contact with those who listed the bad credit to understand why they are there.

2. Sort out your bank balance

A bad credit car loan lender will want to review all your bank accounts when assessing your car loan. My advice here is to ensure that you have not overdrawn on any of your bank accounts by allowing your account to have a negative balance (unless you have an overdraft facility), and ensure that you had sufficient funds in your account if you have any direct debits set up. The best way to conduct your banking prior to applying for a bad credit car loan, would be to show actual savings increase over a period of time, and this will give you a great chance of car loan approval.

3. Demonstrate a stable source of income

If you have moved around in your jobs recently, you may want to wait to apply until you have some better employment stability, as this is your income to be able to repay your bad credit car loan. If you are on probation with your current employer, you will need to wait until your probationary period is up, and if you are casually employed, you may need to wait until you have been with your employer for a minimum of 12 months.

4. Don’t move house too often

The bad credit car loan financiers get more nervous if you have had multiple residential addresses in a short period of time, as they may take the view that you could be harder to contact if they were required to do so. If at all possible, try and be at your current residency for as long as possible prior to applying for a car loan.

5. Be honest

If you want the best chances of obtaining a bad credit car loan approval, you should disclose absolutely everything to the financier on your application, good or bad. They will find out anyway. And if you are deemed to be withholding important information, it may cost your chances at an approved car loan.
Shaun McGowan is the co-founder of and writes about helping people ascertain car loans with bad credit at


leave a comment

Create Account

Log In Your Account