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Can I get PCP car finance with bad credit?

Joe Achillies
Written by Joe Achillies
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Are you eyeing that shiny new car but worried about your bad credit? You're not alone. Many people wonder if it's possible to secure PCP car finance with less-than-perfect credit scores. In this article, we'll explore the ins and outs of PCP (Personal Contract Purchase) car finance, exploring whether it's possible to get PCP with bad credit, and what you need to know to increase your chances of approval.

Can I get PCP car finance with bad credit?

Yes, you can still get PCP car finance even if you have bad credit. While having a great credit score certainly increases your chances of approval and may unlock better deals, having bad credit doesn't necessarily mean you're automatically disqualified. Many lenders understand that people go through financial difficulties, and they may offer bad credit car finance, including PCP agreement options that are tailored to people who have bad credit.

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What credit score is required for PCP?

There isn't a specific credit score requirement set in stone for PCP car finance. Different lenders have varying criteria, and while some may prefer applicants with higher credit scores, others may be more lenient towards people looking for PCP with bad credit. Generally, a credit score below 600 is considered to be a poor credit score, but even if your score falls within this range, you may still find lenders willing to work with you.

What is the criteria for PCP finance?

While having a credit score is an essential factor, lenders also consider other aspects of your financial situation when evaluating your eligibility for PCP finance. These may include your income, employment status, existing debt obligations, and the amount of deposit you can pay upfront. Some lenders may ask for a larger deposit or charge higher interest rates for those with bad credit, which helps reduce the level of risk for them.

Can I get a new car on PCP with a bad credit history?

Yes, it's possible to get a new car on PCP with a bad credit history. However, you may need to look for specialised lenders or dealerships that cater to people with bad credit. Additionally, be prepared for higher interest rates or stricter terms compared to those offered to borrowers with good credit.

My partner wants to get hire purchase but has a bad credit rating. Can you help?

Yes, we should be able to help with this at Car Finance 247. It's certainly possible to get hire purchase (HP) car finance even with bad credit. Similar to PCP finance, some lenders specialise in offering HP agreements to people with less-than-perfect credit scores, and we work with several lenders like this who we can reach out to. It’s important to bear in mind, however, that you may encounter stricter terms or higher interest rates with these types of lenders, though it does increase your chances of approval.

I've defaulted on all my finance agreements and I can't get car credit anywhere, can you help?

Yes, you still have options even if you've defaulted on all your finance agreements and are struggling to secure car credit, and we may be able to help you explore these options at Car Finance 247. We work with a variety of lenders who specialise in bad credit car finance, as well as some lenders who may consider you if you’ve been refused car finance in the past. If you get in touch with us and tell us your situation, we can refer you to these lenders to see if we can find you a deal.

You also have other options you can look at yourself in the meantime, including trying to improve your credit score by making timely payments on your existing debts and settling any outstanding defaults. You could also ask for help from credit repair specialists who can help you navigate the process of rebuilding your credit.

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I've just passed my driving test but I'm unemployed. I have bad credit. Can I get car finance?

Being unemployed with bad credit can make it more challenging to secure car finance, but it's not impossible. Lenders may be more willing to work with you if you can demonstrate alternative sources of income, such as benefits or a co-signer (also known as a guarantor) with good credit. Additionally, you could consider exploring other options like leasing or purchasing a used car, which may be easier to achieve in your current financial situation.

​​I have bad credit & need car finance. I also have a part exchange. Can you help?

Yes, we’re no strangers to helping people get car finance with bad credit here at Car Finance 247. We work with a large panel of lenders, some of whom specialise in bad credit PCP and HP car finance, so we can refer you to them to see if we can find you a finance offer that suits your needs. Having a car to part exchange as part of the deal can also be an advantage when seeking car finance with bad credit. This is because you can use the value of your part ex vehicle to reduce the amount you need to finance, potentially improving your chances of approval.

Can I get car finance with a default and bad credit?

Having a default on your credit report may make it a bit more complicated for you to get car finance, but it doesn't necessarily mean you're out of options. Some lenders specialise in bad credit car finance and may be willing to overlook a single default, especially if it's older and you've since improved your financial situation. However, be prepared for lenders to offer you stricter terms and higher interest rates because of your credit history.

I am self-employed and have a bad credit history, can you help?

Yes, we should be able to help you with securing car finance even with bad credit history, as we work with a variety of lenders who specialise in bad credit car finance. Being self-employed shouldn’t stand in your way either, so long as you can prove your income with the correct documentation. Lenders may need to see things like your self-employment tax returns or bank statements that prove you have a stable income, so be prepared to provide these when you apply.

Are you more likely to be accepted for PCP?

Your likelihood of being accepted for PCP car finance depends on various factors, including your credit score, income, employment status, and the lender's criteria. While having good credit certainly improves your chances, people with bad credit can still find lenders willing to approve their application. Consider improving your credit score, saving for a larger deposit, or exploring alternative financing options to increase your chances of approval

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