Can I Get Car Finance with a 400 Credit Score?
A 400 credit score might sound worrying, but it doesn’t automatically disqualify you from getting car finance.
Thousands of UK drivers with poor credit history secure car loans every year. Many go on to rebuild their credit score through consistent monthly repayments on their finance agreement.
If your score is around 400, here’s what that means, how lenders view it, and what you can do to improve your approval chances of getting your dream car.
What Does a 400 Credit Score Mean?
There’s no single universal credit score in the UK. The three main credit agencies use different scoring scales:
Experian (0–999) – A score of 400 is considered poor
Equifax (0–1,000) – A score of 400 is considered poor or very poor
TransUnion (0–710) – A score of 400 is roughly equivalent to fair (similar to 500-550 on other scales)
A 400 credit score generally falls into the poor range, meaning lenders see you as higher risk. But higher risk doesn’t mean automatic rejection. It just means you need to be more strategic about who you apply with.
Can You Get Approved with a 400 Credit Score?
Yes, it’s possible. While mainstream banks often decline applications with low credit scores, many specialist lenders and credit brokers focus specifically on bad credit car finance.
These lenders look beyond your credit score. They also consider:
Your income and affordability – Can you comfortably manage the monthly repayments on your current income?
Employment stability – Have you been in your job for at least three months?
Your deposit – A larger deposit reduces the lender’s risk and can improve the terms you’re offered.
The vehicle – Lenders assess whether the new car’s value matches your financial profile.
For example, someone with a 400 credit score who’s been employed full-time for a year, has no recent missed payments, and can put down a £1,000 deposit might be approved ahead of someone with a slightly higher score but unstable income.
What Lenders Look for Beyond Your Credit Score
When assessing car finance applications, lenders review your entire credit file, not just your score. Important factors include:
Recent payment history – Have you been making payments on time recently, or have you missed any?
Debt-to-income ratio – How much credit are you using compared to what you earn?
Employment length – Steady employment proves reliability to lenders.
Existing commitments – Other loans or credit cards affect whether you can afford new repayments.
The more stable your overall financial picture, the better your chances, even with a bad credit rating.
How to Improve Your Approval Chances
If you’re starting with a low credit score, take these steps before applying:
Check your credit report – Review all three UK credit agencies (Experian, Equifax, and TransUnion) for errors or outdated information. Dispute anything that’s incorrect.
Register on the electoral roll – Being registered to vote adds credibility and can improve your credit rating.
Pay down existing debts – Lower credit utilisation makes you less risky to lenders.
Save a deposit – Even £500 to £1,000 can unlock better finance deals and lower interest rates.
Avoid multiple hard credit checks – Use a credit broker that performs soft searches so you can check eligibility without damaging your credit score further.
Motorly offers soft eligibility checks that won’t affect your credit file, letting you see your options before formally applying.
What Interest Rates to Expect with a 400 Credit Score
A bad credit score typically means higher interest rates because lenders price in the additional risk. This can lead to a higher total cost overall. However, these rates can still be manageable, especially with a larger deposit or shorter repayment term.
While your finance agreement may cost more overall than it would with good credit, making consistent on-time payments can rebuild your poor credit score and give you access to lower rates in the future.
Can Car Finance Rebuild Your Credit Score?
Yes. If you keep up with your monthly repayments and complete the finance agreement, it strengthens your credit history over time. Every payment is reported to the credit agencies and adds positive data to your record. It’s worth checking your credit report after you have made the final payment.
This helps you move from poor credit to fair credit to good credit score, meaning next time you apply, you’ll qualify for lower interest rates and better car finance deals.
Setting up a direct debit for repayments is the simplest way to ensure you never miss a payment and build a track record lenders trust.
Getting Car Finance with a 400 Credit Score
A 400 credit score makes getting a car finance agreement more challenging, but it’s not impossible. Many customers with poor credit find car loans that fit their budget through specialist lenders who understand bad credit situations.
Focus on proving your affordability, making monthly payments on time, and saving a deposit. These factors can make the difference between approval and rejection.
Ready to find out where you stand? Check your eligibility for bad credit car finance with Motorly. It’s free, takes a few minutes, and won’t affect your credit score.
Frequently Asked Questions
Can I get car finance with a 400 credit score?
Yes. A 400 credit score is considered poor, but specialist lenders regularly approve car finance for applicants with low scores. Stable income, a deposit, and recent clean payment history all help your chances.
What’s the lowest credit score for car finance?
There’s no universal minimum. Some specialist lenders approve customers with scores as low as 300, depending on affordability, employment history, and overall credit file.
Do I need a deposit if my credit score is 400?
Usually yes. A deposit reduces the lender’s risk, can lower your interest rate, and improves your approval odds. Even £500 can make a significant difference.
What interest rates will I get with a 400 credit score?
Interest rates are generally higher because lenders see people with a credit score of 400 as high risk. Expect anywhere from 20-30% APR depending on your income, deposit, and the vehicle value.
Can I rebuild my credit with car finance?
Absolutely. Making every monthly repayment on time and completing your finance agreement helps improve your credit file over time, giving you access to better rates in the future.