What Credit Score Do You Need for Car Finance?
If you’re considering car finance, you might be wondering what credit score you need to get approved. The truth is, there’s no single minimum score, as lenders consider multiple factors beyond just your credit rating.
However, understanding how credit scores impact car finance can help you increase your chances of approval and secure a better interest rate. This guide explains:
- How credit scores affect car finance
- The typical credit score ranges lenders look for
- What to do if you have a low credit score
- Steps to improve your score before applying
1. How Credit Scores Affect Car Finance
Lenders use your credit score to assess risk and determine:
- Whether you’ll be approved
- What interest rate (APR) you’ll receive
- How much you can borrow
A higher score typically means better finance options, while a lower score may result in higher interest rates or additional requirements, such as a larger deposit.
2. What Credit Score Do You Need for Car Finance?
There’s no universal minimum score, but most lenders use the three major UK credit reference agencies:
Excellent (960+ Experian, 811+ Equifax, 726+ TransUnion)
- Likely to get the best interest rates and lowest monthly payments.
- Access to a wide range of lenders.
Good (881-960 Experian, 671-810 Equifax, 605-725 TransUnion)
- Strong chance of approval with competitive APR.
- More choice of lenders and finance terms.
Fair (721-880 Experian, 531-670 Equifax, 566-604 TransUnion)
- May still get approved but with higher interest rates.
- Some mainstream lenders may decline, but specialist lenders exist.
Poor (561-720 Experian, 439-530 Equifax, 551-565 TransUnion)
- Approval is possible, but expect higher interest rates or a larger deposit.
- May need to apply through a bad credit lender.
Very Poor (Below 561 Experian, 438 Equifax, 550 TransUnion)
- Most mainstream lenders will decline, but bad credit car finance options exist.
- A guarantor or higher deposit may help with approval.
Check your eligibility now to see what car finance options are available – Check Now.
3. Can You Get Car Finance with a Low Credit Score?
Yes, even with poor or very poor credit, it’s possible to get car finance. However, lenders may:
- Charge higher interest rates to reduce their risk.
- Require a larger deposit (e.g., 10-20% of the car’s value).
- Ask for a guarantor – someone with good credit to back the loan.
If your score is low, choosing the right lender is key. Some lenders specialise in bad credit car finance, offering deals to those with financial difficulties in the past.
Not sure what options are available? Check Your Finance Eligibility Now.
4. How to Improve Your Credit Score Before Applying
Improving your credit score before applying for car finance can:
- Increase your chances of approval
- Help you secure a lower interest rate
- Make your monthly repayments more affordable
Steps to Boost Your Score:
- Check your credit report for errors – Mistakes can lower your score unfairly.
- Pay all bills on time – Even utility bills and phone contracts help build credit history.
- Reduce credit utilisation – Keep balances below 30% of your credit limit.
- Register on the electoral roll – Helps lenders verify your identity.
- Avoid multiple finance applications – Too many hard checks can temporarily lower your score.
Further Reading: For more tips, read our How to Improve Your Credit Score for Car Finance guide.
What Credit Score Do You Need for Car Finance?
- There’s no set minimum score, but higher scores lead to better finance options.
- Good to excellent credit makes approval easier and secures lower interest rates.
- Even with poor credit, car finance is possible through specialist lenders.
- Improving your credit score before applying can increase approval chances and reduce costs.
If you’re unsure what car finance options are available to you, the best step is to check your eligibility before applying.
Find out what deals you qualify for today – Check Your Finance Eligibility Now.