Can I get guaranteed car finance?

Guaranteed car finance is often advertised, but there’s no such thing. Find out why you should be wary of so-called guaranteed car finance in our guide. Also, learn how to boost your chances of approval even if you have bad credit or no deposit.

Does guaranteed car finance exist?

No. Some companies say they offer guaranteed car finance, but this isn’t true. Car finance is never guaranteed until you’ve applied and been accepted. Avoid companies that advertise guaranteed car finance — they often target people with low incomes and bad credit. Look for reputable lenders that are regulated by the Financial Conduct Authority (FCA).

Why can’t lenders guarantee car finance?

Lenders should always check to see if a car finance offer is right for you before approving your application. It’s the responsible thing to do, as it lowers the risk of you missing payments and getting into financial trouble. Lenders typically look at things like your credit score, income and employment status to help them make a decision.

Can I get guaranteed car finance with no credit check?

No, a credit check is an important step lenders take to understand your financial situation. It lets them search information on your credit report — like how much you currently owe and if you’ve been making payments on time. Be cautious of any lenders who say they offer no credit check car finance.

Can I get pre-approved car finance?

Yes. Pre-approved car finance is different from guaranteed car finance (which doesn’t exist). If you see a pre-approved offer when you search car finance, it means we think you’ll be accepted if you apply. Pre-approval is based on basic information about you. The lender will look at more detailed information when you apply. So it’s possible to be turned down for pre-approved car finance — just less likely.

Where can I find pre-approved car finance?

Experian shows if you’re pre-approved for lots of different car loans. A car loan is a personal loan used to buy a vehicle outright. It’s not secured against your car and there’s no deposit. You’ll make fixed monthly payments to pay back the loan plus interest.

Searching car loans is free, takes less than two minutes and won’t affect your credit score. If you see a pre-approved loan it’s a sign you can apply with confidence.

If you’re looking for a different type of car finance there are several options including hire purchase (HP) and Personal Contract Purchase (PCP). Some providers may offer pre-approval on these agreements so it’s worth asking. Be wary of so-called guaranteed car finance — this is different from pre-approval and isn’t real.

What happens if I’m rejected for car finance?

Try to find out why you were refused credit so you can sort out the problem. Remember, it’s always the lender who decides whether to approve your application. Credit reference agencies like Experian don’t make lending decisions — but we help you understand how lenders see you with your free Experian Credit Score.

Avoid making lots of applications in a short space of time. Your credit score dips each time you apply but should recover over time if you take care of it.

How can I improve my chances of getting car finance?

You can’t get guaranteed car finance, but you can try to boost your chances of approval. Here are some ways to help lenders see you in a better light:

• Find the right offer. Make sure the payments fit comfortably in your budget. If it’s a squeeze, consider borrowing less or finding a cheaper annual percentage rate (APR). Borrowing for longer may be another option, although you’ll pay more interest overall.
• Tidy up your finances. Stick to a budget in the months leading up to your application and consider paying down any credit cards.
• Improve your score. Your Experian Credit Score is based on the information in your credit report. A higher score means lenders are more likely to accept you.
• Avoid lowering your score. Things like late payments and using lots of your available credit can hurt your score, making lenders think you’re a higher risk.
• Provide accurate information. The details on your car finance application should be true and up-to-date. Make sure you’re registered to vote at your current address to help lenders confirm where you live.

Can I get car finance with a poor credit rating?

Yes, it’s possible to get car finance with bad credit — although there’s no such thing as guaranteed car finance for bad credit. If you’re finding it hard to get accepted, consider using a guarantor. This is someone (often a parent or partner) who agrees to make the payments if you can’t. They must pass the lender’s checks and you should both understand the risks before applying.

See if you’re eligible for car finance with Experian. We show you offers you’re more likely to get based on your unique data. And don’t worry, comparing car finance doesn’t affect your score or cost a thing.

Can I get car finance with no deposit?

Yes, zero deposit car finance exists. There’s no deposit to pay on a car loan. It’s harder to skip the deposit with other types of car finance — but we can help you find the right offer. Search car finance from various lenders today without affecting your credit score.

How do I check my eligibility for car loans with Experian?

Guaranteed car loans don’t exist, but we can help you apply with confidence. Experian uses your unique data to calculate your chances of approval. Look for your eligibility rating when you compare — and keep an eye out for pre-approved loans, which means we think you’ll be accepted if you apply.