What credit score is needed to finance a car?

Is there a minimum credit score needed to finance a car?

Many people turn to car finance to spread the cost of a vehicle over time. It allows you to get behind the wheel without having to pay the full amount upfront, and there are various options depending on your needs and financial situation.

A key factor that lenders consider when determining whether you qualify for car finance is your credit score. In this guide, we'll break down the role it can play in determining whether your application is successful. We'll also run through what credit score is typically needed to finance a car in the UK, and how you can improve your chances of approval.

What is a credit score?

A credit score is a numerical representation of your creditworthiness. It's calculated by credit reference agencies, based on your financial history, including your borrowing habits, payment history and current debts. It gives lenders an idea of how risky it is to lend you money.

What is a good credit score?

There are three main credit reference agencies in the UK: Experian, Equifax, and TransUnion. They each use a slightly different scoring method, so there is no universal measurement for what's considered a 'good' or 'bad' score. But generally speaking, your score is likely to fall into one of these categories:

Credit category	Experian (0–1250)	Equifax (0–1000)	TransUnion (0–710)	What this means
Excellent / Super-Prime	1,121-1,250	811–1000	628–710	Strong credit history, very low risk, and access to the best rates
(Very)* Good / Prime	1,001-1,120	671–810	604–627	Generally reliable repayment history and good access to mainstream finance
(Good)*Fair / Near-prime	861-1,000	531–670	566–603	Some minor issues or limited history are still acceptable to some lenders
(Fair)* Poor / Subprime	641-860	0–530	0–565	Missed payments, defaults, CCJs, or thin credit history
(Low)* Very poor / Deep subprime	0-640	Lower end of the range	Lower end of the range	Recent or serious credit issues, higher perceived risk

*Updated to reflect Experian's updated credit score banding in late 2025. 

How can different credit scores impact your plans to finance a car?

Let's break down the table above in a little more detail:

Poor credit score (300–579)

You may find it challenging to get approved for car finance because lenders may see you as a high-risk borrower. You should expect to pay more over time, but there are still options available:

• Specialist lenders: Catering to those with poor credit, these providers will likely offer car finance at high interest rates.

• Higher deposits: You might be required to make a larger down payment to secure the loan and reduce the lender's risk.

Fair credit score (580–669)

You may have better luck securing car finance, just not at the most attractive terms. You might still have to contend with:

• Higher interest rates: While approval is more likely, the interest rate may not be as low as those offered to borrowers with good or excellent credit.

• Additional terms: You may need to show proof of a steady income, a larger deposit or even a joint applicant to improve your chances of approval.

Good credit (670–739)

At this level, you're considered a low-risk borrower. You should be able to access competitive car finance offers, including:

• Lower interest rates: Lenders are more likely to offer favourable rates.

• Flexible loan terms: You might have a wider variety of lenders to choose from and access to different repayment options.

Excellent credit (740+)

This gives you the best chance of securing the most competitive car finance deals:

• Best interest rates: You're likely to be offered the lowest possible rates, saving you money in the long term.

• Preferred borrower status: You'll be able to shop around for the best loan terms, and you may even qualify for promotional offers or exclusive deals.

Can you get car finance with a low credit score?

The simple answer is yes, it is possible to get car finance with bad credit, though it may be more challenging.

Here are a few options if your score is on the lower end:

Bad credit car finance lenders

Some companies, like First Response Finance, specialise in helping people with poor credit. Interest rates may still be higher, but they can offer a route to finance where, otherwise, you may have found it difficult.

Joint loans

Including a joint application on your car finance application can boost your chances of approval – particularly if your credit score is low and the other person has a stronger credit history. Lenders assess both applicants' current financial situations and incomes when deciding on approval.

Larger deposit

Putting down a higher deposit reduces the total amount you need to borrow, which can be especially helpful if your credit limit is lower because of your low credit score.

In general, the more you can prove that you're capable of managing the loan, the better your chances of approval. For more information, check out our guide on how to get car finance with bad credit.

I’ve been turned down before – can I still get car finance with a bad credit score?

Being refused car finance in the past doesn’t mean you can’t apply again. In fact, many lenders specialise in helping people who've struggled to get approval elsewhere.

Here are some tips:

• Wait before reapplying – multiple applications in a short space of time can hurt your credit score
• Use a soft search – some lenders let you check your eligibility without affecting your credit score.
• Work with a specialist lender – companies like First Response Finance focus on car finance for individuals with bad credit and assess each application on a case-by-case basis.

I’m self-employed with bad credit – can I still get car finance?

Yes, being self-employed doesn’t automatically count against you – even if you’ve got a less-than-perfect credit history. Lenders will usually ask for a few extra details, such as:

• Proof of regular income (e.g. invoices, tax returns)

• Details of your business or trade

• Recent bank statements

As long as you can show that your income is reliable and you can afford the monthly payments, you’ve still got a good chance of being approved.

How to improve your credit score for better car finance terms

If you think your credit score could hinder your chances of financing a car, there are several steps you can take to improve it before applying:

• Pay on time: Ensure that you're paying all your bills, including credit card balances, loans and utilities, when they're due. Late payments can significantly affect your score.

• Reduce existing debt: Try to pay down outstanding debts, especially high-interest debts like credit cards, to improve your credit utilisation ratio.

• Check your credit report: Review your report for errors and dispute any inaccuracies with the credit reference agencies to ensure your score accurately reflects your financial history.

• Register on the electoral roll: Being registered to vote can improve your score as it confirms your address details.

What other factors do lenders consider when reviewing applications?

While your credit score is central to financing a car, lenders also take into account several other aspects of your situation:

Income and employment status

Lenders will want to ensure you have a steady income to make your monthly car finance repayments. Proof of employment or a stable salary can help your application.

Debt-to-income ratio

Lenders will assess your current debt obligations in relation to your income to ensure you can afford the additional car finance payment.

The car itself

The model, age and value of the vehicle you're looking to finance may also affect the approval process. For instance, a used car might require different terms than a brand-new one.

What credit score do I need to buy a car with First Response Finance?

There's no magic number for the credit score needed to buy a car with us, whether you choose a Hire Purchase (HP) or Personal Contract Purchase (PCP). We know everyone's situation is unique, and we treat every application on an individual basis. While it's true that a higher credit score makes financing a car easier and more affordable, that doesn't mean we automatically rule out anyone with a lower score.

If you're wondering what credit score you need to finance a car, why not use our free calculator tool? It offers you the option to enter a rating of 'Poor', 'Average', or 'Good', and gives you an idea of how much your agreement might cost overall. And don't worry – using the tool has no impact on your credit score.

Want to know more about credit scores and how to finance a car? Our insights and tips are full of detailed guides just like this one.