Getting a loan when you have a poor credit rating
Getting a loan when you have a poor credit rating can be a challenge, but all is not lost –
Compare car loans
- Check your eligibility from a range of loan providers
- Apply today and borrow between £1,000 and £50,000
Why compare car loans
Find out which loans you are eligible for without harming your credit score and apply online.
You can compare car loans from the UK's biggest brands
Compare loans in 3 easy steps
Provide information
Enter a few details about what you are looking for.
Compare quotes
Save money by comparing instant quotes online.
Apply online
You can then apply online and your application will be processed directly by the loan provider.
What is a car loan?
A car loan is a type of personal loan used to purchase a vehicle. Most are unsecured, which means you borrow a fixed amount and repay it in monthly instalments over an agreed period — usually between 1 and 7 years.
Unlike dealer finance or hire purchase, an unsecured car loan lets you own the vehicle outright from day one, with no ties to the lender.
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What can I use a car loan for?
You can use a personal loan to finance:
A new or used car from a dealer
A vehicle bought privately or at auction
A car for commuting, family, or leisure use
Insurance, maintenance or road tax (as part of the total loan amount)
All loans must be for personal use — not for commercial or business vehicles.
What to consider before applying for a car loan
Total repayment cost
A longer loan term may lower monthly repayments but increase the total interest paid over time.
Affordability
Can you keep up with repayments now and if your circumstances change?
Early repayment terms
Some lenders charge a fee for paying off your loan early.
Overall debt
Consider how a new loan fits with your other financial commitments.
Drive away with the right car loan
Looking for a smarter way to finance your next car? Whether you're buying new or used, from a dealership or a private seller, a personal car loan can help you spread the cost with fixed monthly payments that work for your budget.
At MoneySpider, we help you compare competitive car loans quickly and easily — so you can get on the road sooner.
Buying smart: balancing cost and value
A car is often one of the biggest purchases you’ll make, so it pays to take your time. Think beyond the sticker price and factor in running costs such as insurance, tax, fuel, and servicing.
If you’re buying from a dealer, they may offer finance, but it’s worth comparing the full market to see if you can find a lower interest rate or better repayment terms elsewhere. Knowing your budget in advance gives you more confidence, and more room to negotiate.
FAQ
Need more help?
Can I get a car loan before choosing a car?
Yes, many people get pre-approved for a loan so they know their budget before shopping. Once approved, you can use the funds to buy the car that suits you.
Will applying for a car loan affect my credit score?
Comparing car loans through MoneySpider won’t affect your credit score, as we use a soft search. If you choose to go ahead and apply with a lender, they may carry out a hard credit check.
Is a personal loan better than dealer finance?
It depends on your needs. A personal loan usually gives you full ownership from the start and may offer more flexibility. Dealer finance might include incentives but could have restrictions or balloon payments. Always compare the total cost.
Can I repay my car loan early?
Some lenders allow early repayment without penalty, while others may charge a fee. Always check the terms and conditions before signing up.
What happens if I miss a repayment?
Missing a payment can affect your credit score and may lead to additional charges. If you’re struggling, contact your lender as early as possible to discuss your options.
Helpful guides & articles
How to choose the right type of loan
Choosing the right type of loan is a critical financial decision that can significantly impact your financial well-being.
The pros and cons of secured vs. unsecured loans
When you’re in need of financial assistance, loans can be a valuable resource. However, before you borrow, it’s essential to
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured against it.
