Discover the credit score you need for car finance and how it affects approval, rates, and loan terms.
If you’re looking into car finance, you might be wondering how much your credit score matters — and what score you need to get approved. Many people find credit scores confusing, but they don’t have to be a barrier to getting a car.
So, what credit score do you need for car finance? Join us as we explore what credit scores mean for car finance in the UK, how they’re checked, and what steps you can take to make sure you’re in the best position to get the deal you want.
Let’s make sense of it all so you can move one step closer to getting your new car.
There’s no set-in-stone credit score that you need in order to qualify for car finance in the UK, which can be a relief if you’re not sure where you stand. Different finance providers look at a variety of factors and often use their own criteria and credit reference agencies. That means scores can vary depending on who’s checking.
For the most part, finance providers want to see that you’re likely to keep up with repayments comfortably. So, they’ll look at a few key areas, like:
Credit history: A higher score can help, but it’s just one part of the picture.
Affordability: This takes into account your income against any regular expenses and outgoings.
Existing debt: Lenders may review any current repayments to understand how a new loan would fit around your existing financial commitments.
While a deep dive into your finances may seem daunting, it also means that even if your score isn’t perfect, you could still be eligible for car finance.
As we briefly mentioned earlier, different finance providers look at different credit reference agencies when deciding whether or not to approve a car finance application. However, each UK credit reference agency – Experian, TransUnion, and Equifax – has its own scoring system.
Knowing where you stand can certainly help when applying for car finance, as lenders use these scores as an indication of your financial health. Here’s a look at each agency’s scale:
Experian
961–999: Excellent
881–960: Good
721–880: Fair
561–720: Poor
0–560: Very Poor
TransUnion
628–710: Excellent
604–627: Good
566–603: Fair
551–565: Poor
0–550: Very Poor
Equifax
800–850: Excellent
740–799: Very Good
670–739: Good
580–669: Fair
300–579: Poor
These ratings are there to give a snapshot of where your finances stand, but remember, no single score can make or break your car finance options. Any lender you choose will take a broader look at your finances, so if your score isn’t ideal, you may still have paths to approval.
There’s no two ways about it, your credit score does play a big role in car finance decisions, but it’s just one piece of a larger puzzle. Lenders use it to help gauge how likely you are to keep up with payments, but it’s not the only thing they look at. However, a higher score tends to give lenders more confidence, which will usually mean better finance options and terms.
Credit reference agencies like Experian, TransUnion and Equifax gather data on things like your payment history, past credit agreements and outstanding debts. A solid score often signals that you’re likely to keep up with repayments.
But don’t stress if your score isn’t perfect. Lenders also consider factors like your income, monthly expenses and any current financial commitments to get a more complete picture. Even with a less-than-ideal score, a steady income and a strong payment history can still help you secure car finance that works for you.
You can easily check your credit score with one of the UK’s main credit reference agencies, Equifax, Experian or TransUnion. Signing up with any of these agencies gives you access to a three-digit score, which offers insight into how lenders may view your creditworthiness. Just provide a few basic details, and you’ll be able to look at your credit health.
Regularly checking your score is a great habit, as it helps you keep track of any changes and stay well-prepared for future finance applications.
Improving your credit score can make a real difference in securing better terms when you need to finance a car purchase. Here are some simple steps to help boost your score and show lenders you’re a reliable borrower.
✔ Register on the electoral register
Registering to vote at your current address is a quick and easy way to confirm your identity and establish your residence, which many lenders value.
✔ Keep credit utilisation low
Aim to use no more than 30% of your available credit (ideally around 25%) to show that you’re responsible when it comes to borrowing. This helps to demonstrate you’re not overly reliant on credit.
✔ Make payments on time
Consistently paying your bills on time is one of the most important things you can do. It shows lenders you’re reliable with repayments and can significantly improve your credit score over time.
✔ Clear credit card balances monthly
If you can, paying off your credit card in full each month is best. But if that’s not possible, always make at least the minimum payment to avoid penalties.
✔ Limit address changes
Staying at the same address for longer periods can boost your score simply by showing stability. Frequent moves can look like a potential risk to some lenders.
If you’d like more ways to keep your credit score moving in the right direction, check out our full guide to improving your credit score.
Can you get car finance with bad credit?
Absolutely, you can still get car finance even if your credit score isn’t where you’d like it to be. The truth is, some lenders specialise in helping people with less-than-perfect credit histories. Just keep in mind that these deals may come with higher costs, but there are ways to make things more affordable.
Go for a cheaper car
Picking a less expensive car means you won’t need to borrow as much. Less money borrowed means lower monthly payments, so it’s easier to manage your budget.
Choose a longer term
Spreading your payments over a longer period of time can bring down your monthly costs, which is helpful if you’re keeping a close eye on spending. Just remember, a longer term might mean paying more in interest overall.
Put down a bigger deposit
If you’ve got some savings, putting down a bigger deposit can really help. It reduces the amount you need to borrow, so your payments, and interest, will be lower.
Get a guarantor
If you have someone you trust who’s willing to back you up, like a family member with good credit, a guarantor can boost your chances of getting approved. Plus, it might even mean you’re able to secure better terms from the lender.
Thinking about your next set of wheels?
Remember, when it comes to getting car finance in the UK, there’s no fixed credit score requirement that guarantees approval. A higher credit score will definitely help, as it shows lenders you’re a lower risk, but even if your score isn’t where you’d like it to be, you’ve still got plenty of options to buy that car you’ve had your eye on.
If you’re worried about your credit score, making smart financial moves — like paying bills on time and managing credit responsibly — can make a real difference.
