The Car Loan Warehouse | Refused Car Finance: What Next?

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Refused Car Finance: What Next?

March 23, 2016

If you’ve been refused car finance, you might be thinking you’re almost out of options – but the happy truth is that your past refusals don’t need to dictate your ability to obtain credit in the future. Thanks to the flexibility of car finance, bad credit holders can still buy the car they want at a rate they can afford – regardless of their financial history and any rejected applications.

First, we’ll take a look at the reasons you may have been rejected last time you applied – then we’ll arm you with all the information you need to find the best deal available.


Reasons for being refused car finance

  • A poor credit score: while your previous financial troubles don’t have to ruin your chances of acceptance, certain ‘black marks’ on your credit report can stick around for longer than others. For example, missed credit repayments will remain on record for three years – while CCJs and bankruptcy can stain your report for up to six years
  • Too many searches: each time a lender views your credit report, they leave a ‘footprint’ – and too many of these in a short space of time can make a bad impression with future lenders, making it important to apply selectively
  • You don’t fit lender criteria: different lenders have different borrower ‘profiles’ – and it’s possible that you were refused car finance simply because you don’t fit theirs. As frustrating as this may be, lenders are often looking for a specific type of applicant – and in some cases, you simply won’t fulfil their unique criteria
  • You’re not on the electoral role: one of the most common and, thankfully, easily avoided reasons for being rejected is that you aren’t on the electoral register. Being registered verifies your identity and your address – information lenders need to determine your suitability
  • No history of borrowing: a track record for borrowing and repaying on time is highly beneficial – giving lenders peace of mind that you’re a responsible and conscientious borrower. For this reason, a blank slate can actually work against you – so it’s recommended that you take simple, logical steps to build a credit history that reflects well on your ability to repay your debts

0% car finance

Many poor credit holders have seen ‘interest free car finance’ advertised and are on the hunt for such a deal of their own. Unfortunately, 0% car finance deals are something of a myth – as the interest is always built into the cost of the car. For this reason, car finance calculators can provide valuable insight on the monthly instalments you can expect depending on the kind of loan you’re looking for – with complete transparency in terms of APR rates and total repayments.

The same is true of ‘guaranteed car finance’: an empty buzzword commonly used by brokers eager to exploit financially vulnerable applicants. Companies advertising guaranteed acceptance are projecting a false image of your chances – when in fact, acceptance hinges on a variety of individual factors and therefore cannot be guaranteed. Put simply, it sounds too good to be true because it is.

Find out more about guaranteed’ car finance deals.

Bad credit car finance

Being refused car finance in the past doesn’t mean you’ve got no chance of being accepted in the future. Many lenders are willing and able to offer bad credit car finance deals to applicants who’ve been rejected previously – and brokers are in an ideal position to arrange car finance for bad credit holders, thanks to working with a panel of the UK’s most reputable lenders.

A poor credit rating can impact your APR rate (and therefore your monthly repayments), as applicants with a history of financial troubles are considered by lenders to be ‘high-risk’ – but this score doesn’t have to dictate your chances of acceptance. As long as you can comfortably afford your monthly payments, bad credit car finance can be yours.



Whether your financial history is less than perfect or you’ve made a series of unsuccessful applications in the past, there’s hope for you yet. Being refused car finance isn’t the end of the road with The Car Loan Warehouse – where you’ll get access to many of the UK’s leading lenders, for the best chance of acceptance this time around.

For a bad credit car finance deal that suits your budget, apply online today and one of our advisor’s will come back to you with a decision within the hour.
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About The Author

Jon Le Roux is co-founder and company director of The Car Loan Warehouse. Being a mad engineering and motorsport enthusiast, I spend more hours than is healthy, watching, reading or talking about cars, boats, motorbikes…..basically anything with an engine.