Representative example: borrowing £7,000 over 5 years with a representative APR of 21.9%, the annual interest rate of 21.9% (Fixed) and a deposit of £0.00, the monthly would be £178.52, with a total cost of credit of £3711.20 and a total amount payable of £10,711.20. Rates may differ as they are dependent on individual circumstances'. Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status. Quick Car Finance are a broker not a lender.
Car finance lenders have various terms and conditions for their agreements
- Poor credit history
- Alternative options
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What is RCF?
Refused car finance is when you apply for a car loan or car finance, but your application is rejected by the lender. This means that you are not approved to borrow the money needed to purchase the car you want. Car finance can be a helpful way to spread the cost of a car over a longer period of time, making it more affordable for people. However, lenders have certain criteria that you need to meet in order to be approved for car finance. This may include things like your credit score, employment status, and income.
- Cost of the vehicle Financing a car from £4,000 - £25,000
- Mileage A maximum of 120,000 miles on the vehicle
- Vehicle's age The vehicle must be no older than 15 years old at end of agreement
People get refused car finance more than you think
- Poor credit history
- Every lender will run a credit check on someone when they apply for car finance. If you have a bad credit score, you can be refused by some lenders as you may be unable to pay back the loan.
- If you are unemployed, this could affect a lenders confidence in you to repay the loan. Some lenders won’t cater to self employed people due to their income being inconsistant.
- Sometimes people may look to finance a car or vehicle that they simply can’t afford. Lenders will become aware of this through their soft credit check they perform and will refuse if they don’t or can’t afford the monthly repayments. Some lenders also can refuse car finance if the customer is unable to provide an upfront downpayment for the vehicle.
If you have been refused in the past
- Timing Leaving longer times between applications helps with acceptance
- Credit score Improving your credit score will help with potential lenders
- Alternative There's aways the option of finding a cheaper, alternative vehicle
What to do if my car finance application was refused?
- Find out why you were refused car finance
- This first step will make you aware of why your car finance application was refused and will help you understand the factors that contributed to the refusal. You can then see what you need to do to improve your chances in the future.
- Check your credit report
- You should check your credit report to see if there are any errors or issues that could be affecting your credit score. You can dispute any errors and take steps to improve your credit score, such as paying bills on time or reducing your debt.
- Consider alternative options
- If you are unable to get car finance, you should consider alternative options such as finding a cheaper car, saving up for a down payment or looking for lenders that specialise in lending to people with poor credit
- Seek professional advice
- You can seek advice from credit counselors or financial advisers who can provide you with some guidance on how to improve your financial situation and increase your chances of being approved for car finance in the future.
- Try again in the future
- If you are refused car finance, it's important not to give up. You can take steps to improve your credit score and financial situation, and try again in the future. With a better credit score and financial history, you may be able to get approved for car finance with more favorable terms.
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Refused Car Finance FAQs
- Can I get a car on finance if I'm self-employed?
Yes, it is possible to finance a car through your business. This is commonly done through a business car loan or a business car lease. It's important to note that the availability of business car finance options and the specific terms may vary depending on your business structure (e.g., sole proprietorship, partnership, limited company) and the lender's policies. When financing a car through your business, you'll typically need to provide financial documentation for the business, such as profit and loss statements, bank statements, and potentially business tax returns. Additionally, the car may need to be registered in the name of the business.
- Can you put car finance through your business?
Yes, being self-employed can potentially impact your credit score, but it's important to understand how: Income Reporting: When you're self-employed, your income may be less predictable or consistent compared to traditional employment. Lenders may consider this when assessing your creditworthiness. Verification of Income: Lenders may require additional documentation to verify your income, such as tax returns, business financial statements, or bank statements. In some cases, this process may be more detailed than for salaried employees. Impact on Creditworthiness: The effect on your credit score will depend on how well you manage your finances and meet your financial obligations. Timely payments on loans, credit cards, and other debts will have a positive impact on your credit score, regardless of employment status.
- Can you get finance without payslips?
Yes, it is possible to get finance without payslips, especially if you're self-employed or have alternative sources of income. However, not having payslips may make the application process more complex, as lenders typically use payslips to verify income for traditional employees. If you don't have payslips, you may need to provide alternative documentation to demonstrate your income and financial stability. This could include: Bank Statements: Providing several months' worth of bank statements can show a steady income flow. Tax Returns: For self-employed individuals, tax returns can be a crucial document to verify income. Business Financial Statements: If you own a business, providing financial statements can help prove your income. Other Sources of Income: If you have income from sources other than traditional employment, such as rental income, investments, or freelance work, you should disclose and document these. Proof of Benefits or Pension: If applicable, documentation of government benefits or pension income can be used to support your application. Letter from an Accountant or Financial Advisor: A professional letter attesting to your income and financial stability may also be accepted. It's important to note that not all lenders may accept alternative income documentation, and they may have specific requirements. If you're applying for finance without payslips, it's advisable to discuss your situation with the lender or seek advice from a financial advisor who can help guide you through the application process.