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How to secure a bad credit car loan when you’ve been refused.

If you’ve already been refused a car loan, you may be wondering what your chances are of ever getting approved. The first thing you should do is stop making any new applications. Making multiple application for a loan in a short space of time can have a further negative impact on an already low score. You should instead work on your credit score, and you can take the below points into consideration to help improve your future chances of getting a loan.


Check the lenders criteria.

Before you start making applications, you can check what the lender looks for in the ideal candidate. Whilst credit score can be important, some lenders may focus on affordability and proving your income instead. You could either ask the lender what their lending criteria is or use a free soft search eligibility checker for car finance to see the likelihood of being approved first.

Find bad credit lenders.

If you’ve been refused a car loan it may be because you have applied with the wrong lender. Prime lenders or banks usually only offer their low rates and loans to the customers who are less of a risk. You could improve your chances of getting a car loan with bad credit by applying with a lender who specializes in poor credit car finance. If you don’t know where to start, you could consider using a finance broker to help you find the right lender. Brokers are usually free to use and have a range of lenders on their panel to help find you the best finance deal.

Save for a deposit.

A car finance deposit can be required for some agreements, but many allow you to finance a car with no deposit to pay. It can be worth considering saving up some money to put towards you next car though as it helps to reduce the loan amount. A smaller loan can be more manageable and means the finance provider doesn’t have to lend out as much. This lessens the risk and could help you to get approved.

Choose a cheaper car.

A cheaper car means a cheaper loan and just like lowering the loan amount with deposit, a smaller loan can be better. You may have more chances of securing finance for a used car than you would for a brand-new car when you have bad credit.

Reduce your debt first.

It can be harder to get approved for finance when you already have a lot of other debt to pay back. Your credit score can also be negatively affected if you’re using too much of your available credit. Before trying to take on another loan, you should clear as much of your debt as you can first. The golden rule to a better credit score is only using around 30% of your available credit limit at a time on your accounts.

Create new financial habits.

Rebuilding a bad credit score is the best way to increase your chances of getting approved. In order to better your credit, you will need to create new, financial habits. Making any current repayments you owe on time and in full can help to improve your credit score. Showing future lenders, you can be trusted to pay back your loan on time and in full starts now and creating new behaviors can put you in a better financial position.

Be realistic.

Getting your personal finances in order should always be a priority and no matter how much you want to get a car, you need to think whether it’s a good financial decision for you. Taking on too much credit can be risky and if your personal circumstances change such as losing your job, you may not be able to afford finance anymore. Lenders do put checks in place to make sure you’re a suitable candidate for finance, but you should also assess whether its right for you before signing on the dotted line.


Welcome to the Night Helper Blog. The Night Helper Blog was created in 2008. Since then we have been blessed to partner with many well-known Brands like Best Buy, Fisher Price, Toys "R" US., Hasbro, Disney, Teleflora, ClearCorrect, Radio Shack, VTech, KIA Motor, MAZDA and many other great brands. We have three awesome children, plus four adorable very active grandkids. From time to time they too are contributors to the Night Helper Blog. We enjoy reading, listening to music, entertaining, travel, movies, and of course blogging.

11 thoughts on “How to secure a bad credit car loan when you’ve been refused.

  • I remember having to buy a car after claiming bankruptcy. It wasn’t easy but I got approved. I had a high interest rate though which wasn’t good. But I eventually got everything back in order.

  • I love that you added be realistic. That’s a super important point!

  • These are good tips to consider when trying to secure a car loan while having bad credit! I like that there are a lot of practical solutions, like saving for a down payment and shooting for a cheaper car.

  • love these tips.. we always tend to go for used cars for we find the value there is way higher..

  • It is so smart to check out the different lenders criteria, before you sign on the dotting line. Also saving for a down payment is worth the weight in gold to reduce your payment is a good thing.

  • Good tips! I hope I never need to use these. I usually put a large deposit down & that helps!

  • Thank you for such detailed guidance on securing a car loan with bad credit! The idea of focusing on improving my credit score and understanding the importance of a deposit makes so much sense!

  • I agree that saving money for a downpayment is helpful when getting a car. It helps make the payments smaller too.

  • The tip about checking lenders’ criteria is so smart—understanding what they’re looking for makes a world of difference.

  • This is some great info for those with bad credit. I know it can be tricky getting a car when you have it.

  • These are all some really good ideas. I know it can be tough if you have bad credit. Keep working on it and it will eventually get better.


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