There’s no single credit score you need to get car finance. Lenders don’t see the score you see in a credit app. They look at the information on your credit file and score it themselves, alongside affordability and the deal you’re asking for. This guide explains what lenders actually look at, how searches work, and how to improve your chances.
In short
There’s no minimum credit score for car finance. Each lender uses its own scoring, based on your credit file from one or more of the three credit reference agencies: Experian, Equifax and TransUnion. A better credit history usually means more choice and lower rates, but people with poor credit can still be accepted, often at a higher APR.
Why there’s no magic number
The score you see from a credit reference agency or a credit app is a guide to how lenders might view you. Each agency uses its own scale, so the same person can have very different numbers from each.
Lenders don’t use these scores. They build their own scorecard from the data on your credit file, plus what you tell them on the application, and they decide what they’re willing to accept. That’s why one lender can turn you down and another accept you on the same day.
The three credit reference agencies
In the UK, there are three main credit reference agencies:
- Experian
- Equifax
- TransUnion
Most lenders check one or two of them, and they don’t all hold exactly the same information. You have a legal right to see your credit file from each agency, and each one offers a free way to view it, either directly or through a partner app. Check all three before you apply.
What lenders look at on your file
| On your credit file | Why it matters |
|---|---|
| Payment history | Missed or late payments are the strongest warning sign |
| Defaults and CCJs | Serious problems, which stay on your file for six years |
| How much you owe | High balances compared to your limits can count against you |
| Recent applications | Several hard searches in a short time can suggest you’re struggling |
| Electoral roll | Being registered helps confirm your identity and address |
| Financial links | A joint account links you to the other person’s file |
| Length of history | A longer record of managing credit well helps |
Lenders also check affordability: whether you can afford the payments on top of your other spending. A good credit history won’t help if the payments don’t fit your budget.
Soft searches vs hard searches
- Soft search: used by eligibility checkers and many quote tools. Only you can see it, and it doesn’t affect your score.
- Hard search: made when you fully apply. Other lenders can see it, usually for 12 months.
One or two hard searches are normal when you’re looking for finance. Several in a short time can make lenders cautious. Use soft searches to compare first, and only apply when you’re ready.
Why this matters
Before you fully apply, ask whether the quote uses a soft or hard search. A dealer or broker should be able to tell you.
How to improve your chances
- Check all three credit files and get mistakes corrected. Each agency has a process for disputing errors.
- Register on the electoral roll at your current address.
- Pay everything on time, including phone contracts and utility bills, which can appear on your file.
- Reduce your credit card balances if you can, especially if you’re close to your limits.
- Space out applications. Avoid applying for other credit in the months before you apply for car finance.
- Break financial links with people you no longer share finances with, by asking the agencies to remove the link.
- Save a deposit. A bigger deposit means the lender is lending less against the car.
Improvements can take a few months to show on your file, so start early if you can.
If your credit history isn’t perfect
You can still get car finance with a poor credit history, but you’ll usually have fewer lenders to choose from and pay a higher rate. See our guides to bad credit car finance, car finance with defaults, with a CCJ and with no credit history.
If you’ve been turned down, see refused car finance.
Credit score FAQs
What credit score do I need for car finance?
There isn’t a set score. Each lender has its own criteria and scores your credit file its own way. A good history gives you more choice and lower rates, but you can still be accepted with a lower score.
Does a car finance quote affect my credit score?
Not if it uses a soft search. A full application leaves a hard search that other lenders can see.
Which credit score do car finance lenders use?
None of the scores you see. They use the data on your credit file, usually from one or two of Experian, Equifax and TransUnion, and their own scoring.
Will car finance improve my credit score?
Making every payment on time builds a positive record on your credit file, which can help with future borrowing. Missed payments harm it.
How long do missed payments stay on my credit file?
Late payments, defaults and CCJs usually stay on your credit file for six years, although their effect fades over time if you manage credit well.