Hippo Motor Finance > FAQs > Bad credit and credit scores

What is a credit score?

A credit score is a number rating that helps finance companies decide how much of a risk it is to loan you money. The number is calculated by credit reference agencies and is mainly based upon your credit report and history of lending.

5 reasons you were refused and what to do next

What's a good credit score to finance a car?

There's no magic number that you need to hit to get accepted for car finance. While your credit score plays a part, lender criteria and your current circumstances play a part. However, it is advisable to improve your credit score as much as you can.

What's a good credit score for a car loan?

How do I check my score before I apply?

Free services include: Money Saving Expert Credit Club, who use Experian; ClearScore, who use Equifax; and Credit Karma, who use reports from TransUnion. You can usually get a free monthly subscription with one of the main three lenders (Equifax, TransUnion, Experian), but you'll probably be charged after the first month if you don't cancel.

How do I check my credit score before I apply for a car loan?

Will you do a credit check at any point?

We’ll do a hard credit check when your finance application is being considered, but you can do a soft credit check at the start of your application to determine whether you’re preapproved. The initial soft credit search has no impact on your credit score.

What credit checks are done for car finance?

What’s the difference between a hard search and a soft search?

A soft search is a surface look at your credit profile which doesn’t affect your credit score. A hard search is an in-depth look at your credit profile which does affect your credit score.

Use our free soft search and find out if you're preapproved

Can you guarantee credit acceptance?

Unfortunately, we can’t guarantee you’ll be accepted. Each lender has different criteria, and everyone’s credit profile is different. We advise you’re always wary of companies that say you’ll be accepted no matter what.

Can I get car finance if I've made late payments?

I’ve been turned away for credit elsewhere. Can I get finance with you?

It depends on the time scale from when you were last turned down and why you were refused. If your circumstances have changed, there’s a chance you could be accepted this time around. However, if your circumstances haven’t changed or not enough time has passed, it’s unlikely you’ll be accepted for car finance

5 reasons you were refused and what to do next

I have bad credit. Can I get car finance?

Yes, even if you have bad credit, you may still be able to get car finance. We work with lenders who specialise in helping those with less than perfect credit. However, if you’ve recently been refused credit, it may be worth looking at other options.

How to qualify for a car loan with bad credit

I have an IVA/CCJ. Can I get car finance?

Yes, it is possible to get car finance with an IVA or CCJ, but we can’t guarantee anything. We work with specialist lenders who help people from diverse credit backgrounds. It’s easy to find out if you’ll be approved without it affecting your credit score.

Can I get car finance with an IVA or CCJ?

I’ve been bankrupt before, can I get car finance?

Hippo Motor Finance works with lenders who offer car finance deals for those who’ve declared bankruptcy in the past. There’s no guarantee of acceptance, but there’s a guarantee of consideration.

Can I get car finance after bankruptcy?

I have a default. Will I be accepted for car finance?

While it’s certainly harder to get car finance with a default, it’s not impossible. By understanding how a default affects your ability to get credit, you may be able to limit the impact and take action to make getting car finance a little easier.

Can I get car finance with a default?

I've made late payments, will I get accepted for car finance?

You can get credit score if you've made late payments, but it depends on various factors like frequency, timing and lender criteria.

Can I get car finance if I've made late payments?

Can I get car finance with a DRO (Debt Relief Order)?

It depends on what stage you're at in your DRO. During the first year of your DRO, you’re not allowed to take out credit worth more than £500 without first gaining permission from the receiver. After your DRO is over it stays on your credit file and will impact the lender’s decision whether to approve your application for car finance. In specialist circumstances like these, we would recommend speaking to one of our advisers. Do DROs affect your ability to get car finance?

Can I get car finance with a DMP (Debt Management Plan)?

It depends on the terms of your DMP, as some may state you can’t borrow more money until the plan is finished. However, car finance is often looked at as an essential, particularly when you need the car for work, so it’s worth checking with your provider. Also, affordability is key here and you need to prove you can keep up with payments on your vehicles. Do DMPs affect your ability to get car finance?