What Credit Score Is Needed to Buy a Car UK

Find out what credit score you need to buy a car in the UK and how to improve your chances of getting approved for car finance

What Credit Score Is Needed to Buy a Car

Buying a car on finance is one of the most common credit agreements people enter into in the UK, whether it's through Personal Contract Purchase (PCP), Hire Purchase (HP) or a personal loan. But what credit score do you actually need to buy a car? The answer isn’t black and white — lenders assess more than just your score — but understanding where your credit rating stands can help you plan and improve your chances of approval.

In this article, we’ll explore the credit score requirements for car finance, how lenders assess applications, what types of finance are available, and how to increase your chances of getting accepted for a car loan in the UK.

Is There a Minimum Credit Score to Buy a Car

There is no official minimum credit score required to buy a car in the UK. Each lender uses its own criteria and scoring system, and credit reference agencies (Experian, Equifax and TransUnion) all calculate your score differently.

However, your score will generally influence:

  • Whether you’re approved for finance

  • The type of finance you’re offered

  • The interest rate applied to your loan

  • How much you can borrow

That said, people with poor or fair scores are often still able to get car finance — though they may pay more in interest or be asked for a larger deposit.

How Credit Scores Are Categorised

To give a rough idea of how scores relate to lending decisions, here’s how the UK’s three major credit reference agencies group credit scores:

Experian (0 to 999):

  • 961–999: Excellent

  • 881–960: Good

  • 721–880: Fair

  • 561–720: Poor

  • 0–560: Very Poor

Equifax (0 to 1000):

  • 811–1000: Excellent

  • 671–810: Good

  • 531–670: Fair

  • 439–530: Poor

  • 0–438: Very Poor

TransUnion (0 to 710):

  • 628–710: Excellent

  • 604–627: Good

  • 566–603: Fair

  • 561–565: Poor

  • 0–560: Very Poor

If your score falls into the Good or Excellent range, you’ll typically qualify for lower interest rates and better deals. If your score is Fair or Poor, you may still be approved — but the terms will likely be less favourable.

What Types of Car Finance Are Available

The type of finance you choose may also affect the credit score requirements:

1. Personal Contract Purchase (PCP)

  • Popular option with lower monthly payments

  • Requires good credit for the best rates

  • Option to buy the car at the end or return it

2. Hire Purchase (HP)

  • Spread the full cost over monthly payments

  • You own the car after the final payment

  • More accessible to those with fair or poor credit

3. Personal Loan

  • Borrow a fixed amount and pay it off monthly

  • No deposit needed

  • Works well for people with good to excellent credit

4. Guarantor Loans

  • Ideal for applicants with poor credit

  • Requires someone with good credit to co-sign

  • Higher interest and more risk involved

5. Bad Credit Car Finance

  • Tailored for those with low scores or CCJs

  • Comes with higher interest and stricter terms

  • Often requires proof of income and affordability checks

What Else Do Lenders Look At Besides Credit Score

While your score is important, it’s not the only thing lenders consider. They also assess:

  • Income and employment status

  • Existing debts and financial commitments

  • Electoral roll registration

  • Bank statements or proof of affordability

  • Deposit amount

  • Past defaults, CCJs or missed payments

Even with a lower score, if you can prove you’re able to make the monthly payments reliably, some lenders may still approve you.

Real-World Example

Amy has a credit score of 940 with Experian (Good). She applies for a PCP deal on a £14,000 car and is offered a 4.5 percent APR with no deposit. Her strong score and steady income helped her qualify for one of the best rates available.

Mike, on the other hand, has a score of 580 (Poor). He applies for a similar vehicle but is offered HP with a 19.9 percent APR and is required to put down a £1,500 deposit. Despite his credit history, he’s still able to secure finance due to his full-time employment and clean bank statements over the past six months.

Can You Buy a Car with No Credit History

Yes, but it’s more challenging. Having no credit history means lenders can’t assess how you manage borrowing, which makes you a higher risk in their eyes. You may still be approved through:

  • Specialist lenders offering first-time buyer car finance

  • Guarantor finance agreements

  • Putting down a larger deposit

  • Starting with a smaller loan or cheaper car

Building your credit over time — by using a credit-builder card or setting up household bills in your name — can help improve future finance options.

Tips to Improve Your Chances of Getting Car Finance

  • Register on the electoral roll to verify your identity and address

  • Check your credit report for errors or outdated information

  • Pay off or reduce existing debts before applying

  • Avoid multiple finance applications within a short time frame

  • Provide a deposit to reduce the amount you need to borrow

  • Use a finance broker to compare lenders and match you to the right deal

  • Build a budget and only apply for what you can realistically afford

Final Thought

There’s no fixed credit score needed to buy a car in the UK, but the higher your score, the better the terms you're likely to receive. Lenders look at your entire financial picture — not just the number — so even with fair or poor credit, car finance is still possible.

If you're unsure where you stand, check your credit score with a free service like Credit Karma, ClearScore or Experian. From there, you can make informed choices, strengthen your profile and drive away with a deal that suits your budget and credit status.