What credit score do I need for car finance?

7 min read

Updated: Nov 9, 2026

Written by

Joe Towner

Reviewed by

Amy Lancashire

There's no minimum credit score for car finance in the UK. Each lender sets its own criteria, so a score that gets you accepted by one lender might not be enough for another. In general, the higher your score, the more lenders are likely to accept you and the lower the APR you're likely to be offered.

Your score isn't the only thing that counts, though. Lenders look at your full credit report, your income and your regular outgoings before they decide. This guide explains what a good score looks like with each credit reference agency, what else lenders check and how to apply without damaging your credit file.

Is there a minimum credit score for car finance?

No. Lenders don't publish a minimum score, and there's no industry-wide cut-off. Each lender uses its own scoring system, built around the customers it wants to lend to. Mainstream lenders usually look for a strong credit history, while specialist lenders will focus on people with lower scores or a limited history and tend to charge more.

If someone tells you that you need a particular score, treat it as a rough guide rather than a rule.

What's a good credit score for car finance?

There's no single good score, because the 3 main UK credit reference agencies each use a different scale. A score in the good band with any of them suggests lenders might be more likely to lend to you. The higher your score, the more choice and the lower rates you're likely to be offered.

Bands from Experian, Equifax and TransUnion, checked in September 2026.

Two of these scales have changed recently:

• Experian moved from 0–999 to 0–1250, with a gradual rollout from November 2025. Experian says some banking apps still show the older 0–999 score.

• TransUnion is moving from 0–710 to 0–999, phased in from late September 2026 to June 2027. Until then, you might see your TransUnion score on either scale depending on where you check it. TransUnion says the change doesn't affect lender decisions.

So if you see an Experian score out of 999 or a TransUnion score out of 710, it's on the older scale. You can read more about each agency's bands in our guide to what counts as a good credit score.

Remember that the score you check is only a guide. Lenders use the information in your credit report and their own scoring, so a good score doesn't guarantee you'll be accepted.

What else do car finance lenders check?

Your credit history is only part of the decision. Under the FCA's creditworthiness rules, lenders must check both how likely you are to repay and whether you can afford the repayments without harming your finances.

That means lenders usually look at your:

• Income: how much you earn and how stable it is

• Regular outgoings: rent or mortgage, bills and other essential costs

• Existing debts: loans, credit cards and other finance, and what you pay towards them each month

• Employment: whether you're employed, self-employed or retired, and how secure your income is

• Address history: how long you've lived at your current address. Being registered to vote there helps lenders confirm who you are, so it's worth knowing how the electoral roll affects your credit score.

Some lenders also ask to see your bank transactions through Open Banking. This gives them a clearer picture of your income and spending, which can be useful if there isn't much on your credit file.

How much you borrow matters too. A bigger deposit or a cheaper car means a smaller amount of finance, which is more affordable.

Do HP and PCP need different credit scores?

There's no rule that says one needs a higher score than the other. Lenders set their own criteria for each type of finance, and they check your credit history and affordability for both.

The difference is in how the agreements work. With hire purchase (HP), you usually pay a deposit, then monthly payments that cover the rest of the car's price plus interest.

You own the car once you've made the final payment, which often includes a small 'option to purchase' fee. With personal contract purchase (PCP), your monthly payments are usually lower than with HP on the same car, because a large part of the car's value is left as an optional final payment. At the end, you can pay it and keep the car, hand the car back or put any equity towards a new deal.

With PCP, the lender sets a guaranteed future value for the car at the start and takes the risk if it's worth less at the end. Criteria for each type vary from lender to lender, so being turned down for one doesn't mean you'll be turned down for the other.

You can compare the two in our guide to the difference between HP and PCP, or read more about how PCP works. A personal loan is another way to pay for a car, and it works differently again. See personal loans vs car finance.

Can I get car finance with a low credit score?

It’s possible but you’ll likely have fewer options. Some lenders specialise in lending to people with lower scores, missed payments or defaults on their file. Their rates are usually higher, and they may lend less or ask for a bigger deposit.

Things that can improve your chances:

• A bigger deposit: you borrow less, so your monthly payments are lower and the finance may be easier to afford

• A cheaper car: a smaller amount of finance is easier to afford

• A guarantor or joint application: some lenders may accept a guarantor with a strong credit history, but many specialist lenders don't. Some offer joint applications instead.

• Time: missed payments and defaults have less impact as they get older

Be wary of anyone who promises guaranteed approval. Lenders have to check that you can afford the finance, so no genuine lender can promise to accept you before looking at your circumstances.

For more on where you stand, read what a bad credit score means and what adverse credit is. If you're in an Individual Voluntary Arrangement (IVA), see our guide to getting HP with an IVA.

Does applying for car finance affect my credit score?

Checking whether you're likely to be accepted doesn't, but a full application does.

• Soft search: used by eligibility checkers and for quotes. It shows on your credit report, but it doesn't affect your score.

• Hard search: made when you submit a full application. Other lenders can see it, and hard searches usually stay on your credit report for up to two years.

One hard search might not have a huge effect. Several in a short time can suggest to lenders that you're relying heavily on credit or having money problems.

Before you apply, check your eligibility with a soft search, and ask the dealer or broker what kind of search they'll run. You can read more about how soft credit checks work.

What can I do if I'm turned down for car finance?

There’s a few things to consider doing if you’re rejected for credit:

1. Check your credit report. Start with the agency the lender used, then check the other 2. Look for mistakes such as accounts you don't recognise, old addresses or payments marked as missed when they weren't. You can raise these with the agency or the lender. The agency will check with the lender, which has to agree to any change.

2. Consider delaying further applications. Each full application adds another hard search. Use a soft-search eligibility checker to see where you stand first.

3. Look at affordability. If your credit report looks fine, the lender may have decided the repayments were too high for your income. A cheaper car or a bigger deposit lowers the amount you need. A longer term lowers the monthly payment too, but you'll pay more interest overall.

Car finance credit score FAQs

There are a range of financial products available that may suit your needs. We encourage you to research your options carefully and consider seeking independent financial advice before making any decisions. This blog is for informational purposes only and does not constitute financial advice.