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Best Car Finance Options for Bad Credit in 2026
Explore top car finance picks tailored for those with bad credit
Quick Picks
Best for bad credit: Moneybarn Car Finance.
Best for used cars: Oodle Car Finance.
Best established lender: Black Horse Car Finance.
Top Picks for Bad Credit
Finding car finance with bad credit can feel like climbing a steep hill. However, options exist that cater specifically to those with less-than-perfect credit scores. Here are our top recommendations for car finance providers that offer favorable terms for individuals with bad credit.
Moneybarn Car Finance for Poor Credit
Moneybarn Car Finance specializes in bad credit car finance, with a representative APR of 30.7%. It's one of the few options that consider applicants with poor credit histories. While the rates can be steep, reaching up to 69.9% APR for the poorest credit profiles, Moneybarn is a viable choice for those who've struggled to secure financing elsewhere. Their focus on Hire Purchase agreements means you own the car at the end, which could be a significant advantage for budget-conscious buyers.
Oodle Car Finance
Oodle Car Finance offers a quick and straightforward application process, ideal for used car buyers. With soft credit checks and no deposit required, it's accessible even if your credit isn't perfect. However, the limitation to Hire Purchase and potential for higher rates with lower credit scores should be considered if flexibility is a priority.
Black Horse Car Finance
Black Horse Car Finance, part of Lloyds Banking Group, provides competitive rates starting at 4.9% APR. It's a solid choice for those buying through dealerships. Although only available through dealerships, the backing of a major bank offers reliability. Rates depend on the dealer relationship, which can be a downside for those seeking direct control over terms.
When bad credit narrows your options, it's essential to weigh the cost against the benefits. While Moneybarn provides a crucial service for those with poor credit, Oodle's lack of deposit requirements might appeal more if upfront costs are an issue. Now, let's move on to lenders that operate through dealer networks, offering competitive options for those who prefer traditional routes.
Dealer Network Picks
Next, we explore options that leverage dealer networks for financing, a route that often provides the security of established lenders.
Close Brothers Motor Finance
Close Brothers Motor Finance, with over 150 years of experience, offers both HP and PCP through a vast dealer network. While rates vary by dealer margin, the network's size means competitive options are likely. This pick suits those who value stability and a long-standing reputation.
MotoNovo Finance
MotoNovo Finance provides flexible HP and PCP terms through over 4,000 dealerships. Quick decision processes and competitive rates from 5.9% APR make it a strong contender. However, like others in this category, direct applications aren't available, which could limit flexibility for some buyers.
Dealer network options like Close Brothers and MotoNovo offer security and ease, but if you're looking for more flexibility or direct control, they might not hit the mark. For a deeper dive into the myths and realities of car finance, our related article Debunking Car Finance Myths: What You Need to Know could provide valuable insights.
