What can cause bad credit?
Bad credit can develop for a range of reasons. It often reflects past financial difficulties rather than your current situation.
- Missed or late payments on credit agreements
- Defaults on loans, credit cards, or finance agreements
- County Court Judgments (CCJs)
- High levels of outstanding or unmanaged debt
- Limited or inconsistent credit history
How long does bad credit last?
Most negative information remains on your credit file for up to six years from the date it was recorded.
While this information stays visible, its impact can reduce over time if your recent financial behaviour improves.
How does bad credit affect car finance?
Some mainstream lenders may decline applications from people with bad credit. This is often due to stricter lending criteria.
However, specialist lenders may assess applications differently, focusing more on affordability, income stability, and recent payment behaviour.
Can bad credit be improved?
Yes — improving your credit usually involves demonstrating responsible financial behaviour over time.
This may include making payments on time, reducing outstanding balances, and avoiding multiple credit applications.
Check your car finance options
Even with bad credit, there may be car finance options available depending on your circumstances.
Apply now