• Van Finance for Bad Credit - Plans For Poor Credit History
  • Van Finance for Bad Credit - Plans For Poor Credit History

Van Finance for Bad Credit - Plans For Poor Credit History

Discover your van finance options if you have a poor credit score

If you have a history of bad credit or currently have a poor credit score, then you’ll want to understand the options available to you when it comes to accessing van finance deals 

While the odds can feel against you, it’s important to remember that it is still possible to be approved by a lender for bad credit van finance, even if you don’t have the best credit history. 

In this dedicated van finance for bad credit article, we answer the most asked questions on the subject, as well as steer you in the right direction when it comes to finding a loan or finance deals with bad or poor credit history. 

finance bad credit

Is it hard to get finance on a van?

In short, no. The process of applying for van finance is very similar to applying for a credit card or loan - assuming you have a decent credit score that is. If not, the process may not be as straightforward, but as we discuss below, is still very much achievable.  

When you first apply for van finance, the associated lender has a duty to check your credit history to understand if you are a safe or risky choice for them. Depending on the cost of the van against the finance required, will help determine your repayments for each month, and over what set period of time.

Are you self-employed and need van finance for business? Then take a look at our Van Finance for Self-Employed guide where we answer all of your sole trader related finance questions.   

What credit score is needed to buy a van?

The better your credit score, the higher the chance you have of securing van finance. To give you an idea of what score lenders are after, we consulted Investopedia - a leading source of financial advice - which suggests a rating of 661 and above to secure finance at a competitive rate. 

However, it’s worth noting that each finance agency scores in a slightly different manner; for example, what’s classed as a GOOD, may in fact warrant an EXCELLENT score by a competitor. To give you a better insight into these scores, read on to consult our credit reference agency score table.

car finance bad score

How to determine your credit score

Are you unsure what your credit score is? Or are you up to speed with it? If it’s the latter, then your best bet is to consult an approved online free credit check website, such as Experian. Here you’ll have the opportunity to access a credit history report which will give you a much better understanding of your financial score. 

The good news with websites like Experian, is that it will usually let you check as many times as you like for free, and without affecting it at all. Always check the small print first, as some companies may charge a small fee, or not offer the security of a hurt-free check. 

What determines a good or bad credit score?

Starting at zero all the way up to 999, the lower a number is, the worse your credit score is. Whereas the higher the number, the better it will be.

Whilst there are plenty of options available to you online when it comes to checking your credit history, there are three standout reference agencies in the UK which prove to be the most trusted, they are: Experian, Equifax and TransUnion

Each works within a slightly different parameter in order to constitute a good or bad credit rating. To help you understand more, we’ve created the table below: 


Very poor




Very Good























Can I get van finance with a poor credit score of 500?

Although the chances will not be in your favour, a rating of 500 may be enough to secure some form of van finance. Based on the table above, Equifax considers a credit score of 500 at the higher end of the poor scale, so van finance is certainly achievable in this bracket. 

In terms of your financial history, you may be forgiven by lenders for having a bad credit score if you have no other debts against your name. In this instance, you may not be solely at the mercy of your 500-point credit score.   

Can you access Hire Purchase van finance with poor credit history?

Statistically, Hire Purchase (HP) is the type of finance which has the highest approval rates and as such, is the preferred choice for people who have a history of poor credit. 

With a finance solution such as an HP, you actually prove less of a risk to a lender. This is because, unlike a personal loan, Hire Purchase van finance is designed to be secured against the van itself. So, if you have difficulty repaying the agreed monthly instalments, the lender is within their rights to repossess the van at any time.  

In fact, applying for finance through an option such as HP, can actually help improve your financial score in the long run. By securing a loan and meeting the agreed monthly repayments, it will demonstrate to other lenders that you can be a trusted source of financial investment, meaning it can be a win-win situation all round. 

bad credit car finance  

What is Hire Purchase?

Hire Purchase (HP) is a flexible finance option available to everyone, even those with bad credit. A favourable choice for many looking to invest in a new or used van, the Hire Purchase model means you can decide how much you want to pay as a deposit and then complete your purchase with fixed, affordable monthly payments​ over an agreed period of time.

As the name suggests, the Hire Purchase model means you are essentially ‘hiring’ the van up until you have paid off the loan amount in full, when you’ll then become the owner. As with many financial agreements, you will have the opportunity to pay-off the remaining balance at any stage if you wish, or terminate the contract early should your circumstances change. 

There are many benefits to buying a van via Hire Purchase finance, to find out more, check out the dedicated Hire Purchase van finance page on our website.

van finance bad credit no guarantor

Can I get car finance with bad financial history?

Just as with van finance, car finance can be achieved despite bad credit history. In this instance, the lender in question will look at your credit history on a case by case basis to weigh up their options. 

Some lenders even specialise in providing car finance to those with poor or bad credit history, but there’s more than often a catch. Be aware that those with a less desirable financial record could see themselves paying over the odds in terms of repayment amounts, and over a longer period of time.

Can you apply for leasing deals on someone else’s behalf? 

Although it sounds like a tempting idea, you cannot apply for financing or loans on someone else's behalf - it makes no difference if they have a good or bad credit history. The main reason for this is that the person applying for van finance isn’t the individual using or wanting to own the van, so there is a greater risk to a lender in doing so.  

Applying for van finance on someone else’s behalf is different from being a guarantor for someone. In the instance of a guarantor, both parties will have their name against the agreement so the risk falls on the guaranteeing party, rather than the lender themselves. This isn’t always a viable option though, so you will need to check with the lender in question to understand if it is an available route to van finance for you.  

bad credit van finance questions answered


Can I get guaranteed van finance?

No business can guarantee van finance approval for you, especially if you have a low financial record. No matter if you are employed or self-employed, lenders must follow their own criteria and regulations to be able to offer a loan to you. Companies that promise or advertise that they can secure guaranteed lease or finance deals, should be regarded with caution.

If a person can't afford to finance a car, van, motorbike or any other vehicle, this might cause them significant financial problems.

Access van finance at Loads of Vans 

When it comes to accessing van finance, then you’ve come to the right place. Here at Loads of Vans in North Cheam, South London, we supply vans to businesses all over the UK.  

We are an established new van and used van centre serving Surrey and South London, supplying high-quality new, nearly new and approved used vans no matter what your needs. 

For years now we’ve been helping business owners large and small secure van finance at favourable rates. From Hire Purchase to Contract Hire, discover more about our leasing options in our ‘Finance Leasing Explained’ video below to find out the benefits - you’ll be pleasantly surprised!

Not sure where to start? Explore over 400 great-value vans in stock and available right now. You could be driving away in your next four-wheeled business partner sooner than you think! Why not take a peek at our NEW VAN DEALS which are sure to set your pulses racing thanks to our too-good-to-miss offers.

Do you want to go green? Then you’ll be impressed by our range of electric vans, each designed to support your business in the best way possible. Not only will you reduce your company’s carbon footprint, but you’ll save a pretty penny on fuel costs too!    

Another article that might interest you: find out more on what you need to access no deposit van finance.

Our finance experts are on-hand 7-days a week to answer all of your questions and help secure a finance deal no matter what your credit situation is. Don’t delay, get started today - contact us to speak with one of our friendly Loads of Vans bad credit finance specialists and ask for a quote. 

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