Car credit is a term synonymous with car finance. A car finance is a loan that is secured against the value of the car that is often selected from the finance company’s showroom. In other words, car credit comes as a ‘car plus finance’ package deal. Car credit companies often offer several incentives to potential customers to make their deals attractive to them. These may include free insurance, cash back, part exchange and other freebies. The leading car credit companies in the UK are:

Welcome Car Finance

Approved Car Finance (Now ACF Car Finance)

Ucan Car Credit

All these companies offer guaranteed car credit if you satisfy the following conditions:

- Are a UK resident

- Over 18 years of age

- Have a valid full UK driving licence

A guaranteed car credit offer becomes relevant when you have a less than perfect credit history. High street lenders are often unwilling to advance loans to people in such financial circumstances. This is where guaranteed car credit lenders come to the picture. Their interest rates may be higher than that of the mainstream lenders but you stand the best chance to get finance from these lenders. The interest rate charged will depend on your credit history (of course!), repayment capacity and the term of the loan.

Though it is often called guaranteed car credit, no lender will be willing to give money to someone who has no clear source of income and hence dubious capacity to repay. As such an annual income of at least £5,000 is often insisted upon. If you have poor credit circumstances have a regular income with sufficient repayment capacity, these lenders are there to help you out.