It can be difficult to obtain finance when you are 21 or less, this is due to a number of factors such as limited credit history or low affordability. However, there are still options available to you in order to obtain a car.

If you wish to discuss further, contact the MotorPocket customer service team who can look at your personal circumstances and suggest the most appropriate options for you.

Limited credit history

Lenders use details of your past credit and repayments history to assess how likely you are to repay their debt. This includes credit cards, loans, mobile phone contracts, some utilities. The less credit history you have the less likely lenders are to grant credit, or you may be charged high amounts.

Actions you can take:

Check your credit file: contact the credit reference agencies Experian, Equifax, CallCredit to see what the lenders see. See more detail on our credit reports and ratings page.

Contact your bank: If your earnings are being paid into your current account, ask the bank for finance options. Banks often look at your banking history with them instead of or in addition to your credit file.

Consider a guarantor: lenders may require a guarantor (often a parent) if your credit history is limited.


To obtain credit in your own name, lenders need to be confident you can afford the repayments. If your earnings are low, you are in a temporary contract, or you have just started work this is hard for them to prove. Once you have 6 months regular income and on a permanent contract you are in a stronger position.

Actions you can take:

Calculate your own budget: before approaching a lender, work out how much you can realistically afford. Take into account future events that might impact your income e.g. if you only work during term time or holidays. Lenders often will only lend if the repayments take up no more than 25% of your disposable income.

Consider a joint application: lenders will usually allow a joint applicant at the same address which could be a partner or parent.

Consider a guarantor: lenders are more likely to lend if there is a guarantor, although they will still need to prove the loan is affordable for the borrower.

Things to Consider

If you are a student and your parents are buying the car for you, then they could take out a personal loan.

Be realistic. Obvious maybe, but it is very easy to take an overly optimistic view of what you can afford and either end up financial difficulty or damage your credit record for future finance applications.

Beware Short Term and Pay Day loans

These are not usually large enough or for a long enough term to buy a car, and typically the interest rates are very high.

Most lenders consider applicants with a history of payday loans to be higher risk, so your chance of future credit could be reduced.


How MotorPocket can help

We look at your personal circumstances and review your available options.

We assess affordability and find out how much you could borrow.

We contact appropriate lenders to secure required finance.

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