EV Salary Sacrifice Credit Checks: Employee & Company Guide 2026
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Thinking about getting an electric car through salary sacrifice, but unsure how credit checks work? You’re not alone. Credit requirements are a common concern - especially if you’ve been declined for car finance before or work for a growing business.
The good news is that EV salary sacrifice works very differently from personal car finance. In this guide, we explain who is (and isn’t) credit checked, why personal credit scores don’t matter for employees, how company approval works, and what it all means for you in practice!
Do I Need A Credit Check For An Electric Car Salary Sacrifice Scheme?
If you’re applying for an electric car through salary sacrifice, you will not be credit checked as an individual. There’s no soft search, no hard search, and no visibility of your credit file at any point.
That alone makes salary sacrifice fundamentally different from almost every other way of getting a car.
Why Salary Sacrifice Is Different from Personal Leasing
With personal leasing or PCP, you’re entering into a finance agreement in your own name. That’s why lenders assess your credit score and borrowing history.
Salary sacrifice works differently. The lease is taken out by your employer, not you. You simply agree to reduce your gross salary in exchange for access to the car. Because the financial liability sits with the business, your personal credit profile is irrelevant.
What This Means for Employees with Poor Credit
If you’ve ever been declined for car finance despite earning a decent salary, salary sacrifice can feel like a relief. Past financial mistakes, thin credit files, or recent rejections don’t follow you here - the scheme is designed to be inclusive.
Why Don’t Employees Need Credit Checks?
Understanding why salary sacrifice ignores personal credit can be reassuring.
Business Contract Hire Explained
All electric cars offered through salary sacrifice are leased under business contract hire (BCH) agreements. These are standard commercial leases used by companies across the UK to run fleets.
Because the contract is between the lease provider and the employer, the employee is never assessed as a borrower.
How the Employer–Employee Structure Works
In simple terms:
Your employer signs the lease and passes the credit check
The business commits to the monthly payments
Your contribution is made through a pre-tax salary reduction
This structure protects both the lease provider and the employee.
Your Credit History Doesn’t Matter at All
Whether your credit score is excellent, poor, or non-existent, it’s never reviewed. There’s no “minimum score” or hidden threshold. It’s a great benefit of EV salary sacrifice schemes!
CCJs, Defaults, Poor Score: All Irrelevant
Even serious credit markers, such as CCJs or past defaults, don’t affect eligibility. Lease providers don’t see this information when assessing employees.
What Is a Credit Check?
Credit checks mean different things depending on who’s being assessed.
Individual Credit Checks Explained
For personal finance, lenders assess your borrowing behaviour, including:
Missed or late payments
Outstanding debt
Defaults and CCJs
Length of credit history
This is why many people are rejected for car finance, particularly for higher-value EVs.
Company Credit Checks Explained
Company credit checks are business-to-business assessments. They focus on whether a company can reasonably meet its financial commitments over the lease term.
How Credit Scores Work (Brief Overview)
Personal credit scores typically range from 0 to 999. Many car finance providers require scores of 620 or higher, excluding a large portion of otherwise capable earners.
Why Lenders Perform Credit Checks
Ultimately, credit checks exist to manage risk. Salary sacrifice shifts the risk from the individual to the employer, which is why it’s so accessible for employees.
Individual Credit Checks: Good News for Employees
Salary sacrifice = Zero personal credit check. There’s no workaround or exception here. If you’re accessing an EV through salary sacrifice, your credit file is never accessed.
Who Benefits Most from This?
Salary sacrifice is particularly valuable for:
Employees with poor or damaged credit
Young professionals early in their careers
International employees new to the UK
Anyone who has recently been declined for personal car finance
Your Credit File Is Never Accessed
Because no check is performed, there’s no risk to your credit score… even if you explore multiple vehicles.
What If I Have Really Bad Credit?
This is where salary sacrifice really stands apart.
Bankruptcy: Still Eligible
Even a recent bankruptcy doesn’t affect eligibility, as long as your employer approves your participation.
CCJs and Defaults: No Impact
County Court Judgements and defaults are never reviewed.
Low Credit Score: Doesn’t Matter
There’s no minimum score requirement - or any score requirement at all.
Recent Credit Rejections: Irrelevant
Previous declines for PCPs, loans, or leases have no bearing.
Young Drivers with No Credit History: Ideal Candidates
Salary sacrifice avoids the “catch-22” of needing credit history to get credit.
How Salary Sacrifice Compares to Personal Car Finance
Personal car finance is still heavily credit-dependent.
Personal lease/PCP: Typically requires a score of 620+, with rejection rates of 30–40%
Personal loans: Wide variation, but higher APRs for poor credit
Bad credit car finance: Often expensive, restrictive, and still uncertain
Salary sacrifice avoids all of this: no interest rates, no underwriting, and no employee rejections!
Company Credit Checks: What Employers Need to Know
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While employees aren’t credit checked, employers are.
Who Performs the Credit Check?
The lease provider carries out the assessment, typically using Companies House data and standard commercial checks.
What Lease Providers Are Looking For
They’re not looking for perfection - just reassurance that the business can meet payments over the lease term.
Timeline: How Long Does Approval Take?
Most company credit checks are completed within 5–10 working days, often sooner for established businesses with up-to-date accounts.
What Company Information Can Be Used in a Credit Check?
Companies House Data Requirements
In most cases, lease providers rely solely on publicly filed information.
What If Accounts Are Out of Date?
If filings are old, providers may request:
Updated management accounts
Recent bank statements
Director ID and KYC Checks
Standard “Know Your Customer” checks are used to prevent fraud and confirm identity.
How Lease Providers Assess Companies
In the case of electric car salary sacrifice, the company has to pass a credit check completed by the lease provider. The table below shows how the lease provider determines the strength of a company:
| Positive indicators include: | Negative indicators include: |
|---|---|
| Two or more years of trading | Very young companies |
| Recent profitability | Ongoing losses without explanation |
| Positive net assets | Negative net assets |
| No CCJs or overdue filings | Active CCJs |
Does Salary Sacrifice Affect My Personal Credit?
No. There’s no credit check, no record on your credit file, and no impact - positive or negative. Mortgage affordability is assessed separately based on salary, not credit score.
Can I Get a Mortgage While on Salary Sacrifice?
Yes, but timing matters. Salary sacrifice reduces your gross salary, which can affect how much you can borrow. Many people apply for mortgages before starting a scheme, or simply factor the reduction into their plans with a broker.
Advantages of No Employee Credit Checks
Removing credit checks:
Creates equal access regardless of financial history
Supports younger and international workers
Eliminates fear of rejection or score damage
How The Electric Car Scheme Makes Approval Easier
The Electric Car Scheme supports employers with:
95%+ company approval rates
Flexible criteria for growing businesses
Fast approval timelines (often 3–5 days)
Clear guidance and no hidden fees
Frequently Asked Questions
Do I Need a Credit Check to Get an Electric Car Through Salary Sacrifice?
No. Employees never need a personal credit check to access an electric car through salary sacrifice. The scheme works as a business contract hire, meaning your employer leases the vehicle and you access it through a salary reduction.
Your personal credit history - including your credit score, missed payments, CCJs, defaults, or even bankruptcy - is not checked at any stage. This is one of the biggest advantages salary sacrifice has over personal leasing, which typically requires a credit score of 620+ and rejects a significant number of applicants.
What If I Have a Really Poor Credit Score (Under 500)?
Your credit score doesn’t matter at all for salary sacrifice. It isn’t reviewed, accessed, or considered.
Employees who are commonly approved include:
People with recent or historic bankruptcies
Those with multiple CCJs or defaults
Employees recently rejected for personal car finance
Young drivers with no credit history
International employees new to the UK
As long as your employer offers the scheme and your salary comfortably covers the reduction, you can still take part.
Will Joining Salary Sacrifice Harm My Credit Score?
No, salary sacrifice has zero impact on your credit score.
Because no credit check is carried out, nothing is recorded on your credit file. That means:
No hard or soft searches
No negative (or positive) score impact
No effect on future credit applications
You can still apply for mortgages or loans separately. The only thing lenders may consider is your post-sacrifice salary for affordability - not your creditworthiness.
Can I Get an EV Through Salary Sacrifice If I Have a CCJ?
Yes, absolutely. CCJs don’t affect salary sacrifice eligibility.
They’re never reviewed as part of the process, and they don’t prevent you from accessing an EV through your employer. As long as:
Your employer approves your participation
Your salary covers the monthly reduction
You’re eligible, regardless of CCJs, defaults, or past financial issues.
Does My Employer Need Good Credit for Me to Access Salary Sacrifice?
Yes. While employees aren’t credit checked, employers do need to pass a company credit assessment with the lease provider.
This typically looks for:
Ideally, 2+ years of trading
Recent accounts showing profit
Positive net assets
No serious red flags, such as active CCJs
The good news is that most businesses meet these criteria, and approval rates are even higher when supported through The Electric Car Scheme.
What If My Company Is Less Than Two Years Old?
Younger companies may face a bit more scrutiny, but they can still be approved. Options often include:
Providing a director's personal guarantee
Starting with one or two vehicles initially
Supplying up-to-date management accounts
Demonstrating strong cash flow or growth
Many startups successfully offer salary sacrifice; company age alone isn’t a deal-breaker.
What If My Company Is Trading at a Loss?
Trading at a loss can make approval more challenging, but it doesn’t always mean a no. Lease providers will consider:
Whether the loss is temporary
If it’s linked to growth or investment
Cash reserves and overall financial position
In some cases, starting small or waiting for updated accounts can improve approval chances.
How Long Does Company Credit Approval Take?
In most cases, company credit approval takes around 5–10 working days.
For straightforward applications with up-to-date Companies House filings, approval can be quicker. If additional information is needed, the process may take a little longer - but you’ll be guided through each step.
What Happens If Our Company Gets Rejected?
A rejection doesn’t mean salary sacrifice is off the table permanently. Common next steps include:
Understanding the reason for rejection
Updating accounts or resolving issues
Reapplying at a later date
Starting with a smaller number of vehicles
Many businesses are approved on a second attempt once circumstances change.
Can Employees With No Credit History Use Salary Sacrifice?
Yes, salary sacrifice is an excellent option for people with little or no credit history.
This includes:
Recent graduates
Young employees
International workers new to the UK
Anyone who’s never used credit before
Traditional car finance often rejects these applicants, but salary sacrifice doesn’t rely on credit history at all.
Does Salary Sacrifice Help Rebuild My Credit?
No, salary sacrifice doesn’t build credit, because there’s no credit agreement in your name.
However, it can still be helpful while you’re rebuilding, as it gives you access to reliable transport without:
High-interest finance
Repeated credit applications
Risk to your credit score
You can focus on rebuilding your credit separately, while still driving an EV.
How Does Salary Sacrifice Compare to Bad Credit Car Finance?
For employees with poor credit, salary sacrifice is usually a far better option.
Bad credit car finance often comes with:
Very high interest rates
Higher monthly payments
Ongoing risk of rejection
Salary sacrifice, by contrast:
Requires no credit check
Offers savings of 20–50%
Avoids interest altogether
If salary sacrifice is available to you, it’s generally the simpler and more cost-effective route.
Can I Apply for Salary Sacrifice While Applying for a Mortgage?
Yes, but timing is important. Mortgage lenders assess affordability based on your salary after any sacrifices. Many people choose to:
Apply for a mortgage before starting salary sacrifice, or
Speak with a broker to factor it in properly
There’s no impact on your credit score; it’s purely an affordability consideration.
What Information Does My Employer Need to Provide for the Credit Check?
For most established businesses, very little. Lease providers usually rely on:
Companies House data
Director ID for standard KYC checks
If accounts are out of date, they may also request management accounts or bank statements. The Electric Car Scheme helps employers through this process to keep things simple.
Does the Salary Sacrifice Credit Check Affect the Company’s Credit Score?
Only minimally. Company credit checks are a normal part of business leasing and usually involve:
Public data reviews
Soft searches
Limited impact on business credit profiles
Any small impact typically recovers quickly and isn’t a concern for most businesses.
Interested in Learning More About EV Salary Sacrifice?
With BiK remaining just 3% until April 2026 (rising to 4%), and over 86,000 public chargers now available across the UK, salary sacrifice remains one of the smartest, simplest ways to go electric in 2026.
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Last updated: 07.01.26
Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme's terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.
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