In order to give you credit, banks and finance brokers use your credit score to see how much they are willing to lend. Your credit score also allows lenders to see how well you manage credit, in other words, whether or not it may be a risk to a lender.
Everyone has a credit score however not everyone knows what their credit rating is. Do you know whether your credit score is good or bad? If not, here is a brief breakdown of how to check it.
Experian, Equifax and Callcredit are just three of the many companies in the UK that collect information on how well you manage credit and make the relevant payments. Once they have this info, a report can be compiled on your credit score rating. Credit score ratings come out as:-
- Very good
Maybe you need to know your credit score in order to apply for car finance for instance. One way to do this is to sign up with Noddle, this is free. As part of Callcredit, Noddle will be able to check your credit score then send you a free monthly report. It’s as easy as that.
What you should be checking
Established credit reference agencies will let you check your credit score. They also make sure all of the information they have on you is correct. It’s important to get into the habit of checking your credit score and reports at least once a year especially if you’re in need of additional finance. When you receive a report, make sure that:-
- All of your information is up to date
- You unlink any financial ties with ex-partners
- You are on the Electoral Register
- You have cancelled any unused store or credit cards
- There is no fraudulent activity on your credit report
Credit scores take into account years of past behaviour, not just your recent financial activities. If you’re worried about having a poor credit score, there are ways to improve it. Here are a few steps which you can use to raise your credit score like:-
- Watching any credit card balances
- Paying your bills on time
- Dealing with any outstanding County Court Judgements and existing high levels of debt
- Avoiding moving home a lot – lenders tend to feel more comfortable if they can see you have lived at the same address for a considerable amount of time
Applying for a car on credit
Your credit score rating is generally the determining factor as to whether a car finance company will lend you cash. Even if you have a very low credit score, all is not lost. We can assess your rating no matter what your circumstances are. Imagine being able to buy the motor you’ve always wanted.
If you need a car and have been refused credit elsewhere, Zoomo Car Credit can help with the finance. We have hundreds of cars on site so there’s an extensive range to choose from. Applying for Zoomo car finance online is easy to do, it only takes 30 seconds!