Checking Credit Score

When it comes to car finance, your credit score is probably like the British weather, it’s going to come into conversation at one stage or another. You’ll need a credit score to get finance and the better your score is, the better your chances of getting a good deal.

Getting turned down for car finance because of a poor credit score can be very discouraging. While having bad credit is a worry, it doesn’t have to be the end of your four-wheeled dream. There are a lot of people who struggle to get car finance due to having a poor credit score. Don’t worry, there are a number of things you can do to help improve the situation.

Know what your credit rating is

Even people with good credit scores can be rejected by car finance lenders. If you have a bad credit score, improving it can be a little tricky especially if there’s debt, CCJs or mortgage arrears involved. All is not lost, here are a few tips on how to raise your credit score:-

  • The first step to improve your credit rating is to know what it is. To do this, check out the three main credit reference agencies namely, Equifax, Experian or Callcredit. These agencies offer free trials or free versions to check your file.
  • While you’re browsing your file, make sure to check for any errors like addresses on old accounts. Check them regularly, at least once a year and especially for a credit application.
  • Make sure you’re on the electoral register and cancel any unused credit or store cards. If you have any joint financial products with someone else, consider their credit scores. Are they dragging yours down?
  • To improve your credit rating, make sure you pay any monthly payments on time and in full. This could include anything from mortgage repayments, credit card repayments to mobile phone bills.
  • Try to get rid of any debt which will improve your credit score dramatically. Ok this is easier said than done but getting back on the right track with debt will improve your credit score for the better.
  • Stability is also what car finance companies are looking for. Things staying the same like personal details, landline telephone numbers, employer, bank and home addresses all demonstrate stability.

Credit Score

What does bad credit mean?

In a nutshell, bad credit means you have a relatively low credit score. Your credit score is calculated using your credit report, it’s a way of measuring the risk of how you pose to a lender. Low credit will probably mean you might find it harder to be accepted for car finance and considered a risk in the eyes of a lender.

Different car finance lenders have different criteria for who they will give credit to. If you have been rejected, all is not lost. Get in touch with Zoomo Car Credit, we will help anyone no matter what their financial circumstances are. There’s no pressure even if you have got CCJs, defaults, no credit history, rent/mortgage arrears or are ex-bankruptcy. You can apply online for car finance in less than thirty seconds and drive away today with nothing to pay.

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Jan has worked in the car finance industry for the past 20 years and I currently run Zoomo Car Credit. I specialise in car finance, helping customers who who have bad credit get accepted!