Our Top Tips for Boosting Your Credit Score Before Buying on Finance
If you want to buy a used car on finance the application process will look at your credit score. Now, while it's not just the credit score that counts - there is no denying that a good credit score will increase the chances of you securing finance.
Before you go to apply for used car finance here are our tips for ensuring your credit score is the best it can be:
Check your credit score
Nowadays there are various websites which allow you to check your own credit score for free. This is really essential to do, especially before you make an application for credit, such as when applying for finance to buy a used car. Errors do occur and can make a huge impact upon your score so be sure to check once a month or so to ensure everything is as it should be.
You also can end up being financially linked with people you live with so ensure their scores are good. If they are not then make your finances as separate as can be. In addition, if you are married or living with a partner and break up ensure that your credit records are de-linked as anything they go on to do could have a detrimental effect upon your own score.
Register to vote
Credit scores look at various aspects of your personal data and financial history to determine how good your financial health is. A key thing that a credit check looks at is whether you are registered to vote. Lenders use the electoral roll information to confirm your name, address and where you have lived before. Without these details your file will be judged as unpredictable and that's what drops your score down.
Don't miss any payments
Missed payments on things like credit cards have a huge impact upon your credit score - and stay logged on there for three years. To avoid this it's best to have a direct debit set up to ensure you don't forget to make a payment each month. If you are short of money and can't make a payment speak to your credit company before you miss the payment, as they can put in place measures which may protect your credit score.
Don't apply for too much at once
Every time a full credit check is done by a company you hope to borrow from, it adds a mark to your record. To many marks and, again, your credit score will go down as it indicates you may be trying to borrow too much. If you want to borrow a large amount, for example as part of a car finance deal, it's best to save other applications for credit until after you have agreed that - giving around three months free space before you do your car application.
We hope these top tips help you in getting your credit score into the best shape. If you want a new used car and are considering car finance, speak to us today and we can advise you.
Bad credit car finance?
It is still possible to apply for car finance with bad credit however your monthly fees may be higher due to the lenders perceived risk. We can help you find the best finance option ensuring you get the car you want at an affordable rate.
Sub-prime finance is not guaranteed and may cost more than finance provided by a prime lender. We will try to obtain finance for you but there is no guarantee. It may be from a sub-prime lender, and if so, the cost of finance may likely be at a higher rate than prime lenders offer.
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