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What is my credit rating and how could it affect me buying a car?

Your credit rating is vital when buying a car on finance, so you should to try to improve it and fix any mistakes in it that could jeopardise your chances of signing a deal.

Words by: First published: 14th April 2015
If you want to buy a car on finance, the lender will use your ‘credit score’ to decide whether to lend you the money. And the better your score, the more likely it is they will lend to you.

There are numerous factors that go into the score – your credit history, previous business with the lender, criminal record, and so on – but you can find out what’s on your credit file by talking to one of the three agencies: Equifax, Experian and Callcredit.

If you want to improve your score, there are a number of things you can do, including:
  • Make sure you are on the electoral roll
  • Avoid high levels of debt
  • Don’t make late payments on utility bills
  • Don’t have joint credit with anyone with a poor credit rating
  • Cancel unused credit cards
You should also ask to see your credit report (which can be done through a credit reference agency, such as Experian or Equifax) and fix any mistakes.
Related topics:
New car finance