That way, you can address any issues that might be present – and give yourself the best chance of bumping your score up before you apply. With this in mind, you might want to request a copy of your statutory credit report a few months before you’re planning to buy your next car. Even though we have specialist providers for people who have a poor credit rating, you’re still likely to get a better deal if your credit rating is as positive as possible. Credit scoreĪt Car.co.uk, we work with a large panel of lenders who can provide finance for a huge range of people and vehicles. Now we know there’s more to getting car finance than simply having a good credit score, it’s worth putting together a quick checklist that will help you make sure you’re in with a good chance of getting the deal you want. Improving your chances of getting car finance With those two examples, you can see how someone with an excellent credit rating can be refused finance – and someone with a less than average credit rating can potentially get finance fairly easily. The finance company would consider the risk here to be very small, so you’re likely to get the finance, even if your credit score could use a little work. You’re in a position to put a large deposit down – so your monthly payment comes down to around £100 per month. Let’s say you earn £1,600 each month and you’re looking to buy a new Ford Ka on a PCP deal. So, if you earn £2,000 per month, you simply will not be able to get the finance, regardless of your credit rating. Well, that might be the case – but with a monthly HP payment that’s likely to well exceed £3,000, affordability might be a problem. You’ve got an excellent credit rating – so you should have no problem – right? Imagine you decide you’d like to apply for finance on a Lamborghini Huracan. #30K CAR SORTY FULL#While that helps companies decide whether or not they’d be willing to lend to you – it’s not the full story – and a good credit rating doesn’t necessarily mean you’ll be a suitable candidate for car finance. Ultimately, a credit rating only really gives a lender an idea of how you’ve conducted your finances in the past. And, if things weren’t complicated enough – it’s never just as simple as checking your credit rating to decide whether or not you could finance a car. If it sounds complicated – it’s because it is. With this in mind, a score of 550 would be good with Equifax – but lower than average with TransUnion. On the other hand, TransUnion (previously known as CallCredit) has a system that goes between 0-710 – with the UK average being around 610. As such, different lenders will see different numbers, based on which system they use.įor instance, Equifax’s scoring system allows for a score between 0-700 – with the UK average being around 380. The problem is, different credit reference agencies use slightly different scoring systems. While it would be nice to simply quote a number to indicate whether or not your credit score is good enough to buy a car on finance – the credit scoring system isn’t quite that simple. What credit score is needed to finance a car? Here, we’ll explore credit scores in a little more depth – and offer some advice that’ll help you make sure your chance of being accepted is as high as possible. It makes sense to do some research before you commit to an application – but it’s not always as simple as quoting a particular credit score number, especially as different lenders work with different scoring systems. What credit score do I need to be approved for car finance?īefore applying for a loan, people often want to know what credit score is needed to buy a car on finance.
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