How will car finance affect my credit score

Before you apply for used car finance in Barnsley, you may want to know exactly how it will affect your credit score. At Car Credit Now, we want you to feel confident when you apply with us so we have taken the time to explain this.

Inevitably, whenever you apply and enter into a personal finance agreement, whether it is a credit card, a phone contract or a car finance arrangement, it will be added to your credit record. Credit lenders will look at this record to decide if you are a suitable borrower, evaluating your repayment history and overall credit score. The higher your credit score, the better your chances of being approved for future loans.

Before you apply for car finance, lenders will perform a credit check, which can affect your credit score. Generally, credit checks should not have any significant impact unless they are a frequent occurrence. If this is the case, your score may decline because multiple applications for finance can be a cause for concern for lenders, especially if you already have a poor credit rating. To avoid this, try to keep the number of applications you make to a minimum. An advantage of applying for used car finance in Barnsley with Car Credit Now is that we will send your details to numerous finance providers at once, so you'll be able to compare several quotes from different lenders while only adding one application to your finance record.

Once you have been approved for car finance, your credit score can be affected by your repayment record. If you keep up with your monthly payments, this demonstrates that you are a reliable borrower, and your credit rating is likely to improve. On the other hand, if you regularly miss payments, this can reflect poorly on you as a finance candidate and your rating may decline.

To ensure that you make your payments on time, it is important to be realistic with your monthly budget when you apply. Our in-house experts at Car Credit Now can help you to figure out a budget, give us a call or apply for used car finance in Barnsley online to get started!