Factors that affect your credit score
Even
if you have bad credit, some car finance providers
will be more lenient to applicants whose credit
rating shows signs of improvement. So by giving
yourself time to recover from any past mistakes can
make a big difference when applying for car finance
with a history of bad credit.
Positive Factors
to build your credit score
- Getting on the
electoral roll can help improve the way you are viewed
by lenders which boosts your chances of being
accepted for credit. This is because credit reference agencies are able to verify who you are,
which can make you appear more stable to lenders.
- Make sure you check your credit report regularly. If
the information on your credit report isn’t
accurate then your credit score won’t be either. By
spotting any mistakes and fixing them this can help
boost your score.
- Using a credit card little and
often responsibly is key to building your score. By spending small amounts and paying off your bill on
time each month can make you appear more attractive to lenders because it shows you can reliably pay back
money you borrow.
- Always pay your bills on time. Forgetting to pay bills can damage your credit
score as it suggests to lenders you struggle to
manage your credit well.
Negative Factors that
affect your credit score- Missing payment dates
- Moving home and/or job too frequently shows signs of
instability
- Having no history of credit at all
can lead to a poor score
- Applying for too many
applications in a short space of time#
- No credit
is also bad credit as there is no evidence for
lenders to show that you are able to make
repayments on time. If they don’t have enough
information about you, then this would make them
uncertain about lending their money.