How to Mend a Bad Credit Score
Interested in purchasing a car on finance but have a bad credit rating? Don’t panic! Credit scores aren’t permanent and, by working to rebuild your rating, you can still get a great deal.
When car finance providers look at applications, they will check your credit history to assess whether or not you are a reliable borrower. If you have a bad credit score, this is a red flag to lenders, who may consider you to be a high-risk applicant.
High-risk borrowers are more likely to be refused car finance or face higher rates of interest, so this situation is certainly not ideal. However, repairing a bad credit score may be easier than you think.
Ways to Improve a Bad Credit Score
1 Make sure the information on your credit report is correct by checking
- that all of your personal details are up to date
- that all of your credit accounts are listed
- that there are no payments recorded as missing that have been made
- that there are no signs of fraudulent activity
If you believe there are errors on your file, contact the credit reference agency straight away
2 Pay off any outstanding debt
3 Set yourself reminders to ensure you pay your bills on time
4 Keep track of your spending and make sure you are able to make credit card repayments
5 Keep the amount of credit applications you make to a limit
6 Get yourself registered on the electoral roll
Most importantly, keep it up! Car finance lenders will want to see that you are able to keep making regular repayments for a long period of time. If you are dedicated, your credit score will keep rising and rising!
Unfortunately, rebuilding a credit score is not a fast process, and if you simply cannot wait to get behind the wheel of your next motor, speak to our car finance experts at Carzoopa. We have helped many customers secure bad credit car finance and will happy to talk you through your options.