Are you struggling to get car finance? Do you keep being declined, and you’re not sure why? Our handy top 5 tips to improve your credit rating could help you.
Register to vote at your current address
Lenders check the electoral roll as a precaution against fraud and to check that you live where you say you do. Lenders also check for an address history and having no official record of previous addresses can negatively affect your application. Registering at any address you live at (even temporary or short-term addresses) could help your credit rating.
Review your credit report regularly
Lenders use your credit report information to make their decision.
Under the Consumer Credit Act you have a right to see your report held by each credit reference agency for £2.
Be careful! If you opt for the 30 day free trial a monthly fee applies after the free trial ends and you must cancel the trial to avoid the fee.
Make sure your report is up to date and accurately reflects your circumstances. Look out for any suspicious entries that look unfamiliar to you as this could be a sign of identity fraud. Check your financial associations with people and ensure they are correct. If you wish to remove a financial association to someone complete a financial disassociation form.
Space out credit applications
Applying multiple times for credit in a short space of time can be a sign of desperation or fraud to lenders. Try to avoid applying multiple times within the same month and aim to leave at least a few months between applications.
Keep personal information (such as how long you’ve lived at your address or your employment details) the same between applications. Lying on a finance application form is fraud and could result in the application being rejected.
Keep up with existing repayments
Try to make at least the minimum repayment required. If you are struggling to keep up with repayments, contact your lender to discuss your options. Ask for a repayment schedule rather than ignoring the lender and defaulting on the loan. If you have existing defaults then ensure that you are working towards clearing them and lowering the balance.
Buying everything with cash and having no credit history can be a bad sign to lenders. If you have no past credit information they cannot judge how well or badly you are likely to pay them.
We specialise in providing car finance for people with bad credit which can be a great way to rebuild your credit rating if your repayments are made on time.
Protect your identity
Ensure that you shred any paperwork containing your personal information. Criminals can steal your personal information and use it to open bank accounts or take out credit in your name. Be wary of any letters you receive demanding payment for an account you didn’t set up. Check your bank statements for any unfamiliar or suspicious entries and avoid cold callers who ask for money or personal information.
Our speciality is providing car finance to people with poor credit, defaults, CCJs or ex-bankrupts. At Glenside Finance we promise to treat you as an individual and look at your application personally rather than using a computerised credit scoring system. We aim to work with our customers to provide car finance packages which are affordable and simple.
If you want to find out more about our options for bad credit car finance then call us on 01329 849434 to speak to one of our representatives today.