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.

• 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.