One of the biggest factors in determining not only what finance deals you will have access to, but also how much you will be paying on such plans, is your credit score. A good credit score will essentially open the door to any and every deal within your budget, but a poor credit score could (in the short-term, at least) greatly reduce your options. As a result, you may be wondering how you can change this and how to boost your credit score to ensure that you can get better car finance deals. Here, we’ve provided some tips.
The first thing that you could do, and the most obvious thing, would be to start managing your finances more efficiently. If you find that your credit score is low because of overspending and/or reckless spending, then the pathway forward is pretty clear. But even if you are not spending beyond your limits, you may still find that there are important savings to be made, crucial cuts to be made, that can go a long way. Bear in mind that your goal is to end up purchasing a car, so if you’re spending money willy-nilly, then this will always be a challenge, which is why it’s vital to start being careful about what you’re spending money on.
The second thing is to try and determine whether your credit score is negative because of an external factor, such as a redundancy at your previous place of employment. A credit score doesn’t always take into accounts the reasons why you might have suffered financially, just the mere fact that you have. And on occasion, the explanation for your credit score going down will be out of your hands. By clarifying this to the relevant parties, this could lead to your credit score slowly heading back into the opposite direction, and consequently you having the chance to explore more options for car finance plans.
The final option is to clear all of your outstanding debts. Some may be minor and easy to pay off; others may be larger and thus having a greater impact upon your everyday financial situation and, consequently, your credit score. This isn’t to say that they can be cleared just like that, but you do have the option to formulate a plan, prioritising which debts need to be handled the soonest, and approaching them first to ultimately reach the most positive long-term destination. Don’t assume that you can do this overnight; it will take time, possibly a great deal of time, but should you achieve this, you will reach the point where you are no longer tied down by major debts, you will be financially stable, and your positive credit score will allow you to end up with the ideal vehicle for your needs.
Want to know more on how to boost your credit score? Call us on 01925 599079.
As part of our services we deliver the car to your premises of choice within the UK. Lately we have delivered cars in most major towns including the Southern cities & midlands: (London, Birmingham, Leicester), Northern cities (Manchester, Liverpool, Sheffield, Leeds, Newcastle), and Scottish cities (Edinburgh, Glasgow).