If you’re thinking about applying for car finance in the UK, your credit score plays a big part in whether you’ll be approved and what interest rate you’ll be offered. But how often should you check it — and does checking it affect your score? Let’s break it down in simple terms!
Why does credit score matter for car finance?
A car finance credit check isn’t uncommon. Lenders use your credit score to decide how risky it might be to lend you money. A higher score usually means:
- More chance of being approved.
- Better interest rates.
- Access to more finance options.
If your score is lower, you might still get approved for car finance, but the terms could be less favourable. That’s why keeping an eye on your score is important — it gives you time to improve it before you apply. Car finance with good credit could be easier to obtain and cheaper in the long run!
As a car finance broker, we’ve specifically designed our lending panel to include a wide range of finance products from some of the UK’s best lenders. This ensures we can find car finance deals for a whole range of credit situations.
Free ways to check your credit score in the UK:
Knowing how to check your credit report is an easy way to get insights into your credit situation. You can view your credit score for FREE with:
Each credit reference agency uses its own credit scoring scale. What one may report as ‘poor’ credit, the other may see as ‘average’, so it can be a good idea to sign up for a couple of the reputable credit agencies above. Or, find out who the best credit reference agency in the UK!
What’s the difference between a ‘soft’ and ‘hard’ search?
- Soft search: A quick look at your credit file, often used for quotes or eligibility checks. It’s invisible to other lenders and won’t affect your score.
- Hard search: A full check done when you make a formal finance application. This can temporarily lower your score if you have too many in a short space of time.
When you’re just monitoring your credit score, you’ll be using soft searches. And, if you apply with UK Car Finance, your credit score won’t be affected! We use soft search car finance technology to allow us to take a peek at your credit report, without leaving a footprint.
Some lenders on our panel may want to perform a hard search credit check (after you’ve applied online with us), but we’ll always inform you before a hard search is executed.
What to do if your credit score needs work?
If you find your score isn’t where you’d like it, don’t panic. Small changes can make a big difference over time:
- Pay bills and loans on time.
- Keep credit card balances low.
- Avoid too many hard searches in a short period.
- Make sure you’re on the electoral roll at your current address.
Does car finance affect your credit score?
Getting a car on finance can help or hinder your credit score, depending on how good you are at making your repayments. When you first take out a car finance deal, you may notice your credit score drop. This is usually just temporary, though, until you start making your repayments. If you miss car finance payments or make late payments, your credit score can be negatively impacted. But, if you meet all your car finance payments, keep credit usage low and pay off your debt, having a car on finance can actually help to raise your credit report.
Find out more about how car finance affects your credit score.
For most people in the UK, checking your credit score once a month is enough to stay on top of things — especially if you’re planning to apply for car finance in the near future. Monitoring it regularly means there are no surprises when you apply, and it gives you time to improve your chances of getting the best deal.
Looking to Finance Your Next Car?
At UK Car Finance, we offer quick, no-obligation finance checks that use a soft search — so you can see your options without affecting your credit score!