Improve your credit score

If you've been turned down for credit a few times recently, it could well be the case that the information on your credit file is such that lenders judge you to be an unacceptable risk. Unfortunately, desperately applying to more and more lenders in the hope that one will accept you can just make things worse; credit searches show on your credit file and too many may lead lenders to believe you are just desperate for cash. To start improving your credit score, take a look at the following suggestions:

• Get hold of a copy of your credit report. Experian and Equifax are the two credit agencies used by most lenders, with Call Credit the third most popular. These companies will all provide you with a copy on request, although you may need to pay.
• Check that the basic information on the report is correct. Simple clerical errors such as the wrong address or an incorrectly spelled name can cause all sorts of problems. If you see anything wrong, ask to have it corrected.
• Clear any defaults or make arrangements with your lenders. If you are owing money on a bill and it's appeared on your credit record as a default, the best thing to do is pay it off in full. If that's not possible, make an arrangement with your creditor to pay it off in a manageable manner. If you have lots of defaults or aren't quite sure how to go about offering your creditors a repayment plan, organisations such as StepChange or the Citizen's Advice Bureau offers free advice and support.

Once you have completed the above, recheck your credit score to note the improvements (it may take two or  three months for the credit information to be updated, so be patient).  Subsequently, try to take out credit again – ideally a very small amount with a lender that specialises in sub-prime lending.  PAY THIS OFF ON TIME. Provided you make all your repayments on time, you will be starting to build up a positive credit profile. If, having successfully paid off one lot of credit, you then apply for another, it's more likely a lender will agree, as you're beginning to show that you can stick to a repayment schedule.

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Regularly checking your credit score enables you to track your progress and also to make sure that an unexpected or forgotten debt hasn't suddenly made it onto your credit record, reducing the impact your credit building strategy is having.

Although ultimately it's up to our lenders or brokers whether they approve you for used car finance, we do have links with a number of providers that have a relaxed attitude towards risk subject to affordability checks, maximising your chances of ending up with a suitable product, even if your credit score isn't all you'd like it to be, feel free to give us a try.

Representative example:

Cash Price £7,500, borrowing £7,500 with £0 deposit and £0 charges over 48 months with an interest rate of 22.4% per annum fixed. Representative 22.4% APR fixed, the amount payable would be £234.75 a month, with a total cost of credit of £3,768.00 and a total amount payable of £11,268.00.