Your credit score is extremely
important, in fact, it’s an asset that you can leverage to get the best finance
deals. So, if you’re in the market for a house, a car or even a personal loan,
you want to at least consider your credit score and what influences it. If you
have a near-perfect score then you can proudly join a very select club.
However, it’s not uncommon to have a less-than-stellar score, and it’s surprising how many people out there don’t really know what a credit score is, let alone what influences it.
Credit reference agencies store
details of your credit score in your credit report, and every time you apply
for car finance, a mortgage or any type of personal loan, this financial record
is accessed by lenders which gives them information on how you handle your
So, if you’ve missed payments on your phone bill that will show up and potentially influence a lender. If you’ve defaulted on a previous loan for example, this will leave a mark on your report. Likewise, if you always meet your contractual obligations then this will be reflected as well.
This makes sense if you think about it, going with car finance as an example, if a lender is going to let you drive away in a car worth thousands of pounds, they want to make sure that you’re a responsible borrower and you’re not a risk for them to lend to.
Fortunately, even if you have bad credit, there are specialist lenders out there who can help you. Check out this comprehensive guide to bad credit car finance  if you’d like to learn more about bad credit.
The infographic below details some simple steps you can take to improve your credit score and ensure you’re doing things the right way. Staying on the road to good credit will open you up to the best finance deals.