Do you need good credit for a car subscription?

Credit Checks – Why do we have them?

Car subscriptions have recently gained a reputation for purely supplying ‘sub-prime’ customers. These customers tend to have poor credit and are traditionally considered to be higher risk. Whilst it seems brutal, the reality of lending customers with a £20,000-£100,000 asset is scary. As a company you have to ensure you’re going to be paid and your products are going to remain in manufacturer approved condition. Whilst Mycardirect doesn’t accept sub-prime customers anyway, there are some benefits to not being a finance solution. Read on to learn more about how car subscription differs from traditional finance solutions.

Will a car subscription affect your credit rating?

Car subscriptions are not considered loans and so do not affect a customer’s credit score. That means that if the customer needs financing for other expenditures, they will show a lower level of debt compared to taking a traditional vehicle lease. This is an excellent solution if you’re looking at getting a mortgage and don’t want anything to influence your credit rating.

How can you check your credit score?

If you would like to know what information credit references hold about yourself you can contact them directly.

Equifax Ltd
Customer Service Centre
PO Box 10036
Leicester
LE3 4FS
www.equifax.co.uk/

Experian
Landmark House
Experian Way
NG2 Business Park
Nottingham, NG80 1ZZ
Tel: 0844 481 8000
www.experian.co.uk

Please be aware that there may be a fee payable.

How to improve your credit rating?

• Build Your Credit File.
• Don’t Miss Payments.
• Catch Up On Past-Due Accounts.
• Pay Down Revolving Account Balances.
• Limit How Often You Apply for New Accounts.

For any additional credit check information, please visit Experian.