Do you know what your credit score is? Or how your credit score may affect your chances of securing finance? Our credit score is not something we are taught about in school or that we talk about with friends and colleagues. However, your credit score is really important as it can have a massive impact on your ability to get a loan, finance a car or even get a mortgage.
Your credit score is used by lenders to assess how much of a risk you are to lend to. The better your credit score the more likely you are to be able to get the best rates and deals. So learning about your credit score will provide you with an important life skill.
You may think that because you haven’t borrowed any money you must have a good credit score. However, having no borrowing history makes it hard for lenders to gauge how much of a risk you pose and as a result, your credit score is likely to be lower.
Likewise, people who have struggled with their finances in the past may wrongly assume they are unable to get credit. However, while it is true that those with a poor credit score may find it harder to get credit, there are some lenders who specialise in working with people with a poor credit history.
The good news is that there are lots of simple steps you can take to improve your credit score. So if you’re looking to finance a new car and want to make sure you’re in the best financial position to do so then take a look at this handy guide to bad credit car finance from Stoneacre Motor Group.
If you’re looking for ways to improve and maintain a healthy credit score, the steps suggested in the below infographic are a great place to start.