Credit Eligibility
When you apply for finance, you will be subject to a credit check. Find out what this means for you and your Credit Score.
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What do we mean by a Credit Check?
Why will my credit be checked when taking out a lease?
What will the finance companies look for on my Credit Report?
Where can I check my Credit Report?
I have a history of bad credit. Should I still apply?
What do we mean by a Credit Check?
A Credit Check is when a business (in this case a Finance Company) reviews information on your credit report to understand your financial behaviour when it comes to accounts where you have taken out credit.
The finance company will view information such as how much credit you have taken out, whether this has been paid back on time and how you are managing your debt. When the finance companies conduct this search, it is done by a team known as underwriters.
This is a hard search and will be recorded on your credit history, which will then be visible to other businesses in the future. Too many hard searches on your credit report in a short space of time can be detrimental to your credit score for 6 months or more.
Why will my credit be checked when taking out a lease?
A leasing agreement (typically, but not limited to, Contract Hire or Personal Contract Hire) is a financial product offered to you by the finance company, for whom we are a broker.
The finance company will purchase the vehicle, enabling them to hire it to you for a cost. As with any financial product, the finance company require a check of your Credit History in order to determine what risk you present to their business.
If, for example, you have a good history of repayments and a low amount of credit against your name compared to your income, this presents a low risk to the finance company.
On the other hand, if you have a poor history of missed or delayed repayments, this suggests an instability that the funder may not be willing to accept as the risk to them is too high.
It is important you have a good understanding of your Credit History when you submit a finance application. We may be able to advise on the best way to present your application to the funder, or whether you are unlikely to be successful. In the latter case, we may advise against submitting an application for fear of negatively impacting your credit score.
What will the finance companies look for on my Credit Report?
The finance companies may look for:
- Your full name
- Your date of birth
- Your current address
- Your electoral roll information
- Your income
- Your financial history over the past six years, specifically any credit against your name and whether you have defaulted on any payments
- Any outstanding CCJs (County Court Judgements)
- Any financial links you may have to other people
- Any instances of fraud
This is not an exhaustive list.
Where can I check my Credit Report?
We strongly suggest reviewing your Credit Report before submitting a finance application. There are many services available to you, so we've listed a few below.
If your credit score is anything under 'Good', we'd suggest speaking to one of our Sales Consultants who can suggest the best course of action to take.
I have a history of bad credit. Should I still apply?
Applicants with bad credit are not always going to be declined. In some cases, there may be negative marks on your Credit History that have been resolved but not removed, such as incorrect information regarding your payment history. In these instances, it may be possible for you to get them amended which can improve your chances of being approved for finance.
Please note that increasing the initial rental or choosing a cheaper vehicle is no more likely to get you approved for credit. In any event, we'd always suggest speaking to one of our experienced Sales Consultants for advice and guidance based on your individual circumstances.