How to repair your credit history and obtain cheaper car finance online

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With our online car finance service, even people who have a poor credit rating are able to obtain a vehicle. However, some people may wish to repair their credit history before buying a used car in order to pay less interest. Contrary to what people often think, it is not as difficult as it may sound to begin turning around your credit history. With a few simple amendments to how you manage your finances, and with an awareness of how credit ratings are determined, you can begin to see improvements in as little as six months.

First of all, it is possible that you will still be able to obtain a credit card even if you do have a poor credit history. The only caveat is that your new credit card will probably come with a very high interest rate. Nevertheless, if you use this card to make small transactions and pay off the debt, this will allow you to prove to your lender that you are a responsible borrower. Furthermore, making small transactions with the card will ensure you aren’t stung by the high interest rates. Consider using it when you refuel your vehicle, for example, or when you are purchasing your weekly shop, then pay it off immediately with your debit card. You could even set up a monthly direct debit in order to guarantee the debts are being paid off. By doing this for six to eight months you should start to see some improvement to your credit rating.

You should, furthermore, only have one form of credit to your name. You will be consider a more risk-averse client if you have access to several forms of credit, such as other bank cards or store cards. If you have any of these, even if you don’t use them, cancel them as soon as possible. This will prove that you are managing your finances appropriately and transparently. Speaking of transparency, one of the things you must do is make sure you are on the electoral roll. If you are registered to vote, this allows a bank or lender to certify your identity.

Being reliable in the eyes of a creditor isn’t just about your financial history. Your personal history can also determine the way that a lender will view you. A bad credit history coupled with no long-term employment and no address for a home you own, for instance, will categorise you as a very risky client. However, even if your credit history is poor, you will still be looked upon favourably if you can be seen to have stayed in the same job for a number of years or have owned your home for a significant amount of time. This proves that you not only have a steady income but, equally, you have the ability to keep up with important payments. If you are concerned about having bad credit, it would be ill advised to leave your job in the near future and it is advisable to ensure mortgage repayments are sustained.
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