Help & Advice

Does applying for a car loan leave a footprint on your credit profile?

Hello, I have a credit rating of 736 as per credit expert and my car has today failed its MOT.

I do not have any savings or a deposit but wondered what the likelihood of me being accepted for credit is as i will probably not apply if there is not a great chance. Please also confirm if applying will leave a footprint on my credit report? Thanks

Laura


Answer

Hi Laura, yes - applying for a car loan does leave a credit search / footprint on your credit profile but we only carry out a maximum of 2-3 searches when you apply.

As you have a fair credit score I'd be fairly confident that we could get you approved for car finance as long as you are employed and can prove your income.

If approved, we provide a no obligation quote and you can choose your next car from any reputable car dealer in the UK. They would obviously take your current car in part exchange from you. Have a great evening and please apply when you feel ready. Kind Regards, Rachel

Answer correct as of September 2016

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4 years

In this illustration your credit score is set to

Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

We compare products from 18 of the UK's top lenders to get you the best deal.

Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

CarFinance 247 is a broker and not a lender

More related questions

Hi, I have just gone self employed this week working a contract that guarantees an average of £688 pw after tax. I have a credit score in the mid 700s and I'm living with parents at the moment.

I need to buy a reliable estate car for work as I am currently relying on a colleague for travel. What are my chances of finance for a vehicle around £8000 with under 80k miles and is around the 2006-2007 year? Finally, does applying for car finance effect my credit score?

Answer

Hi Cameron, thank you for using the Q&A and apologies for the delayed response.

Applying for finance for any product does impact your credit score slightly as you're applying for a new credit agreement. The more times you apply for finance, the worse it looks, so when you make an application for car finance please just use our company to start with. Hopefully we'll have you approved with one of our lenders in minutes anyway.

The only stumbling block I can foresee is that you won't have 3 months' bank statements yet to prove your income. Is this the case? As you're self employed with a fair credit score this is what we'll need to send into the lender. If approved, the £8000 shouldn't be an issue.

Please make an application when you're ready, and keep all your payments up to date while you're collecting the 3 months bank statements. Kind Regards, Rachel

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Rachel Wilson, Underwriting Manager

Set your budget

£
4 years

In this illustration your credit score is set to

Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

We compare products from 18 of the UK's top lenders to get you the best deal.

Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

CarFinance 247 is a broker and not a lender