How are Credit Scores Calculated?

Tim Carpenter
Written by Tim Carpenter

Your credit score is based on the history available on the way in which you have managed the repayment of loans and other forms of credit over the last six years.

For example, if you have paid all of your debts on time, for instance, you are likely to have a good credit score. If you have missed payments, defaulted on them altogether, had to resort to a debt management plan to manage your debts, enter an Individual Voluntary Arrangement (IVA), DRO or a Scottish trust deed, or have been declared bankrupt, your credit score will have been adversely affected at each of these steps.

The higher your credit score, the higher the chance of approval for a car loan, as lenders will have more confidence in your propensity to repay. You would also be eligible for some of the most attractive rates of interest, and here at CarFinance 247 we have very competitive finance deals for those with good credit.

However, with such a large panel of lenders, we also have finance options available to those with less than perfect credit histories. In fact, a number of our lenders specialise in providing finance to those with bad credit, including for those with CCJs, defaults or that have been refused elsewhere.

Perhaps because of your youth or financial lifestyle, you have no credit record or credit score at all – there is nothing to indicate whether you are likely to handle debt responsibly or otherwise.

The lack of a credit history might be making your life as difficult as having a low credit score when it comes to securing the finance you need to buy your new vehicle.

At CarFinance 247, we aim to help customers with a range of credit histories to finance their next vehicle (whether it’s a car, van, motorbike or motorhome!). In most cases, a deposit isn’t needed, and we can also help if you’re self-employed, a part-time worker or retired (to name just a few!).

If you are looking to improve your credit score, there are a number of ways in which you can do this. For example, make sure you are on the electoral roll, keep up to date with all you monthly payments and regularly get a copy of your credit file to make sure all the information on it is correct.

Finally, try not to make lots of applications for credit. If you have made a lot of applications for finance (not just car finance but for credit cards or loans etc.), this may leave a footprint on your credit file.

Once approved at CarFinance 247, you can buy a car from any reputable dealership in the UK.

To see how much you could borrow, why not use our car finance calculator?

Get a quote
No impact on your credit score
Rates from 7.9% APR. Representative APR 20.7%

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Tim Carpenter
Tim Carpenter Car Finance Expert
5 years
Total cost of credit £ 2000
Total repayment £ 2000
48 monthly
payments of
£ 245 98

Rates from 7.9%: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £6,500 over 5 years with a representative APR of 20.7%, an annual interest rate of 20.7% (Fixed) and a deposit of £0.00, the amount payable would be £168.48 per month, with a total cost of credit of £3,608.67 and a total amount payable of £10,108.67. 

We look to find the best rate from our panel of lenders and will offer you the best deal that you’re eligible for. We don’t charge a fee for our service, but we do earn a commission. This does not influence the interest rate you’re offered in any way.

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96% of our customers recommend us: † Based on feedback left on independent review site Reviewcentre. May 2019.

CarFinance 247 is a trading name of CarFinance 247 Limited. Registered office: Universal Square, Devonshire Street North, Manchester, M12 6JH. Registered in England. (Registration Number 06035525).

CarFinance 247 is authorised and regulated by the Financial Conduct Authority for insurance distribution and credit broking (Firm Reference Number: 653019). CarFinance 247 is registered with the ICO (Registration Number Z1897658).

Finance is subject to status and is only available to UK residents aged 18 and over. Written quotations are available on request.

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