Lenders tend to favour borrowers with a diverse credit mix as it proves that they are able to manage different types of loans. A recent survey suggests that people in Great Britain are the least likely in Europe to think about their credit score, with nearly half of adults (46%) not even aware of their current financial rating. Having good credit worthiness can pave the way to many useful benefits, including access to better borrowing terms, lower interest rates, and improved chances of successful loan applications.
According to the latest statistics, an estimated one-in-five Brits have a poor credit rating. However, the good news is that there are several ways to improve your score, including taking out car finance. Jonathan Such, head of sales at vehicle finance company First Response Finance , explains how it can boost your credit score, establish credit history, build a positive payment footprint and more.
It’s important to be aware that this is obviously a high value purchase on credit, there are other ways to improve your credit score such as getting on the electoral register - which more people may have already done in order to cast their vote in last week’s general election . One of the most appealing benefits of taking out car finance is that it can help establish a longer credit history . This is especially true for those motorists who are new to credit or have a limited credit history.
Jonathan Such said: “Buying a car is often one of the first significant in.
