What is a credit history?
Credit history is a record of your borrowing and repayment activities which contains information on past loans and credit cards. Credit history plays a significant role in car finance, as it gives lenders an insight into your financial behaviour and reliability when assessing your application.
How does credit history affect car finance?
As well as affecting your chances of getting approved for car finance, your credit history also dictates what interest rates you will pay, the terms of the loan and the deposit amount. Generally speaking, a good credit history means you will find it easier to get a car finance agreement with good terms, while a poor credit history can make financing more difficult and expensive.
