Good credit


Good credit is the name for one of the credit ratings that you can be given based on your credit file. While not as high as an ‘excellent’ credit rating, a good credit rating means you have access to most of the best car finance products and interest rates.


What do I need to have good credit?

Credit ratings are judged based on your credit file. Your credit file details all the financial transactions you have been involved in over the years, with the last five years being what is assessed to give you your rating.

A good rating means you have a trackable and traceable recent history. That means you have been on the electoral roll, so your address history is easy to trace. You have also probably had previous finance agreements that you have paid off in fall.

Your credit file will also not have many (if any) negatives recorded. These can be missed finance payments or defaults, county court judgements (CCJs), or bankruptcies.


What are the benefits of a good credit rating?

Having a good credit rating means you will have more options to choose from when it comes to a finance agreement. If you have a poor or bad credit rating, you may be limited to specialist providers. With a good credit rating, you will be able to find more providers willing to offer you a finance package.

Some finance products are only available to those with good or better credit ratings. In general, Personal Contract Purchase finance deals are more widely available to those with a good credit rating. You will also be able to find better interest rates on the packages you apply for, meaning you won’t be spending as much on the deal.

In summary, a good credit rating will allow you to find more products at a much better cost than someone with an average/fair, poor or bad credit rating.


How can I get a good credit rating?

Before you apply for any type of finance product, you should take a look at your credit file to see what your current rating is. Applying for a finance product without knowing your current score can lead you to having to cancel an application, or paying for a more expensive finance product than you might have available to you.

If you check your credit rating and find out you have a fair or poor credit rating, then you might want to start taking steps to repair your file. The easiest way to improve your credit score is to increase your traceability. Sign up for the electoral roll, as this will allow the credit check agencies to better trace your address history.

You should then look at consolidating any debts you have into a manageable payment, as clearing debt and defaults will also improve your credit rating. Sometimes your credit rating can be lower because you haven’t taken out a finance package before. Look at credit builder credit cards or small purchases on finance, just so you can demonstrate that you can repay a finance agreement. It can seem a little strange to do this, but your credit rating is also how finance providers assess you as a customer. The less of a risk you are, the more likely they will lend to you.

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