We answer your queries below on how being on the Electoral Roll or not affects your application for car finance.
Being on the Electoral Roll is incredibly important, and is now a legal requirement; if you’re not registered you could be fined up to £1,000. The longer you live at an address, the better it is for your credit rating. If you move from place to place every year, it can be difficult for credit agencies and lenders to keep track of your movements and therefore it can result in a lower credit rating.
When you apply for credit, you would usually be asked for 3 years' worth of address history, so if you move more than once in this period of time you'll need to keep track of what agreements were made at which address.
Though lenders would ideally like you to stay in the same place for a long period of time, this is sometimes unrealistic. The most important thing in getting a great credit rating is that you ensure your traceability. This means that wherever you go, make sure that you inform the credit reference agencies of your move, as well as any creditors you have agreements with. Finally, if you make sure you’re on the Electoral Roll, you’ll ensure that even if you do move your credit rating won’t be too negatively impacted.
If you've missed the Electoral Roll forms which come through your letter box every 12 months, you can contact your local council to get added, or you can apply through the Direct Gov website.
For more information on how not being on the Electoral Roll can affect your credit rating, head over to the Credit Clinic. We explain more about each individual credit rating, what factors can have an affect on your credit rating, and steps you can take to start improving your credit file. You'll also find a list of charities and consumer advice services that can provide free, impartial advice to help you with your finances. Visit the Credit Clinic for more information.
If you require further assistance, our team of Customer Advisors are here to help. We're open six days a week - you can view our opening hours here - and we're more than happy to answer your questions.