How to Improve Your Credit Score Before Applying for Car Finance
Looking to boost your chances of car finance approval? This guide shares simple, practical ways to improve your credit score before you apply.
If you’re planning to apply for car finance, your credit score plays a huge role in the deals you’re offered. A stronger score could unlock better interest rates, lower monthly payments, and more lender options.
At carloans 365, we believe everyone deserves a fair chance at car finance — and with a few simple steps, you can give yourself the best possible start.
Why Does Your Credit Score Matter?
Lenders use your credit score to assess how reliable you are when it comes to repaying money. The higher your score, the less risky you seem — and the more competitive the offers you’ll get.
Even if you’ve had financial difficulties in the past, it’s possible to improve your credit profile over time.
1. Check Your Credit Report for Errors
Start by checking your credit report with the UK’s main credit reference agencies: Experian, Equifax, or TransUnion.
Look out for:
- Incorrect addresses
- Outdated financial accounts
- Missed payments listed in error
If you spot any mistakes, you can raise a dispute to have them corrected — this could boost your score fairly quickly.
2. Register on the Electoral Roll
Being on the electoral roll at your current address makes it easier for lenders to confirm your identity, which can have a positive effect on your score.
It’s free and takes just a few minutes on the gov.uk website.
3. Pay Bills On Time, Every Time
Your payment history is one of the biggest factors in your credit score. A single missed payment on a credit card or utility bill can cause a dip.
Top tip:
Set up direct debits to make sure bills are paid automatically and on time.
4. Keep Credit Utilisation Low
This is the percentage of your available credit that you're using. If you’re consistently close to your credit limits, lenders may see you as a higher risk.
Try to stay below 30% of your credit limit — for example, if you have £1,000 available, aim to use no more than £300 at any one time.
5. Avoid Multiple Applications in a Short Time
Each time you apply for credit, a ‘hard search’ is recorded. Too many hard searches in a short period can lower your score.
Before applying for car finance, space out any other credit applications like phone contracts or store cards.
Bonus Tip: Consider a Credit Builder Card
If your credit history is limited or has some issues, using a credit builder card responsibly can help demonstrate good borrowing behaviour. Just be sure to pay off the balance in full each month to avoid interest.
Ready to Apply? carloans 365 Can Help
Whether your credit score is excellent or could use a little work, carloans 365 is here to help you explore your options. We work with lenders who understand that life happens — and we’ll support you every step of the way.
Apply online today for a quick, no-obligation quotation
