Using credit scores to lease a car
A credit score is a system that breaks down numbers, its used by banks and lenders to help determine whether you qualify for a particular credit card, loan, mortgage or financial service. They use this information, together with the additional information provided by you on your application form, to calculate a score that represents your credit history. This helps them to determine what kind of borrower you are, and how likely you are to pay back the borrowed sum of money.
Higher score, lower risk?
Credit scores play a key role in what financial services are available to you, and at what rate of interest you will be expected to pay back. A higher credit score generally means you are less risk, and are more likely to manage the repayments of a credit card, mortgage, loan etc.
It’s worth noting that different banks and lenders use different systems, and it’s not one size fits all, so getting turned down by one lender, doesn’t necessarily mean you will be turned down by everyone, however please be aware that any applications whether successful or not, will affect your credit score.
What affects my credit score?
A number of different things can cause your score to change, these include:
- The total credit your currently using vs your current debt
- Credit account payment history
- Applications you make
- Public records (electoral roll and county court judgments (CCJs))
Simple steps to help manage your credit score.
- Ensure your repayments are paid on time and kept up to date
- Close unused credit cards and accounts
- Make sure you are registered on the electoral role, which provides proof of address
- Review your credit status on a regular basis
The vast majority of car leasing companies have stringent financial requirements, and require a number of guarantees, using credit scoring to evaluate the potential risk posed by a person, with a poor past financial performance or no financial history at all.
Let CVS help you…
At CVS, we strongly believe that car leasing and finance should be available to all, and have made our application process as easy as possible, for our clients to get behind the wheel of a new car. We understand that applying for credit can be a daunting prospect, especially when you have a poor credit history or no credit history at all.
That’s why we only review your current circumstances, focusing solely on affordability and traceability, meaning your past financial history is of no importance to us. This means, we do not carry out credit checks as we do not base our decision on your credit score. We hope this gives you the peace of mind, that your application, won’t have any adverse effect on your existing score.