If you’re looking to apply for a lease then you’ll want to have your credit rating in order!
It is inevitable that you’ll have your credit rating checked when you’re applying for a vehicle lease and so a little preparation can go a long way in ensuring you get a ‘yes’.
Although you’re not strictly applying for finance when you apply for a vehicle lease you are asking a company to ‘approve’ you. The company will want to feel sure that you can both afford to take on a lease as well as make the payments each month and your credit report will be the indicator they will look at when making their decision.
There are 3 main Credit Reference Agencies in the UK; Equifax, Experian and Call Credit all of which you can view your personal credit report with. There may be fees involved to do so.
You can also help yourself in 4 simple ways to enhance your credit rating, firstly make sure you’re on the Electoral Roll. This is used to verify that you are who you say you are and also confirms your current address.
Secondly, look at the Account Data that is held about you on your credit report. Are these all up to date? Do you have unpaid overdrafts on any of them? Any missed payments? The information on Accounts can date back as far as 6 years and include account information relating to utility bills, mobile phone contracts, debit and credit cards, loans, mortgages etc.
Number 3 is to check any financial associations. Any individual you have had a financial link to in the past can have an affect on your ability to get credit. So if you’ve shared a mortgage, loan, business account etc with somebody else previously, and their credit rating isn’t up to scratch this can affect you getting credit in the future.
Lastly, any County Court Judgments (CCJ’s), Bankruptcies, IVA’s etc will be detailed on your credit report as well as any indictors of any serious money issues in the past 6 years.
It’s not just the factors above that can affect whether or not you get granted credit in the future, other factors that can affect a decision are; high levels of personal debt, missed or late payments as well as other types of credit you already have such as loans, mortgages, utility bills etc. Applying for multiple amounts of credit within a time frame can be another factor that could earn you a refusal as well as any errors on your credit file. Also having multiple credit cards can seriously affect your credit score.
Our top tips for improving your credit rating:
- – Ensure you’re on the Electoral Roll
- – Cancel any unused account or cards
- – Ensure you always pay on time and keep up timely repayments
- – Resolve any outstanding arrangements or issues
- – Don’t use Pay-Day loans
- – Review who you have financial links to
- – Always check your credit report to keep on top of your financial health
At Cocoon, we review each application on an individual basis and we’re happy to look at new start companies too when looking for a vehicle lease. If you’re looking for a lease, why not get in touch to see how we can help? You can call us on 01332 290173 or complete the form below and we will be in touch as soon as we possibly can.
