Confused or Worried about your credit rating at Marshall Hyundai?

Take the stress out of buying a vehicle from us with one of our affordable finance packages which can be tailored to enable you to buy the car of your choice with ease.

Our prearranged car finance facility has been specifically designed to help customers who feel they may have a poor credit history, find a car that fits within their monthly budget.

All we need is a few details to get you started and by the end of our quick and convenient process, where we do all the work for you, you will know ahead of visiting one of our dealerships that your funding is secure, meaning you can concentrate on finding the car which is right for you.

Find out what it means, plus tips to improve your score.

There is a lot of confusion surrounding credit ratings. Rumours are commonly banded around about ‘blacklists’ and student loans being included in the credit rating.

This guide is here to help tell you why your credit rating matters and how it could affect you.

What is a credit rating?

In simple terms, a credit rating is a grading system used by banks and lenders when you are applying for a bank account, credit card, overdraft, mortgage and other financial products.

Example credit report

Although it is a common myth, there is no credit score blacklist and your credit record is not held on a single database. Your records are held by three major credit companies: Call credit, Experian and Equifax.

Your credit rating is just one factor in a lender’s decision. Every bank or lender will couple your rating with data of their own. For example, from the application form or internal credit history. Whilst there are lots of factors involved, you can help yourself by being aware of and taking care of your credit rating.

How do they calculate your credit rating?

Nobody is sure of the exact calculation used to get your credit rating and the agencies all use different factors when ranking you. This is why it’s best to check with all three (see below).

However, we can be sure of which factors are taken into account and which definitely aren’t…

They will check:

  • Past bank dealings
  • Utility payments
  • Mobile phone contract payments
  • Credit card history
  • Loan history
  • Building society history.

They won’t check:

  • Student loans – Contrary to common belief, student loans do not have any influence on your credit score!
  • Parking fines
  • Whether you have checked your credit rating
  • Salary (although the bank will check this)
  • Savings
  • Gambling activity
  • Criminal records.

4 ways to improve your credit rating

  1. Get a credit card or take out a loan
    You can improve your credit rating by taking out a credit card or a loan and making repayments on time.
  2. Pay all bills on time
    The simplest way to improve your credit score is simply to make sure that you pay all of your bills on time. That includes utility bills, mobile phone contracts, rent and any form of loan repayments.
  3. Get on the electoral role
    If you aren’t on the electoral role then you won’t have a credit score at all. A lot of students fall foul to this one because after moving from home many don’t register with a new address.
  4. Space out applications
    A lot of credit agencies will check the times that you have applied for things. As a student you may have to apply for lots of things all in one go but make sure you can spread out your applications for any extra finance and only apply if you really need to. If you are denied credit at any point, wait at least 30 days before making a reapplication.