Car finance can boost your credit score and build positive payment history

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Personal Finance News

Car Insurance,Retail And Consumer

Lenders tend to favour borrowers with a diverse credit mix as it proves that they are able to manage different types of loans.

A recent survey suggests that people in Great Britain are the least likely in Europe to think about their credit score, with nearly half of adults not even aware of their current financial rating. Having good credit worthiness can pave the way to many useful benefits, including access to better borrowing terms, lower interest rates, and improved chances of successful loan applications.

Jonathan Such said: “Buying a car is often one of the first significant investments you make, particularly if you’ve passed your test at a young age and are looking to hit the road as soon as you get hold of your driving licence. Sticking to your monthly instalments and making on-time payments will work wonders on your credit rating, as it shows you have the ability to manage and keep up with your bills. This is something that future lenders will consider carefully when deciding whether to give you a loan or not.

He continued: “Reliability and responsibility are things that finance providers take into serious consideration when evaluating an application. A good track record of timely payments can make the difference between a successful and rejected loan request.

 

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