Applying for a car loan will not just get you a new car, but it can act as a launch pad for improving your credit history in the long run too.
(PRWEB UK) 28 March 2012
For anyone thinking about taking out a loan, perhaps to buy a new car, Car Loan 4U have compiled a list of relevant tips to help boost your creditworthiness.
Car Loan 4U Co-Director James Wilkinson explains;
“It is all too easy to get yourself into problems with debt. A couple of missed or late payments can leave you with a bad credit report. Also, one thing that many people who have never taken on credit or monthly contracts on items such as mobile phones forget to realise is that they are something of an unknown quantity to lenders as there is no record of how good they are at repaying loans. This can sometimes leave individuals deemed a credit risk.
“But there are tips that anyone can follow if they want to improve their credit record. Registering on the electoral roll and paying bills on time will help, but also applying for a small loan and repaying it quickly may help. Applying for a car loan, for example, will not just get you a new car, but it can act as a launch pad for improving your credit history in the long run too.
“It is also worth remembering that whatever your credit record when it comes to buying a new car there is increasingly car credit available. At Car Loan 4U we offer car finance deals with a competitive APR starting at 7.9%.”
Car Loan 4U Tips to improve your credit report
1. Register on the Electoral Roll: Lenders use the electoral roll to see if you are who you say you are and as a precaution against fraud. Registering is a good way to improve a bad credit record.
2. Pay Bills on Time: Paying monthly bills on time will help boost your credit score. Anything from broadband or mobile phones, credit cards and other bills will show that you are a credit worthy applicant.
3. Minimise Applications: Shopping around can sometimes leave you with a credit footprint the size of an elephant, so be aware that nearly every application for credit – mortgages, credit cards, loans - triggers a search of your credit report that leaves a record. Limit and leave plenty of time between your applications so as not to cause problems.
4. Take Out a Car Loan: Taking out and repaying a car loan can show lenders and credit reference agencies that you are able to repay credit. You should always repay the loans though as a missed payment will raise alarm bells with lenders and will leave you with an even worse credit record.
Further credit score rating tips may be found on the Car Loan 4U website:
For your car finance needs visit: http://www.carloan4u.co.uk