Scrap finance threat
May 28th, 2009 by Richard Aucock
CAR owners signing up for scrappage finance deals need to make sure they have a good credit rating.
This is because those with a poor credit history will not only fail the standard credit history check…
… But they’ll receive a further black mark against their credit score.
Even those who pass the credit check may not get as good a finance rate as someone else with a ‘better’ credit score.
The introduction of the scrappage scheme means more car owners with less than perfect credit histories may be looking at buying new cars.
While credit experts Equifax says it is a generalisation, ‘a good proportion of those who own cars that are 10 years or older are likely to be in the lower earning sectors of the consumer marketplace.
‘The big question will be whether their earnings and existing financial commitments will give lenders the confidence to extend credit for their new car purchase.’
This is why Equifax is advising car dealers offer buyers use of its Credit Score tool.
Instead of using one of the big reference companies, Equifax can offer risk-free credit checks, using the national average. Results are displayed in traffic light style – with problem areas glowing in red.
This way, says Equifax’s Neil Munroe, potential buyers ‘can make sure their credit rating is looking its best before they apply for car finance.
‘The better their rating, the better finance or loan deal they should be able to negotiate.’
Another reason why the expertise of a car dealer could prove invaluable for car buyers.
BLOG: Big Government profit from scrap…
Tags: Add new tag, credit, finance
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