Car Finance APR: What Does it Mean?

Man signing a car finance deal

You need to buy a car but don’t have the money. Thankfully, your bank balance doesn’t mean you have to forfeit one of life’s main necessities. Car finance is on hand to provide the resources you require to own a vehicle.

Most people understand what the process entails, whether it’s opting for a hire purchase or a lease purchase with balloon payment. However, APR is something you’ll come across when searching for car finance and you might not know what it means. What is car finance APR? Keep reading to find out.

What is car finance APR?

The simplest way to understand APR is to view it as interest. The acronym stands for Annual Percentage Rate, and it’s the amount added on in interest yearly. It also includes any compulsory charges. APR continues to be included within your repayments deal until the deal is over and you either give the car back or own it outright.

How does it work?

APR works in the same way that most interest rates work. In terms of car finance, the dealership you choose will use a standard measure to calculate the amount of interest you need to pay. The higher the rate, the more you’ll pay back in the long-term.

What Can APR Affect?

Car finance APR mainly impacts how much you will pay over the course of a contract. The figure isn’t taken into account within the deal as it’s added on afterwards. Therefore, it’s essential to figure how much it is and whether you can afford it before signing on the dotted line.

Finance APR is a good indicator of offers as you can use the rate to compare quotes with other dealers on the market. For example, if everything is the same except for the APR, you could save a significant sum.

My Car Credit’s finance calculator

At My Car Credit, we recognise the need to be transparent, which is why we have a loan calculator tool you can use free of charge. If you ever wonder, ‘can I get car finance?’ you don’t need to wait too long to find out!

Of course, you can always contact a team member and discuss your options with them directly.

Rates from 6.9% APR. Representative APR 14.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 14.9%, annual interest rate (fixed) 14.85%, 47 monthly payments of £204.69 followed by 1 payment of £214.69 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,335.12, total amount payable is £9,835.12.

My Car Credit is a credit broker and not a lender.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

Car Finance Repayment Terms: What’s Best for Me?

Calendar for keeping track of car finance repayments

At My Car Credit, we understand how confusing car finance repayments can be. You might have found the perfect next set of wheels. However, you may also find yourself getting lost in a sea of paperwork and admin. Even worse, you may be getting tripped up over hidden costs and surprise terms and conditions.

But don’t panic – this article is designed to clear that confusion! What’s more, we’ll lay out what you can expect from different car finance repayment options, as well as the potential benefits and pitfalls of each. That way, you go into your search knowing what meets your requirements and how much you can afford. This means you can find a deal that suits you without wasting too much time or energy.

Don’t forget too, that once you’ve decided what kind of terms best match your needs, you can use our online car payment calculator to get a super speedy, straightforward quote from us.

Car finance repayments – what’s right for me?

First things first, and before you begin looking at repayment terms, it’s important to establish how much car finance you’d qualify for. Once you’ve worked this out, you’ll have a better idea of what to look out for when applying for car finance. This will allow you to tailor your search accordingly. We’ve also outlined what factors affect the cost of car finance too, in case you’re confused about that.

Repayment terms – what’s the difference?

Your car finance repayments will have a significant impact on what type of finance scheme best suits you. Below, we lay out the pros and cons of different repayment terms.

Short term loans

Typically, a short loan repayment term will tend to be between 18 to 24 months. Shorter repayment terms mean that you pay higher monthly repayments as you have less time to spread the cost. However, you’ll also pay less interest overall because you’re repaying your loan much quicker, slashing the amount of borrowing time.

The vehicle will also have a higher resale value once it’s been paid off. This is because a newer car is more attractive for re-sale than an older model, which is another factor to keep in mind.

Short repayment terms are great if you have a large monthly income and are financially stable. The upside is that you spread the car cost, slash interest, and can use your hard-earned cash on something else. Just be aware that you’ll likely be asked to prove that you have the income to fund a short-term loan. In the main, payslips and bank statements are the most obvious way to back this up.

Pros/Cons:

+  You pay off your owed balance quicker

+  Less interest payment overall

+  The vehicle will have a higher resale value once paid off

  You’re paying higher monthly repayments

  A potentially higher upfront payment

Long Term Loans

Long term repayments are the more traditional car finance package offered. You’ll usually spread the cost of your car over 48 or 60 months – 4 or 5 years in other words. This ensures that the repayments are more manageable than you’ll find in a short-term loan. What’s more, you may even be able to purchase a more expensive car, as you’re paying less upfront.

However, you’ll also end up owing money for a longer period of time. Plus, you’ll be paying interest for longer, which means the overall cost will be higher. This is because the amount you’re charged is based on the interest rate established at the start of the agreement, so you’re paying more to the provider with less value return on the vehicle.

Equally, a longer repayment period means that the value of your car will depreciate more. This is something to consider if you’re looking to sell or return the car at the end of the repayment term.

Pros/Cons:

+  Monthly repayments are more affordable

+  You might be able to purchase a more expensive car

 Lower resale value on the vehicle

 Interest payments are significantly higher

What’s the best option for car finance repayments?

It’s really important to go into your search for car finance knowing what you can afford. In addition, try to establish what suits your particular requirements – there isn’t a one-size-fits-all approach. If you don’t think you can front the monthly payments of a short-term repayment scheme, the long-term option is best for you. Equally, if you’re keen to trade in for a new vehicle after only a couple of years, the short-term option will be most appealing.

Using our car finance repayment calculator will help you to get a better idea of the best option for you. We design our car finance to be as flexible and user-friendly as possible. What’s more, we’ll give you a quote within minutes. We’ll only ask you for a few details, and our soft search check won’t affect your credit rating.

Talk to one of our friendly team today, and start your search for the best car finance for you.

Rates from 6.9% APR. Representative APR 14.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 14.9%, annual interest rate (fixed) 14.85%, 47 monthly payments of £204.69 followed by 1 payment of £214.69 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,335.12, total amount payable is £9,835.12.

My Car Credit is a credit broker and not a lender.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

How to Calculate Car Finance on Prestige and Supercars

Supercar bought after using a supercar finance calculator

Owning a supercar is the stuff of dreams. Petrolheads love the idea of cruising around in an iconic Ferrari or Lamborghini as they are the pinnacle of the industry. However, they are very expensive, with most in the hundreds of thousands of pounds range.

In 2017, for example, the then-new Bentley Continental Supersports was £212,500. In America, the fee was even higher (around £250,000) as different countries have different rates. Of course, prestige cars can charge as much as they like because of the element of luxury. For people who are desperate to add them to their collection, that means having the resources.

But, not everyone does, and even those who have often prefer to pay in instalments. This is where supercar finance comes in handy because it splits payments into affordable lump sums. In this post, we’ll take a closer look at car finance for prestige cars and supercars.

Is finance available for a prestige or supercar?

It depends on the circumstances. Broadly speaking, the answer is yes. Prestige car finance deals exist, and lenders are happy to offer them to eligible applicants. However, you need to meet the lending criteria before you are able to sign on the dotted line.

The best way to do this is to talk through your options and focus on the factors that impact the decision. For instance, boosting your credit rating will show creditors that you’re trustworthy, making them more likely to lend you the money. And, of course, you’ll need to be able to afford higher monthly repayments that come with the higher cost of a prestige car. Using a supercar finance calculator will help you work out your expected monthly repayments.

What financing method should you pick? Take a look below at the options on the table:

Hire purchase

Hire purchase, or HP works in the same way for supercars as it does normal cars. You agree to a set amount that you pay monthly for an extended period of time. At the end of the agreement, you own the vehicle and don’t need to pay anything else.

Personal contract purchase

PCP finance works in much the same way. However, instead of owning the car being mandatory, you have the option to give it back at the end of the deal. PCP contracts have smaller monthly sums but require a larger ‘balloon payment’ at the end of the contract if you choose to buy the car outright.

Equity Release

An equity release unlocks cash that you have in your car. Essentially, you can trade your current vehicle in and use the money to lower the value of a prestige car or supercar.

How do you work out the cost of supercar finance?

Given that they cost a lot more than most cars, it can seem quite tricky calculating the cost of supercar finance. Higher numbers can make things confusing, which can be enough to put off a lot of prospective buyers.

Thankfully, it’s a lot easier than it sounds. You simply take the value of the vehicle and divide it by the number of months in the repayment period. All that’s left to do is include the rate of interest – you can break it down into annual or monthly – and you have a quick and reliable figure.

Supercar finance calculator

If you prefer to let technology crunch the numbers for you, we understand. In fact, we completely agree because the right piece of tech is powerful and easy to use. That’s why our car payment calculator is on hand to help anyone who would rather call on the help of specialist software.

To do the maths on your next prestige vehicle, you merely need to enter the loan amount you’re looking for into the calculator. Next, pick the length of the repayment – we give loans from anywhere between three and five years. Finally, choose the credit rating that most suitably describes your situation.

Why should you use it?

Well, it eliminates mistakes for starters. But, if that’s not enough, check out these incredible features on our supercar finance calculator:

  • Results take a matter of seconds
  • There’s no impact on your credit rating
  • You can apply right away once you receive a loan offer

Let My Car Credit help you achieve your dreams

If you’ve been desperate to purchase a supercar for years, then My Car Credit is ideally situated to make your dreams come true. As a trusted and reputable broker, we draw upon a network of over 25 lenders to find a great deal, whatever your circumstances.

There’s no fuss or hassle, just a quality service that gets the job done.


Rates from 6.9% APR. Representative APR 14.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 14.9%, annual interest rate (fixed) 14.85%, 47 monthly payments of £204.69 followed by 1 payment of £214.69 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,335.12, total amount payable is £9,835.12.

My Car Credit is a credit broker and not a lender.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

How Much Car Finance Do I Qualify For?

Dad checking how much car finance he qualifies for on his phone

Car loans can be a great way to unlock extra spending power and purchase the car you want sooner. The model is hugely popular across the UK, with the latest figures from the Finance & Leasing Association suggesting one in nine new car purchases are paid for using car finance.

While most people are eligible for car loans the amount you can borrow does depend on several key factors. It’s important to consider these when browsing for new cars and hashing out your budget. To help you get an idea of your personal borrowing power we’ve put together a detailed guide to calculating car finance.

Your credit rating

The role of credit ratings is often overlooked when applying for car finance loans. The reality is that credit scores play a hugely important part in determining how much car finance you qualify for. Like home loans, credit ratings are used by lenders to develop an idea of the type of borrower you are. They want to be sure you’ll pay back your debt which is why the process is so carefully vetted.

Ultimately, credit checks are used to determine how much risk is associated with offering you a loan. So how much car finance do you qualify for? Let’s take a look at some of the factors that can affect your credit rating:

  • Payment history

The first thing lenders will look at is your payment history. Even one missed payment can have a negative impact on your credit score so it’s best to stay on top of your debts, even if you’re making the minimum repayment. Regular credit card repayments are one of the best ways to improve your credit score and position yourself as a responsible borrower.

  • Current debt

While credit card debt can be a good thing when applying for a car loan, too much can jeopardise your chances. The trick is to never use more than 30% of your available credit. For example, if your credit card has a limit of £5,000 you don’t want to have a balance owing of more than £1,500. This ratio helps to position you as a responsible and cautious borrower.

  • Previous credit checks

What many borrowers don’t realise is that credit checks can leave a permanent signature on your credit history. Applying for finance can result in the lender carrying out an in-depth credit check, which can appear on your report for up to 12 months. Banks will often carry out hard checks when vetting applicants for credit cards, mortgages and personal loans. It pays to be cautious when it comes to hard credit checks as too many can imply you’re a higher risk applicant. Why? Because too many credit applications in a short timeframe can suggest you’re too reliant on borrowing or are in financial trouble.

Unlocking better interest rates

Not only does your credit rating affect the size of your loan, it can also influence what interest rates you’re eligible for. Applicants with good credit ratings are generally seen as low risk, meaning lenders are willing to offer them better interest rates. Similarly, applicants with low credit ratings are deemed a higher risk and can be penalised with higher interest rates. Applicants with less than desirable credit scores can also be hit with larger fees and charges, another financial hurdle to consider.

At My Car Credit we understand just how important credit ratings are. That’s why we carry out all our initial credit checks using a “soft” approach. Unlike hard checks, soft checks don’t leave a trace on your personal record. This means they can’t be seen by potential lenders and won’t paint you as irresponsible or financially unstable.

Your monthly repayment budget

Your monthly repayment budget will ultimately determine the maximum value of your car loan. When crunching the numbers and calculating your monthly repayment budget be sure to factor in any extra fees and charges that may be associated with your loan. This can include anything from administration charges to ‘balloon payments’ at the end of a Personal Contract Purchase (PCP) loan. 

Factoring in interest rates is also important. You need to ensure that your monthly interest rates don’t surpass your maximum monthly payment budget, or your loan will start to increase.

Calculating the length of your loan

The length of your loan will have a big impact on your monthly repayment responsibilities. For example, a loan of £3,000 over two years will require 24 monthly repayments of £125, not including interest and fees. The same loan spread over a five-year period would require monthly repayments of £50. While the cost of a five-year loan may seem lower, the longer term translates to additional interest. This isn’t necessarily a bad thing, though it is something to be aware of when calculating how much car finance you qualify for.

Using a car finance calculator

Wondering ‘how much car finance do I qualify for?’ In truth, there’s a lot to consider when applying for car finance, which is where a purpose-built calculator can really help. Developed by our team of car finance experts, the My Car Credit car loan approval calculator crunches the numbers for you.

Start with our at-a-glance car finance calculator that asks for your loan amount, preferred repayment term and credit rating score. For a more detailed estimate click ‘Apply Now’ and follow the prompts. Neither will impact your credit score and both are designed to help kickstart your car finance journey and get you in the driver’s seat ASAP.

Want to find out more? Get in touch with the My Car Credit team to discuss your application. With access to more than 25 lenders across all credit requirements, we have the knowledge and expertise to secure you the best possible car loans.

Rates from 6.9% APR. Representative APR 14.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 14.9%, annual interest rate (fixed) 14.85%, 47 monthly payments of £204.69 followed by 1 payment of £214.69 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,335.12, total amount payable is £9,835.12.

My Car Credit is a credit broker and not a lender.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

How Do Car Finance Calculators Work?

Couple using a calculator to work out car finance

So, you’ve found a fantastic dealership with the perfect set of wheels, and are looking to drive your new car off the showroom floor as quickly as possible. It’s likely you’ll be wondering how best to fund your new car and whether you’re eligible for car finance. What’s more, you may be questioning how car finance calculators work and how much car finance you’d even qualify for.

My Car Credit is here to answer those burning questions. We’ll walk you through using our straightforward online car payment calculator so that you can get behind the wheel with minimal worries and in control of a repayment scheme that works for you. Read on to find out more.

How car finance calculators work

We understand how stressful it can be determining whether you’re eligible for car finance and finding the best car finance option. Between the paperwork and administration, you can end up getting lost in the fine print and end up with a car finance repayment deal that is both confusing and overly expensive.

That’s why we’ve worked so hard to simplify the process, making it as streamlined and hassle-free as possible. Our online calculator is easy to fill in and takes mere minutes to get you answers, crunching the numbers so that you know exactly what you can expect to pay, and when.

What factors our car finance calculators consider

Our calculator helps you establish your monthly repayment terms against the amount you’re looking to borrow. You simply fill in the car loan amount that you’re looking for, and your preferred repayment term, followed by your credit rating. We’ll also ask you for some personal information, such as your email address, current UK address, and employment details.

The calculator will then instantly break down this information and detail the typical rate of interest and monthly payments that you can expect to see depending on your personal circumstances. We’ll also outline the total amount payable, and explain our reasons for this. The calculation is subject to status, but it’s a good indicator of what your options are for car finance.

The benefits of car finance calculators

Using a car finance calculator can help you to establish what type of car finance is right for you. By being able to see any interest rates or monthly payments upfront, you can better see whether the loan offered suits your particular needs and requirements. Don’t forget that a late or missed repayment will affect your credit score, so using a car finance calculator to work out what type of monthly repayment you can afford is a huge advantage. That way, you’ll be better able to budget for your new set of wheels without being unrealistic.

Car finance calculators can be used in one of two ways, depending on where you are in the search for your vehicle. You could use the calculator to work out how much you’ll be paying for a specific car that you have your eyes on. Equally, you can use it pre-emptively before you’ve even found a car to establish whether you’re eligible for car finance. That way, you can establish how much you can afford to borrow before setting out on your search, which might avoid any disappointment further down the line.

Best of all, it’s free to use and there’s no obligation to go ahead. Plus, with us, the rate you see is the rate you get – we won’t surprise you with any extra costs or hidden terms.

Do car finance calculators affect your credit score?

One of the details that we’ll ask you to include when using our car finance calculator is your credit score – whether it’s excellent or good, fair, poor, or bad. Our calculator provides you with a credit rating guide which you can use to judge your rating.

But don’t worry, we’ll only do an initial soft search. This means we’ll conduct a search on your credit file that other lenders can’t see, meaning there’ll be no unexpected impact for you. We make an assessment of your creditworthiness based on the details you provide us and give you an indication of APR (annual percentage rate).

We’ll try to give you an exact APR that’s dependent on your personal circumstances – this is known as your personal APR or real rate. It’s worth knowing, too, that 49% of our customers are likely to get a better rate than the Representative APR, which allows us to clearly advertise our services, so that you can gauge how the rates we offer you compare with other car finance offers.

Our initial soft search is a fantastic way for you to establish whether you’re eligible for car finance without affecting your credit score. But be aware that if you proceed with our car finance, then we will conduct a hard search.

How accurate are car finance calculators?          

Our car finance calculator is specifically designed to be as straightforward and easy to use as possible. It helps you to establish the amount you can expect to pay for your new vehicle. Provided that you give us accurate, up-to-date information, there’s no reason that the car finance calculator would give you incorrect quotes.

That said, it’s worth bearing in mind that the numbers our car finance calculator provides are estimates and not offers. The quotes we supply are contingent on you giving us the correct information, and there are several factors that affect the ultimate cost of car finance.

Use our car finance calculator today

Whatever your car finance needs, My Car Credit is here for you. Our online calculator is easy to fill in and will give you an indication of eligibility and a quote within minutes.

If you choose to proceed with your quote, we have a team of car finance experts just waiting to help you through every step of the process. Backed by a network of over 25 lenders, we’re best placed to get every driver a great deal on finance for their next car. Start your car finance journey today.

Rates from 6.9% APR. Representative APR 14.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 14.9%, annual interest rate (fixed) 14.85%, 47 monthly payments of £204.69 followed by 1 payment of £214.69 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,335.12, total amount payable is £9,835.12.

My Car Credit is a credit broker and not a lender.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

Calculate Which Factors Affect the Cost of Car Finance

Woman using a laptop getting the best car finance for her

Brits are no strangers to car finance, with the latest data revealing around 90% of the 2.3 million new cars sold in an average year are financed through an FLA member. Finance can be a great way to unlock more spending power. However, before you apply it’s important to develop a good understanding of how the cost of car finance works.

What many people don’t realise is that the cost of car finance can vary significantly from motorist to motorist. Every applicant is different, and creditors will always adjust the cost of car finance accordingly. So which factors affect the cost of finance? Read on for our expert guide, including how to calculate the factors that affect the cost of car finance.

Cost of car/loan amount

The main factor that determines the cost of car finance is the overall price of the car and the total loan amount. This bottom line figure is what determines everything from monthly repayments to annual interest. While it can be tempting to focus on the price of the car itself it’s important to understand this isn’t the only factor at play. Interest rates, as well as extra fees and charges, can have a big impact on the overall cost of your loan. Before committing to a car loan, it’s always best to crunch the numbers using a cost of car finance calculator.

Deposit

Cash deposits are a major contributor as they directly affect the cost of the car and the loan amount. Deposits are taken off these figures which lowers the amount you need to borrow and brings down the total cost of car credit. For a quick and easy overview, check out our cost of car finance calculator.  

Repayment term

Like home loans, repayment terms will have a big impact on the cost of your car credit. For example, if you plan to settle your car loan within two years, your monthly repayments will be 50% more than with a four-year repayment plan. Opting for the shortest repayment term possible is a good way to slash your interest expenses. Basically, the faster you pay off your loan the less interest you’ll be paying.

Interest rate

Creditors always charge interest rates on loans and these can have a significant impact on the total amount you pay back. Interest is calculated on the total amount you borrow, which means the higher the loan the more interest you’ll pay. A typical Annual Percentage Rate (APR) is 6.9%, which includes your interest rate and any applicable fees. This means that on a £10,000 loan across three years, you’ll pay 36 monthly payments of about £307, totalling £11,065. This includes the £10,000 you borrowed and £1,065 in interest and fees.

Your monthly payments are set from the start of the agreement and stay the same throughout. However, at the start you’ll be paying more of the interest and less of the loan balance. As you get towards the end of the term, you’ll be repaying less interest and more balance.

Before signing a contract you’ll also want to determine whether your interest rate is fixed or variable. There are pros and cons to each, usually dependent on your personal preferences and financial situation.  

Credit rating

Credit ratings are incredibly important when applying for a car loan. They offer lenders an overview of what your spending habits are like and how responsible you are with money. This allows lenders to calculate the risk factor of offering you a loan and empowers them with the data to adjust interest rates accordingly. The risk is lower for applicants with good credit scores which means lenders are more inclined to offer lower interest rates. In comparison, applicants with lower credit scores are deemed higher risk and may be penalised with higher interest rates.

We always recommend starting with ‘soft’ credit checks as they won’t impact your credit score. Unlike hard checks, they don’t leave a trace on your credit score and aren’t visible to potential lenders. Take out too many hard credit checks and you risk presenting yourself as a volatile and credit-hungry applicant. 

Type of car finance you’re going for

The type of car finance you’re looking to take out will also affect the overall cost of your loan. Hire Purchase (HP) loans are one of the most popular models and involve paying off the full value of the car in monthly instalments. The loan is secured against the vehicle, meaning you won’t officially own the car until you’ve paid off the last instalment. You don’t need to put a deposit down on many HP loans but it will help lower your monthly repayments and overall interest if you do.

Personal Contract Purchase (PCP) loans are another popular credit option. Designed to be more flexible than HP loans, they’re based on a long-term ‘rental’ model that usually spans over three to five years. During this time, you make payments that allow you to use the car over the agreed period. PCP loans often come with mileage limits and damage penalties so it’s important to understand all the fine print before you sign on. When your contract comes to an end, you’re offered the option of returning the car and upgrading to a new vehicle on a similar contract or purchasing it outright with a ‘balloon payment’.

Balloon payments are an interesting concept as they can be financially challenging in themselves. At My Car Credit we understand how difficult it can be to find the cash for car loans which is why we developed a special Balloon Payment Finance plan designed to help you own a car at the end of a PCP contract.

Extra fees and charges

Don’t overlook the additional fees and charges that can often come with car credit. These can include brokerage fees, monthly account-keeping fees, statement fees, late payment fees and penalty charges if you choose to terminate your loan early. All can contribute to the overall cost of your car loan and it’s important to know exactly what you’re paying for.

Securing the best car loans

Need help securing a car loan? At My Car Credit we comb through more than 25 trusted car finance lenders to find you the best deals. We also have a lightning-fast cost of car finance calculator that can be used to estimate your repayments in a matter of clicks.

As part of Evolution Funding, we’re backed by one of the largest motor finance brokers in the UK and have access to the most comprehensive panel of car loan companies. What does this mean for you? It boosts our chances of finding you the best possible car finance deals and ensures your repayments and interest rates are as low as possible. To find out more, get in touch with our friendly team today on enquiries@mycarcredit.co.uk.

Rates from 6.9% APR. Representative APR 14.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 14.9%, annual interest rate (fixed) 14.85%, 47 monthly payments of £204.69 followed by 1 payment of £214.69 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,335.12, total amount payable is £9,835.12.

My Car Credit is a credit broker and not a lender.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

7 Factors That Can Affect Your Credit Rating

2 women happy knowing what affects their credit scores

Credit ratings can be complex and at times, extremely frustrating. Even the smallest financial hiccups can leave a lasting footprint on your score. This means that a few missed credit card payments over the years or an outstanding mobile phone debt can compromise your application.

This is why it’s so important to develop a good understanding of your credit rating and the various factors that can affect your score. So, what can affect credit rating? Read on for our guide to factors than can influence your rating, as well as tips on how to boost your score.

Understanding credit ratings

Before we dive in let’s take a look at what credit ratings are and why they matter. Basically, credit ratings are used by prospective lenders to evaluate the overall credit risk of a debtor. Historic financial data is used to predict a borrower’s ability to pay back a debt and calculate the risk of defaulting. A particularly bad credit rating could see some applications rejected. In some cases, it could even rule you out of the lowest rate products.

The latest data from multinational consumer credit reporting agency Equifax reveals just how stubborn credit scores can be. Equifax report that the average Brit is issued with a score of 380. This is considered a ‘fair’ score but is just one point away from the 280-379 category which is considered ‘poor’. The perfect score is 700, suggesting everyday borrowers aren’t necessarily as upstanding as you might think. 

Here’s some of the most common factors that can affect your credit rating:

1. Payment history

Keeping up with your credit card payments is one of best ways to build a good credit score. Even making the minimum monthly payment shows lenders you’re a responsible borrower. It also demonstrates that you can commit to a long-term loan. Missed or late credit payments can tarnish your credit score for up to three years. This is why it’s so important to stay on top of your repayments wherever possible.

2. Hard credit inquiries

Carried out by established financial institutions, hard credit checks dig deep into your credit history. They’re used to help creditors make lending decisions. Hard searches are often carried out when applying for larger loans such as mortgages, credit cards and car loans.

While a hard check or two will only lower your credit score by a few points, frequent checks can damage your score and present you as a higher-risk customer. This is because multiple applications suggest you’re chronically short on cash. It could even indicate that you have an irresponsible attitude towards debt. Hard credit checks can leave a mark on your report for around two years. It’s important to consider if you really need one before authorising a full application.

3. Being registered to vote

Lenders will often turn to the electoral roll as a quick and easy way to verify your name and address. Access to government-certified information is also an effective way for lenders to protect themselves against fraud. Failure to register or update your information can affect your credit score by up to 50 points. This can have a significant impact on finance applications.

4. Mobile phone contracts

While mobile phone contracts may seem like a sundry expense, they can have a big impact on your credit score. Like credit card repayments, staying on top of your phone contract is a good way to strengthen your credit score. This is great way of showing lenders that you can commit to a regular payment schedule.

5. Finances of a partner

If you’re married or in a long-term relationship, the finances of your partner will often be factored into your credit score. In some cases, joining forces can strengthen your application. However, if your partner has a ‘thin’ credit history, it may be best to disassociate yourself from them financially.

6. Borrowing percentages

Credit cards can be a good way to build a strong lending history. However, maxing out your cards can have a negative impact on your application. As a general rule of thumb, it’s best to keep your card borrowing below 25%, unless you plan to pay off the full amount every month. This shows lenders you’re responsible and realistic about the money you borrow, and your ability to pay off debt.

7. Utility bills

More than half of major energy providers are now sharing customer data with credit agencies. This makes is essential to maintain good standing with companies such as British Gas and EDF Energy. Utility bills are another good opportunity to establish a good track record with lenders and boost your credit score.

Factors that won’t affect your credit score

We’ve covered some of the biggest factors that will affect your credit score. Now let’s take a look at some of the things that won’t drag you down.

1. Your salary and disposable income

It’s a common misconception that high salaries translate to better credit scores. In fact, lenders are far more interested in how you manage your debts than how much money you earn. For example, an applicant who earns £35,000 a year and pays off their credit card in full every month is far more appealing than an applicant who earns £100,000 a year and has maxed out their credit card and defaulted on several payments. 

2. Soft credit checks

While hard credit checks can leave a lasting footprint, their soft counterparts won’t affect your credit rating. What’s more, they can still give lenders a good overview of your credit history. They’re also known as ‘eligibility checks’ and are great for establishing the likelihood of acceptance before committing to a hard check.

3. Previous mistakes

Losing sleep over a mortgage you deferred on several years ago? Stressing about a credit card that got out of control in your twenties? The good news is mistakes you’ve made in the past don’t always stay around to haunt you.

For example, County Court Judgments (CCJ) issued when a borrower fails to repay money will stay on your record for up to six years. The good news is that they will automatically be removed after that period.

Black marks like Debt Relief Orders or Individual Voluntary Agreements (IVAs) can also have a negative impact on your credit score but won’t necessarily stay on your record forever.

Buying a car with poor credit

Need help securing a car loan? Whether you’re struggling with poor credit car finance or simply need assistance getting the best interest rates, we’re here to help. At My Car Credit we offer tailored car finance to applicants with all types of credit histories. Thankfully, this includes those with less than perfect scores. Get in touch today by emailing enquiries@mycarcredit.co.uk to find out more. We’ll help you secure the keys to your new vehicle as quickly as possible.

Rates from 6.9% APR. Representative APR 14.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 14.9%, annual interest rate (fixed) 14.85%, 47 monthly payments of £204.69 followed by 1 payment of £214.69 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,335.12, total amount payable is £9,835.12.

My Car Credit is a credit broker and not a lender.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

What’s the Difference Between Bad Credit & Poor Credit?

Woman at work checking her credit profile on her phone

Credit scores are a prerequisite for a number of financial processes, from loans and car finance to mortgages and tenancy agreements. In short, they show how well you have managed credit in the past, giving companies an indication of how trustworthy you are to keep up with payments on their products or services.

If your credit score is good, very good or exceptional, that will probably be the last you hear about it. But what if your credit score is bad or poor? These slightly vague terms may lead to more challenges with getting the loan, finance or even accommodation you need.

So, what do they actually mean? And is there a difference between bad and poor credit?

Defining bad and poor credit

Credit scores are a numerical representation of your credit history, taking into account various factors like paying your bills on time, carrying balances over on your credit card and even the number of credit checks on your record. The result is a three-digit number which is ranked from very poor or poor to excellent or exceptional, depending on the system.

Two of the most popular systems, VantageScore and FICO Score both use a scale of 350 to 800. With FICO score, 300-570 is poor while 580-669 is fair. Using VantageScore, 300-499 is very poor, 500-600 is poor and 601-660 is fair.

With both systems, from fair downwards is classed as a ‘bad’ credit score, which is why you might hear this broad term used. In short, it refers to anything below a good score, which is a cut off point for some lenders. Within this, there are sub-categories of bad credit like fair, poor and very poor credit, which refer to more specific ranges.

The other meaning of bad credit

The use of the term ‘bad credit score’ admittedly causes some confusion, because bad credit also has another similar meaning. Bad credit refers to a history of managing credit poorly.

If someone has continuously paid bills late, missed payments or built-up debt on their credit card, they will be said to have bad credit. The same is true for companies, who can have bad credit if they have a history of debt and late payments.

How will bad and poor credit affect applications?

The difference between a bad credit score and a poor credit score will matter most when you’re applying for any form of credit. As mentioned, some lenders will draw the line at bad credit, refusing to lend to anyone whose credit history isn’t good or above.

Others will happily lend to those with a ‘bad’ credit score as long as it is still rated as ‘fair’. Thankfully, there are also plenty of lenders who will still offer their services to people with a poor credit score. That means you can get car finance with a poor credit history, as well as other services such as loans or tenancy agreements.

Moving on from poor credit

At My Car Credit, we understand that poor credit doesn’t always mean you’re a bad applicant. A bad or poor credit score can be down to a number of factors, all of which can be changed over time. That’s why we aim to make buying a car with poor credit easier.

With a network of 27 trusted lenders, we’re committed to finding a fair deal for all customers, whatever their credit history. To find out more, contact us today on enquiries@mycarcredit.co.uk.

Rates from 6.9% APR. Representative APR 14.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 14.9%, annual interest rate (fixed) 14.85%, 47 monthly payments of £204.69 followed by 1 payment of £214.69 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,335.12, total amount payable is £9,835.12.

My Car Credit is a credit broker and not a lender.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

4 Factors That Impact the Cost of Car Finance

New car bought using car finance

Car finance is a great way to spread the cost of a new car. What’s more, it allows you to get a better vehicle and potentially save money on repairs and replacements in the long run. However, the cost of car finance itself can vary quite a bit. This depends on a number of factors, which we’ll discuss in this post.

1.   Cost of the car

The most obvious factor that affects the cost of car finance is the value of the car you’re looking to buy. Car finance is essentially a loan that you take out to pay the dealership or seller. The higher the value of the car, the more money you’ll need to borrow. This will make the monthly repayments higher as well as adding to the interest you’ll need to pay. So, to minimise the cost, more affordable cars are better.

2.   Credit score

Next on the list is your credit score. There are of course plenty of lenders which will provide car loans for poor credit. However, the score itself may affect the rate of interest which lenders will offer you.

Customers with good credit scores are seen as a safe bet, meaning lenders will be able to give them the lower interest rates. On the other hand, those with bad or poor credit scores are a bit more of a risk for lenders. As a result, they may need to pay a higher interest rate to balance out the risk to the lender.

3.   Length of repayment

Much like a standard loan, car finance can be taken out over a variety of repayment terms. Given that cars are quite a large purchase, 24 months is typically the minimum term for car finance. Alternatively, you might want to spread the cost over a longer period such as 36 months (3 years), 48 months (4 years) or even 60 months (5 years).

Paying back your car finance over a shorter term like 24 months will make the monthly cost of car finance higher. This is the result of the cost being spread over fewer instalments. However, it will generally reduce the overall cost of car finance because you will be paying the money back sooner, incurring fewer interest charges.

4.   Car finance provider

This brings us to another consideration – the provider you choose. Interest rates are one of the biggest factors when it comes to the cost of your car finance. Put simply, this is the cost added on to your loan over time as a charge for lending you the money.

Interest rates vary depending on which provider you choose, which is why it’s important to do your research before applying for car finance.

Car finance for poor credit

If you want to find a good deal on poor credit car finance, don’t hesitate to get in touch with My Car Credit. We use a large panel of trusted UK lenders to find a fair deal for all applicants. This allows you to minimise the overall cost for your new car and spread it across a repayment term that suits you.

Rates from 6.9% APR. Representative APR 14.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 14.9%, annual interest rate (fixed) 14.85%, 47 monthly payments of £204.69 followed by 1 payment of £214.69 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,335.12, total amount payable is £9,835.12.

My Car Credit is a credit broker and not a lender.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

Do Credit Checks Affect Your Score?

Woman happy after checking her credit score

Credit checks are a necessary step for all types of credit applications including loans, car finance and home tenancy agreements. But for those who are already concerned about their credit rating, there is an understandable worry that the check itself might do damage to your score.

In this post, we’ll clear things up when it comes to credit checks and how they affect your score in the UK.

What is a credit check?

In short, credit checks are a way of checking your history, behaviour and associations when it comes to credit. They look at:

  • What credit you’ve taken out
  • Whether it’s been paid back
  • When it’s paid back (on time and regularly or late and irregularly)
  • Financial associations – including people with whom you share joint bank accounts or mortgages

Aside from checking your credit score online, credit checks can be broken down into soft and hard credit checks, which refer to the level of detail being assessed.

As the name suggests, soft credit checks take a brief look at your credit report to get an idea of your behaviour. These are typically an initial step in the application process to get a better idea of whether you’ll be successful.

On the other hand, hard credit checks are a comprehensive assessment of your credit history. These will typically be performed later in the process, as a final step to approve your application.

Do they affect your credit score?

Credit checks are one of the many factors that affect your credit score. But it depends on the type of check being done. Soft checks are not visible to other companies, so they won’t affect your credit score going forward. The same is true when checking your credit report yourself.

However, because hard credit checks are only done when companies are considering you for an application, they can have an impact on your score. Hard credit checks will be visible on your report, and too many in a short space of time could reduce your chances of being approved for credit. This is particularly true where your application for credit has been unsuccessful. However, the initial soft credit check should help you avoid this situation.

How we check your credit score

At My Car Credit, we only perform a soft credit check initially, to make sure there’s no impact on your credit score. This gives us a better idea of whether you’ll be successful before proceeding with the application. This in turn enables us to provide poor credit car loans to more people across the UK.

Rates from 6.9% APR. Representative APR 14.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 14.9%, annual interest rate (fixed) 14.85%, 47 monthly payments of £204.69 followed by 1 payment of £214.69 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,335.12, total amount payable is £9,835.12.

My Car Credit is a credit broker and not a lender.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!