How to Repair Your Credit

repair credit car finance characters

Rates from 28.5% APR
39.7% Representative APR -
Subject to status and affordability

How’s your credit score looking? Are you searching for credit repair options that can help to improve the number? One way to bring your score back up is to make regular repayments on car finance. However, it’s not always easy finding a way to do this as lenders look at your credit history and this can influence whether your finance is agreed or not.

If you’ve been putting off buying a car because you’re worried about bad car credit, you can begin your search here. We specialise in helping those with poor credit get on the road, and when you choose Go Car Credit, you could begin to repair your score, too.

Whether you’ve had financial issues, CCJs or had to default on payments, we will still consider you for hire purchase on one of our used cars from one of our approved UK dealerships. To find out more about how you can get a car and repair your credit score at the same time, we’ve created a guide that will set you off on the path that could boost your rating.


Representative example – Total amount of credit £8000, annual interest rate 20% (fixed), charge for credit £6711.44 (£6406.44 interest, £295 admin fee and £10 option to purchase fee), total amount payable £14711.44. Loan term of 48 monthly instalments, 47 payments of £306.28 and 1 final instalment of £316.28. 39.7% Representative APR – Subject to status and affordability


What is a credit rating?

Before you start looking through your options, it’s important that you understand credit reports, scores, and how these impact on the decisions made by lenders. Even if you have an idea of how this works, it’s worth reading on as there are several ways this affects you.

Here are some key terms and their definitions to be aware of if you want to get to grips with credit repair:

Credit score

Your credit score – or credit rating – is a figure that is created from your credit report. This score is a tool that lenders use to decide whether they can go ahead and provide you with a loan, credit or service.

Credit report

The report is a record of your credit history. It lists how you’ve managed your debts and credit in the past and this then gives lenders the opportunity to decide how much of a risk you are when you apply for their credit card, loan or service.

Credit reference agencies

There are three credit reference agencies used in the UK: TransUnion (formerly known as Callcredit), Equifax, and Experian. These are important to be aware of if you are focussing on credit repair. These companies all have information about your credit history and lenders will use at least one to check your current score and report before going ahead and loaning you money or providing you with a service.

If you know the referencing agency used by the company you’re applying to, it’s worth checking your report with that agency to make sure your details are correct as information can be missed or incomplete. It can also be useful to check your reports with all three agencies once a year as they can all influence your applications for credit. As we provide a service, we use credit referencing agencies.


Who has the best credit score?

So, when it comes to good and bad scores, where do you fit in? How does your rating match up with the wider picture? If you’re trying to repair your credit score, you’re not alone. According to a 2019 survey by Experian, older people generally have better scores than younger people, with those aged 55 and above scoring an average of 841, while those aged between 26 and 30 have the lowest score (739).

It may be that you fall into a low-scoring category. It may be that you buck the trend. Wherever you fit, it’s possible for any of us to end up with bad credit due to anything from missed payments to clerical errors. It is also possible to repair your rating, however.



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Why is your credit file so important when choosing car finance?

Car finance is one of the services that form part of your credit report. It’s a service that offers a product for money that’s paid back in instalments. Therefore, if you’re planning to buy a car on finance, your credit file will be checked to see how you’ve handled credit in the past. So, should you have a low score, this can influence whether you’re accepted for finance or not.

But just because you’ve got a poor credit rating, that doesn’t mean you can’t apply for car finance. We are skilled in securing credit for people with bad credit. We prefer to decide based on factors such as your employment, current income and what you can afford. We’ll discuss what sort of repayment plan could work for you so that it’s affordable.

While we can’t guarantee you’ll be accepted for car finance, this is one financing option that could suit you if your rating is poor or you’ve missed payments before now. Hire purchase could be suitable for those who are trying to repair their credit score.


What’s hire purchase car finance?

Hire purchase gives you the chance to buy your car without having to pay for the amount in full before you can drive it. You’ll be hiring your motor from us and your purchase is secured against the car itself. So, the car is legally owned by Go Car Credit and you will be the named owner while you make fixed monthly payments across a set amount of time. Once you’ve paid the car’s value plus the amount of interest in full it will be yours.

If you can’t make the repayments due to an unexpected change in circumstances, we’ll work with you to find out how to resolve the issue. As a last resort, we can repossess the car, but there are steps we’ll take before reaching that point.


Can taking a car out on finance help with credit repair?

As with any type of personal finance, choosing to buy your car via hire purchase will impact on your credit file. Keeping up with the repayments means that you could gradually repair your credit file.

Of course, other factors influence your overall figure. Being accepted for car finance with us and sticking to the agreed schedule and agreed payments, you could make a difference to your credit score in a positive way.

You can get an idea of timings and how much this could all cost when you use our car finance calculator. This will help you plan out what sort of deal you could get for your car with us, along with a timetable of payments. Keeping to this payment schedule could help make a difference to your credit score.


Simple ways to repair your credit score and make an application for car finance

Even if you have bad credit now, there are some simple ways to potentially improve your chances of getting accepted for car finance with us – and begin to repair your rating – before applying:

  • Register on the electoral roll. This shows that you’re settled in the area you live in
  • Try to make sure you keep all outstanding debt payments up to date and on time

Repair your credit score with Go Car Credit

As a legitimate car finance provider, we can’t promise that your application for finance with us will be approved. But we won’t just dismiss your application because you have a poor credit rating. In fact, by choosing Go Car Credit, you could get a great hire purchase deal for a car that slots nicely into your life with the added benefit of repairing your credit score, subject to status and affordability checks.


Why choose Go Car Credit to help repair your credit score?

We understand the cycle you’re in. You want a new motor on finance but have a bad credit score so aren’t likely to be approved, but by taking out a car on finance you can rebuild your credit rating and get your finances back in order. Unlike other car finance providers, we could help you get back behind the wheel.

As well as helping you get car finance suitable to your budget and the potential to help with credit repair, there are more reasons why we could be the right option for you. These include:

  • Responsible lending: We work with you to find a repayment plan that you can realistically afford. As we’re regulated by the Financial Conduct Authority, we follow their recommendations and only offer what you can pay back
  • No hidden extras: All costs, terms and conditions are explained to you, so you won’t have to worry about having any nasty extra charges sprung on you such as admin fees
  • Highly recommended: Our ‘excellent’ rating on Trustpilot is based on lots of independent customer reviews
  • Easy application: Apply online in a few minutes and you’ll hear from our friendly team rather than a computer

Will my repayments be higher because I have a bad credit score?

Interest rates do tend to be higher if you have experienced bad credit history. This is usually because you could be seen as a higher risk to the lender.

Our car finance agreements are personalised to suit your finances and takes your income and outgoings into account. It’s important to note that the car you choose, along with the cost of insurance, fuel, MOT and road tax will all have an impact on how affordable it is. Once you know what we have come up with and agreed on the terms, you could begin the journey towards credit score repair.

Speak to us

Take your pick from a range of quality used cars at one of our approved dealerships in our UK network. We’re located across the map, from Portsmouth to Glasgow. Call our expert team on 01925 696 373 to chat about the car you want and your current situation.

Apply Now

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