New car? A credit rating will get you the best deal
August will see the new 55 plate car registrations on the roads of Britain but with three quarters of new cars being funded by loans MyCallcredit urges motorists to check their credit rating before they sign up for finance to avoid paying over the odds.
Research from MyCallcredit reveals the deals offered by motor manufacturers, car supermarkets and dealers are not directly related to your own credit history and you may be able to get a better deal by taking an unsecured loan from a different provider.
MyCallcredit director Alison Nicholson, says: "Car Dealers don’t tend to advertise a typical APR because there are other factors in play like how many cars of a particular type they have in stock.
"This can work in your favour if there is a deal on the car you want but it’s always worth checking other sources of finance and your credit rating so you know whether what you’re being offered is a good deal for you.
"The APR’s uncovered by our research into new and used car finance ranged from 0 per cent to 19.9 per cent."
Where to get your credit rating.
Individuals can get their credit rating by logging on to mycallcredit.com and paying £10.49 for a credit report and score. Access to the report and score is given the following day after identity checks have been carried out.
What does your credit rating mean.
MyCallcredit’s provides a rating based on the information that lenders see. The rating ranges from one star to five star and provides an indication of the types of lenders and deals you can expect. However, each lender uses their own underwriting and assesses credit files differently according to their product range.
One star rating
Indicates you probably have difficulty obtaining credit and find credit providers often turn you down. When you are accepted for credit you will often find it will be for offers with higher interest rates.
Two star rating
Indicates you will sometimes be rejected when applying for credit. Where your status determines the rate a lender will charge you will tend to be offered a higher than normal rate.
Three star rating
Indicates you may occasionally be rejected when applying for credit and you may not be able to get all the best deals in the market place.
Four star rating
Indicates you can usually expect to be accepted and are in a position to choose between different credit providers who view you as a low risk.
Five star rating
Indicates you are unlikely to be rejected for credit based on your credit file. Therefore you should be able to take advantage of the best deals in the marketplace.