How to Improve Your Credit Score Before Applying for Car Finance
Your credit score plays a major role in whether you get approved for car finance—and the kind of deals you’ll be offered. A higher score can help you unlock lower interest rates, more favourable terms, and a wider choice of lenders. The good news? You don’t need perfect credit to secure a finance deal. With a few smart moves, you can improve your credit score before applying—and increase your chances of getting approved. Here’s how to start improving your credit profile today.
Motor Finance Today
Author
July 17, 2025
Why Does Your Credit Score Matter When Applying for Car Finance?
Lenders use your credit score to determine how likely you are to repay borrowed money. A strong credit history gives lenders more confidence, which can lead to:
Lower interest rates
Higher borrowing limits
Faster approval times
If your credit history is patchy or you’ve faced financial difficulties in the past, improving your score can open up better finance options. It’s not an overnight fix—but it’s worth the effort.
1. Review Your Credit Report for Mistakes
Start by checking your credit file with the UK’s three main credit reference agencies: Experian, Equifax, and TransUnion.
What to look for:
Incorrect addresses or outdated personal information
Accounts that don’t belong to you
Missed or late payments listed in error
Mistakes can harm your score unnecessarily. If you find anything wrong, raise a dispute with the credit agency—it could make a positive impact fairly quickly.
2. Register on the Electoral Roll
Being listed on the electoral register at your current address helps lenders verify your identity. It’s a simple but effective way to give your score a quick lift.
✅ Pro tip: You can register online in minutes at gov.uk/register-to-vote — and it’s completely free.
3. Always Pay Your Bills on Time
Late or missed payments are one of the fastest ways to damage your credit rating. Whether it’s a credit card, mobile bill, or utility payment, make sure everything is paid on time—every time.
💡 Quick tip: Set up direct debits or calendar reminders so you never miss a due date.
4. Keep Your Credit Utilisation Low
Your credit utilisation ratio is the percentage of your available credit that you're using. Keeping this figure low shows lenders you're managing your borrowing responsibly.
📊 Aim for under 30% usage.
For example, if you have a £1,000 credit limit, try to use no more than £300 at a time.
5. Limit New Credit Applications
Every time you apply for credit, a "hard search" is recorded on your file. Applying for several types of credit in a short time can temporarily lower your score and raise red flags for lenders.
🛑 Avoid unnecessary applications—especially in the months leading up to a car finance application.
Bonus Tip: Use a Credit Builder Card
If your credit history is limited—or you’re trying to rebuild after past issues—a credit builder card can help improve your score.
Use it for small purchases and always pay the balance in full to avoid interest charges and show responsible credit behaviour.
Thinking About Applying for Car Finance?
At motorfinancetoday, we believe everyone deserves a fair chance at owning the car they need—regardless of past financial challenges. Whether you’ve got excellent credit or you're still working on it, we work with lenders who look at the full picture.
✅ No-pressure quotes ✅ Options for all credit types ✅ Quick and easy application
