When you’re scouring the market for car finance, you’ll often find your credit report mentioned. But why is it important? The better your score, better deals will be available to you. Check yours for free with UK Credit Ratings today.
Checking your credit file allows you to easily view your credit score. This lets you see how likely you are to be accepted, when you do decide to go ahead and apply for finance. By simply registering with UK Credit Ratings for free, you can see your score with zero charge.
Seeing where your score lies lets you decide when is the right time for you to apply for car finance. You may find your credit report is excellent – great stuff! And so you’re happy to go ahead. Or your score could be poor to fair. This may lead you to wait a few weeks until you build your score back up again before applying.
Not only can you check your score for free with UK Credit Ratings, but they’ll also give you tips on how to improve it. Helping you to increase your chances of being accepted. Win win!
Don’t apply for car finance blindly. Let UK Credit Ratings help you view, increase and grow your score today. Find more tips & tricks on how to improve your chances of being approved for car finance on the motorly blog.
*Free 14 day trial. If you wish you continue using the service, the monthly subscription is only £19.95. Cancel anytime during the trial with no charge.
When applying for car finance you will often come across the terms soft search and hard search. But what do they mean? And do you know the difference? We are here to clarify this, separating fact from jargon.
what is a soft search?
A soft search checks how likely you are to be accepted for finance, without affecting your credit score. This means a search cannot be seen by lenders. Only you are able to view soft checks on your credit file. So this will not affect a lenders decision.
Think of a soft search as a preliminary check, which calculates the probability of being accepted without performing a full search on your credit report. With this in mind, consumers are able to shop around to find the best deal for them. Comforted by the fact that these searches will not be seen by financial lenders. In theory, this means it doesn’t matter how many searches you have, as they are invisible. Spooky, we know.
However, a soft check is an indication of how likely you are to be accepted for finance. Meaning, the outcome is not always guaranteed when a full hard search is then later carried out.
what is a hard search?
In contrast to a soft search, a hard search can be viewed by lenders when deciding if you are a good candidate for finance. A hard search will check your credit file and leave a mark of this check. Most hard searches will stay on your credit report for 12 months.
Here at motorly we never perform a hard search. Our partners’ only complete a soft search when checking the affordability of finance for our customers. A hard search is only ever done with an individual’s permission when you want to go ahead with a full application.
Obviously, once a complete finance application is submitted by a lender, this will incur a hard check. But at this point, the customer is happy with their proposed financial plan and are simply completing the final stage. You will now have finance in place and be ready to receive your new vehicle. This is the fun part.
apply today
Rest assured when you complete an online finance application with motorly that we only ever perform a soft check. So, whether you are looking for your next car, van, bike or caravan we can help. We are an independent broker that searches the market for you, with zero impact on your credit score. Walk into a garage with your finance approved. What are you waiting for?
Our easy to use online calculator makes this process easier than ever. Simply drag & drop the buttons up or down to suit your needs and reveal your estimated loan and repayment amounts. Fill out our quick quote form and let us find the right vehicle for you. It’s that easy.
Thinking about getting your next vehicle on finance? We have created an easy to use finance calculator to make this process easier than ever. Simply drag & drop the buttons up or down to suit your needs and reveal your estimated loan and repayment amounts. It’s that easy.
The FCA has investigated the car finance industry across the past two years
An incoming commission ban will save drivers £1,100 each.
From this report, it has emerged that certain car dealerships have been earning commission on the interest rate set. This in effect, “creates an incentive for brokers to act against customer’s interests” according to the FCA. Essentially, the higher the interest rate for the customer, the higher the commission the dealership receives. Commissions encouraged brokers and dealerships to act against what is best for customers.
The FCA report published in March 2019 states “some motor dealers are overcharging unsuspecting customers over a thousand pounds in interest charges in order to obtain bigger commission payouts for themselves”. This led the FCA to remove this type of commission. Which will, in turn, save the consumer money when it comes to the types of car finance deals available to them.
Additionally, they have promised to make further changes to how customers are told about these commissions. Ensuring that in the future they are aware of what is being presented to them. This will allow customers to choose the right deal once they have all of the facts.
Adrian Dally, from the Finance & Leasing Association, said this is, “good news for the industry and consumers, as it delivers clear rules and a consistent approach to commissions”.
This is great news for car finance customers and the industry alike. Creating this sense of transparency makes the market landscape clearer for everyone. Making all sides happier by creating better, fairer deals for all. It will also make the market more competitive, presenting customers with the very best options.
The FCA went on to say, “We have found a significant difference in the amount of interest customers pay when taking a motor finance deal arranged through a broker who benefits from a discretionary commission model compared to a flat fee model.”
The Financial Conduct Authority will have completed the plans ready for 2020. Here at motorly, we do not charge a fee for arranging car finance, nor do we make a commission on car finance interest deals. We strive to find our customers the best deal available to them at all times. Another win for motorly customers!
Want to find out more about the different types of car finance? We explain everything here.
