Credit scores

Your credit score evaluates your creditworthiness, based on your spend history – it accounts for things like whether you’ve kept on top of finance repayments and how much you’ve borrowed.

Lenders, like Oodle, use credit scores to figure out how reliable you are at borrowing and repaying money. They use your credit score as one of the ways to decide whether to lend to you at all, and how to structure the finance arrangement if your application is successful. 


But what exactly is it, how is it calculated and what can you do to improve your credit score if you’re struggling to get car finance?

Soft credit check
Soft credit check

What is a credit score?

A credit score is a three-digit number that normally ranges between 300-999. The number is used by lenders to determine your creditworthiness and as an indicator of your future payment performance. 


As a rule of thumb, the higher your credit score, the better your chances of being accepted for credit, and at a more attractive rate. Your credit score influences your chances of getting:

Credit cards, loans, and mortgages

Mobile phone contracts

Insurance instalment plans

Retail credit

If you have a lower credit score you might still be able to get credit but you are likely to have a higher interest rate than someone with a high credit score.

Credit score

How do credit scores impact car finance?

Car finance companies want to know about your credit history in order to evaluate how likely you are to pay your instalments for your car. A car can be quite a big purchase, so your lender needs to be sure that you’ll keep on top of your repayments.


They will refer to your credit score when deciding whether to approve your finance, and how to structure your interest and terms. Generally speaking, higher credit scores are associated with lower interest rates, meaning you pay less overall.

A man looking at his credit score which is 608.
A man looking at his credit score which is 608.

01

Get hold of a copy of your credit file and check your details. If you find any mistakes you are entitled to have them corrected.

02

Make sure you are registered on the electoral roll (registered to vote) at your current address.

03

Pay all your bills on time and in full each month. Lenders are looking for a strong track record of paying bills on time so this is not a quick fix but it is key to having a good credit score. Paying by direct debit can help ensure payments do not get missed.

04

Don't be tempted to 'max out' your credit limits. Lenders do want to see credit being used sensibly so having some credit actually helps (it shows you can handle credit successfully) but just because you have available credit does not mean you have to use all of it. Using too much of your available credit is likely to reduce your credit score whereas having unused credit is likely to improve it.

A man looking at his credit score which is 608.
A man looking at his credit score which is 608.

Commonly asked questions

How do I know whether my credit score is good or bad?

How do I know whether my credit score is good or bad?

How do I know whether my credit score is good or bad?

Does checking a credit score lower it?

Does checking a credit score lower it?

Does checking a credit score lower it?