What is a credit score?
Your credit score is used by lenders to assess the risk when lending you money. It is compiled based on your lending history and your reliability with paying those funds back at the agreed intervals.
Your credit report is compiled by companies known as credit reference agencies (CRAs). There are three in the UK – Experian, Equifax and TransUnion. Each are responsible for creating and holding your credit reports and it is these that lenders will review before accepting your finance
Each CRA has different maximum scores. Experian score you out of 999, Equifax out of 700 and TransUnion offer a maximum of 710. It is important to bear this in mind when assessing your credit score as even with the same information your score will be different across these different services. Importantly, the higher your credit score, the less of a lending risk you are and therefore the more likely you are to be accepted for credit.
However, a perfect credit score alone will not be sufficient to securing finance on your chosen lease car deal. You will need to meet age, license and residency requirements as well as proving affordability.
Was this article helpful?