Before you can improve your bad car credit rating, you must first understand what a credit rating is. This is sometimes called a credit score. A credit rating is a measurement finance companies use to determine your creditworthiness. They access some of this information from Credit Reference Agencies. The rest of the information is gained from the details you completed on your application form.
There are 3 major credit reference agencies used by finance companies in the UK. These are Experian, Equifax and Call Credit. Each time somebody completes a finance application this information is recorded and stored. Providing a finance company agrees to share the payment record information of its customers it can access any information the credit reference agency may hold about you.
The amount of personal information these agencies hold is vast. Such things as electoral roll information, county court judgments, bankruptcy, IVAs, defaults, late payments, missed payments, arrangements, voluntary terminations and even the number of credit searches you have had in any given period. In fact any dealing you have ever had with a finance company is recorded.
The next step is to find out what information these credit reference agencies hold about you. They all offer a 30 day free trial offer which allows you to download your credit report as long as you have a credit card in your name. If you do not have a credit card you will have to pay a small fee to get your credit report.
Once you have your credit report you are well on the way to improve your bad car credit rating. The first place to start is making sure you are listed on the electoral roll. If you are not, download a form from http://www.aboutmyvote.co.uk or any other site which allows you to download a form.
If you have had a bankruptcy order registered against you at the end of your bankruptcy period, make sure you apply for a Certificate of Satisfaction. You can obtain one from http://www.insolvencyhelpline.co.uk. This is very important because some car finance providers may ask you to prove you have been discharged from your bankruptcy.
If you have any county court judgements or defaults try to satisfy them. If you cannot pay them off in full make arrangements to pay them off. Some car finance companies look more favourably on people who are making an effort to repay their bad credit.
If you know you have a bad car credit rating, do not walk into a dealership and pretend you have a good credit rating. All that happens is you will have numerous credit searches recorded against you in a few days which will have a negative impact on your credit rating. The best advice is to find a reputable bad credit car finance expert who has the full range of products to offer you and is able to arrange your car finance in a professional manner. Allowing you to choose the car you want to buy, at a payment you can afford but in the strictest confidence.