If you think about it, debt and credit scores share the same analogy as the chicken and the egg! One is necessary for the other.
You build credit history only if you have a running loan, or some balance on your credit card. This “debt” enables the credit rating agencies to work out a credit score for you. So what happens if you have no debt…do you have no credit score? Well actually yes. If you have no history of paying off debt it’s difficult to give you a score.
There are many ways in which you can improve your credit score – the Money Advice Service gives some great advice https://www.moneyadviceservice.org.uk/en/articles/how-to-improve-your-credit-rating
Leasing a car is another option to consider if you want to improve your credit score.
Of course the most important thing to be sure of is that you can afford the rentals on any finance you are applying for – we can’t stress this enough.
Most of us need a reliable car to get to and from work and the option of driving a brand new car takes away not only parental worry of your son or daughter driving an ‘old banger’ but the concerns of ongoing maintenance costs and hidden, costly, extras.
With many of our deals coming in around the £100 a month mark for repayments, a new car isn’t a luxury anymore. To find out more about applying for finance to lease a car from wwwcarcontracthire.com please visit our FAQs www.littlegreencarleasing.com