Financing a car and credit files

fergie_ Forumite Posts: 135
Part of the Furniture 100 Posts Combo Breaker
I had a search first, but I wasn't able to find an answer to something I was wondering about - How is car finance reflected on a credit file?

I know an unsecured loan will show as simply a loan, but what about PCP, Hire Purchase or a loan secured against the car? How about finance provided by the manufacturer on a new car? Also, would a lease car show on a credit file?


  • MorningcoffeeIV
    MorningcoffeeIV Forumite Posts: 1,509
    1,000 Posts First Anniversary Name Dropper
    They'll show as a loan.
  • MalMonroe
    MalMonroe Forumite Posts: 5,783
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    edited 9 February at 9:16PM
    My PCP agreement appears on my reports as a loan. 

    So far it hasn't been detrimental as I've paid the instalments on time every time. 

    I have managed to get two 0% balance transfer credit cards at different times while I've had the PCP, too. Now I just use one credit card for general expenses, mostly groceries and pay it off in full every month. Just to show I am now sensible with my money.

    Lenders mostly just want to know that you can handle credit sensibly. Certainly that's what's happened to me anyway. (Hasn't always been the case, though as I've been in terrible financial trouble in the past.)
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