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Financing a car and credit files

fergie_
fergie_ Posts: 202 Forumite
100 Posts Combo Breaker First Anniversary
in Credit file & ratings
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?

Comments

  • MorningcoffeeIV
    MorningcoffeeIV Posts: 1,946 Forumite
    First Anniversary 1,000 Posts Name Dropper
    They'll show as a loan.
  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
    Ninth Anniversary 1,000 Posts Combo Breaker Photogenic
    edited 9 February 2023 at 10:16PM
    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.)
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
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