What happens when a poor credit score could cause drivers to pay a steep price
A poor credit score can cost you up to an extra PS8,000 when you finance one of the most sought-after vehicles, according to recent research from Uswitch.com.
For instance, the most popular Ford Fiesta costs PS16,645 to purchase outright. If it is purchased by financing with a 4-year payment period, the price for a buyer with a high credit score is PS20,014 or a great PS7,059 (PS27,073 in total) for someone with a poor credit score.
The data was gathered by comparing and switching by employing a car finance calculator to calculate the price of 10 vehicles purchased on credit for people with various degrees of credit score.
The cost of financing the 10 most popular vehicles
| Popularity rank | Car Model | List Price | Finance cost with excellent credit rating | Finance cost with fair credit rating | Finance cost with bad credit rating | Difference between excellent and bad credit score |
| 1 | Ford Fiesta | £16,645 | £20,014 | £23,673 | £27,073 | £7,059 |
| 2 | Ford Focus | £22,215 | £26,778 | £31,672 | £36,221 | £9,443 |
| 3 | Vauxhall Corsa | £16,815 | £20,269 | £23,974 | £27,417 | £7,149 |
| 4 | Volkswagen Golf | £23,360 | £28,158 | £33,305 | £38,089 | £9,931 |
| 5 | Vauxhall Astra | £19,185 | £23,125 | £27,352 | £31,281 | £8,156 |
| 6 | Volkswagen Polo | £17,355 | £20,920 | £24,743 | £28,298 | £7,378 |
| 7 | BMW 3 Series | £32,595 | £39,290 | £46,471 | £53,147 | £13,857 |
| 8 | Nissan Qashqai | £23,555 | £28,393 | £33,583 | £38,407 | £10,014 |
| 9 | Toyota Yaris | £19,915 | £24,005 | £28,393 | £32,472 | £8,466 |
| 10 | Mini Cooper | £27,115 | £32,684 | £38,658 | £44,211 | £11,527 |
Set goals for improving your credit score
James Andrews, the personal finance expert on Uswitch.com, provides tips on ways to boost your credit score so that you negotiate the best price for a vehicle purchase on financing: "Registering to vote, paying bills on your behalf, and limiting your credit limit at least 30% of your total credit available (per credit card) and having no credit history all affect your score on credit.
"When financing a car, you should first look over the credit reports to determine your score. Then, verify what's there and make sure that it's accurate. Finally, it would be best if you began taking steps to increase your score.
"Providing that you pay your debts promptly, don't sign up to many new products in the span of a few months (e.g 6 months) and maintain an address that is stable and your credit score will improve. Within four months, your credit scores improve , and by the end of the year you'll be in much better standing."
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