Your car finance leaves a mark

Settling early, handing the car back and missing a payment all show up differently. Worth knowing which one you are choosing.

See what your car finance is doing to your credit file

  • How settling early, ending early and defaulting each report
  • Where to check all three agencies for free
  • How to get something corrected if it is recorded wrongly

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What each one looks like on a credit file

Paid as agreed

The agreement closes as settled, having run its course. This is the version lenders like, and a completed agreement can help rather than hurt.

Settled early

Recorded as settled, with the closure date earlier than the original term. Generally read neutrally, though a very short account history gives a lender less to go on.

Ended early by you

Ending an agreement under your statutory right is recorded and is visible. It is not a default, and it should not be described as one, but it is not invisible either.

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Missed payments and defaults

These are the marks that carry real weight, and they persist for six years from the date recorded. If you are heading towards one, talking to the lender early usually gives you more options than waiting.

Check it yourself first

You are entitled to see what the credit reference agencies hold about you. Statutory reports are free, and several services show the same data at no cost. Look at all three main agencies, because lenders do not report to every one of them.

If something is recorded wrongly, you can ask for it to be corrected. That is a right, not a favour, and it does not cost anything to exercise.

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See what your car finance is doing to your credit file

  • How settling early, ending early and defaulting each report
  • Where to check all three agencies for free
  • How to get something corrected if it is recorded wrongly

Free. Choose email, text, or both. Unsubscribe from any message.

Motor Moola is a free newsletter about running a car. Choose how you would like to hear from us.

Your details are stored securely. You can ask to see the record we hold, or withdraw any of these permissions, at any time.