Should I be concerned about the impact of mis-sold car finance on future loan applications?

A mis-sold car finance agreement can potentially affect your credit score, which lenders use to assess your eligibility for future loans and credit cards. However, the impact isn't always negative, and successfully reclaiming mis-sold car finance can even improve your creditworthiness.

Here's a breakdown of the potential scenarios:

If you defaulted on the mis-sold car finance: Defaults, late payments, and County Court Judgements (CCJs) associated with the mis-sold car finance can negatively impact your credit score. This could make it harder to get approved for future loans or lead to higher interest rates.
If you maintained good payment history: Even if the car finance agreement was mis-sold, consistently making your repayments on time can demonstrate responsible credit behaviour. This might not completely negate the negative impact of a mis-selling flag, but it can help minimize the damage to your credit score.
If you claim mis-selling successfully: If your claim for mis-selling is successful, the negative information linked to the agreement should be removed from your credit report. This can significantly improve your credit score and make it easier to obtain future loans on favourable terms.

Here are some resources for further information:

The Financial Conduct Authority (FCA) offers guidance on car finance mis-selling and how it can impact your credit score: https://www.fca.org.uk/
Experian provides information on how to check your credit report and factors affecting your credit score: https://www.experian.co.uk/

It's important to note that every situation is unique. If you're concerned about the impact of mis-sold car finance on your credit score, contacting a credit rating agency or a financial advisor can provide more personalized guidance.