Questions and Answers: Reclaiming Car Finance

How can I monitor my credit score during and after the mis-selling claim process?

It's important to monitor your credit score throughout the car finance mis-selling claim process. Here's how:

1. Check your credit report regularly:

  • You're entitled to a free credit report from each of the three main credit reference agencies in the UK: Experian, Equifax, and TransUnion.
  • You can stagger these checks throughout the year to monitor your credit score more frequently.
  • These reports will show details of your credit accounts, including your car finance agreement.

2. Look for changes to your car finance account:

  • During a mis-selling claim, the car finance company may place a temporary marker on your credit report to indicate a dispute.
  • This marker shouldn't necessarily damage your credit score, but it's good to be aware of it.

3. Be mindful of additional credit applications:

  • While your mis-selling claim is ongoing, it might be wise to avoid applying for new credit cards, loans, or other forms of finance.
  • Multiple credit applications within a short period can negatively impact your credit score.

4. Resources for monitoring your credit score:

  • Several free services allow you to check your credit score regularly.
  • These services are usually offered by credit card companies, comparison websites, or current account providers.
  • Be sure to read the terms and conditions before using any free credit score monitoring service.

Here are some additional points to remember:

  • A mis-selling claim shouldn't automatically damage your credit score.
  • However, it's wise to be proactive and monitor your credit report to stay informed.
  • If you're concerned about the impact of a mis-selling claim on your credit score, you can talk to a credit expert for free guidance from organisations like the National Debt Line or Citizens Advice Bureau.

Please note: This information is for general guidance only and shouldn't be taken as financial advice.
2024-05-27 08:30