Late or missed car finance payments may be reported to the main UK credit reference agencies and could remain on your credit file for up to six years. This can negatively affect your credit score and may make it more difficult or more expensive to access credit in the future, while keeping your payments up to date can help maintain a healthier credit profile.
A missed payment may affect future borrowing decisions, with lenders potentially offering different terms, higher interest rates, or declining an application depending on your overall financial circumstances. The impact can vary depending on how late the payment is, whether the account returns to good standing, and if arrears continue over time.
If you are experiencing difficulties keeping up with your car finance payments, it is important to contact AutoMoney Trust as soon as possible. Speaking to us early gives the opportunity to understand your situation and discuss what support or options may be available before payments are missed.
Keeping your finance agreement up to date and making payments on time can help maintain a healthier credit profile. For more detail on how lenders review applications, see our guide to credit checks for car finance.
If you're worried about making your next car finance payment, contact AutoMoney Trust as soon as possible, ideally before the payment is due. Speaking to us early allows us to understand your circumstances and discuss the support or options that may be available before your account falls into arrears. Taking action early can help reduce the impact on your finance agreement and improve the likelihood of finding a suitable solution.
Depending on your circumstances, we may be able to discuss short-term payment arrangements or signpost you to free, independent debt advice if appropriate. Speaking to us before you miss a payment can often lead to better outcomes than waiting until your account falls into arrears.
Missing car finance payments can affect your credit file, result in default interest or other applicable charges, and, if the situation remains unresolved, could put your hire purchase agreement at risk. Acting early may help minimise these impacts and keep your agreement on track.
At AutoMoney Trust, we treat every conversation in confidence and are committed to treating customers fairly. If you're experiencing financial difficulties, we'll work with you to understand your circumstances and explore a suitable way forward wherever possible.
Car finance can affect your credit score positively or negatively depending on how you manage your agreement. Making regular, on-time payments can help build a positive credit history and demonstrate responsible borrowing, while late or missed payments can negatively affect your credit score and make it more difficult or expensive to access credit in the future.
If payments are not made on time, they may be reported to credit reference agencies, which can lower your credit score and make future borrowing more difficult or potentially more expensive.
When you apply for car finance, a lender may carry out a hard credit search, which appears on your credit file and can cause a small, temporary change to your credit score. This is a normal part of the application process and helps lenders assess whether finance is affordable and suitable for you.
For more information about how applications are assessed, read our guide on Credit Checks for Car Finance.
Continued missed payments can lead to arrears, damage your credit file and, in some circumstances, repossession of the vehicle.
If you fall behind on your car finance payments, AutoMoney Trust will contact you to understand your situation and discuss the support available. If you are struggling to maintain your payments, it is important to get in touch as early as possible, as we may be able to help you understand your options and prevent your account from falling further into arrears.
Ongoing missed payments may result in default interest, reminder letter fees, and information being reported to credit reference agencies. A record of missed payments could remain on your credit file for up to six years, which may affect your ability to obtain credit in the future.
If car finance arrears remain unresolved, your hire purchase agreement may be terminated and steps may be taken to recover the vehicle. However, under UK law, if you have paid at least one-third of the total amount payable under your agreement, a court order is generally required before the vehicle can be repossessed.
If the vehicle is repossessed and sold, you may still be responsible for any remaining balance if the sale proceeds do not cover the amount outstanding on your car finance agreement.
If you are experiencing financial difficulties, please contact AutoMoney Trust as soon as possible. You can also visit our Existing Customers page for more information.
Yes, you can apply for car finance with a low credit score. AutoMoney Trust considers applications from customers with lower credit score, and having a low score does not automatically prevent you from being considered for finance. Each application is assessed individually based on your wider financial circumstances and affordability.
We understand that a credit score does not always provide a complete picture of your financial situation. That's why we also consider factors such as affordability, income stability, existing financial commitments and recent credit conduct when reviewing your application.
Having a low credit score does not automatically mean you will be unable to get car finance. However, it may affect the finance options available, including the rate offered or the amount you may be able to borrow. All applications are assessed individually and remain subject to status, affordability checks and our lending criteria.
If you are looking for car finance with a low credit score, you can explore your options with AutoMoney Trust by completing an online application. Our initial assessment helps you understand whether finance may be suitable for your circumstances, with a decision available in minutes.
