Which Car Finance Companies Run Credit Checks with Experian?

Why do car finance companies need credit referencing agencies like Experian? Credit reference agencies provide credit reports and other information that car finance companies need so that they can assess loan applications of car buyers. In the UK, there are three main agencies that provide this service to lenders and financial institutions - Equifax, Experian, and TransUnion. 

What are Credit Reference Agencies?

When you apply for credit such as car financing, credit card, or mortgage, the lender will check your credit history through a credit reference agency. Doing so allows the lenders to assess your application and arrive at a fair decision on whether to grant you credit. Checking each application this way will also help them against anyone who may apply using false information.

Credit reference agencies keep details regarding your financial history, which includes whether you’re a registered voter, any insolvencies, bankruptcies, court judgements, as well as your current and past loans and repayment histories. Early on, it’s important to keep your credit history excellent so that it will be easier for you to apply for car finance.  

What is a Credit Report?

Credit reports contain a person’s information such as their name, addresses, and financial histories like loan and bill payments. Credit reference agencies keep track of these pieces of information which they then share with lenders and financial institutions to evaluate loan applications. 

Once an individual reaches the age of 18 and already has a mobile phone contract, credit card, or has taken out a loan, then the credit reference agency keeps a record of the person’s credit report, as well as a corresponding credit score. You ought to check your credit report every now and then to check if the financial activities recorded there are accurate and error-free. 

Factors that Impact Your Credit Score

There are a number of factors that can affect how lenders evaluate your car finance application. Some of these factors include your credit history, past debts, any bankruptcies, and others. Let’s take a closer look at how these impact your credit score. 

Credit History

Your credit history has the most impact on your car finance application. It’s important that you maintain timely payments on any loans or credit you may have. If you do this, you’ll be able to build an excellent credit history. It’s proof that you’re responsible when it comes to making payments. This makes lenders see you as low-risk and they’d likely give you credit.

Past Loans and Debts

What if you were unable to pay previous debts? If this is the case, then it will be included in your credit report and it will stay there for at least six years. When lenders see this on your file, they’ll see you as high-risk and will assume that you’re not reliable in honouring your obligations to pay back what you owe. 

Financial Links

Do you have loans or bank accounts with another person? If so, then you are financially linked to that individual. This financial relationship will also have an impact on your credit score. Be sure to check your credit report regularly to see if all your financial links are correct or if there are any fraudulent activities under your name. 

Address History

One of the best ways that you can provide proof of address is by registering to vote. It will be included in your credit report, and lenders will be able to verify that the information you provided in your application is correct. Also, lenders may ask you for your previous addresses for the past three years. It would be better if you don’t move too often because it will affect how lenders perceive your financial stability. 

Which Car Finance Companies Use Experian?

Many car finance companies get information about their applicants from Experian. Along with TransUnion and Equifax, Experian is among the major credit reference agencies in the UK. As for Carmoola, we use TransUnion, so if you want to check your credit score, get the score you have with TransUnion. You can then get an idea of how well your application will fair by knowing your credit score. 

Keep in mind that you will have different scores from different credit reference agencies. It’s possible to have varying records as well, so be sure to check your credit report in case there are mistakes in your financial history. If you see any errors, immediately contact the credit reference agency and make a report. They will then assess your record and change it if there is in fact an error. 

Faster Process for Car Finance Applications

Thanks to credit reference agencies, it’s now possible for lenders and car finance companies to expedite the evaluation process of loan applications. Before there were credit reference agencies, financial institutions had to do the checks themselves. This was a problem because there weren’t any accurate records that would show an applicant’s past loans and repayments. 

Today, car buyers don’t have to wait too long to know the result of their car finance applications. Especially when you apply for financing with Carmoola, you only have to wait a few minutes to know how much you’ll get. Using your smartphone, you can download the app and enter your personal details, as well as verify your identity using your driver’s licence. The result will be available almost immediately. 


Credit reference agencies are helpful to lenders and loan applicants alike. Individuals can check their credit records to see their past financial transactions. They can also know their credit scores and improve them to improve their chances of getting approved for car finance. And if they see any unfamiliar transactions, they can immediately report them to the agency and prevent other types of fraudulent activities that are using their name and information. 

Credit reports make it easier for financial institutions to evaluate every loan application fairly and objectively. That’s why it’s important that you maintain a good financial history so that lenders will see you as low-risk and would more likely grant you credit.