Does Trailer Finance Affect Your Credit Score?
Asking about finance doesn't hurt your credit score. Applying can. Here's how credit checks work for trailer finance and how to keep their impact to a minimum.
Enquiring vs applying
Sending an enquiry through this site, or having a broker discuss your options, doesn't touch your credit file. A credit enquiry is recorded when a lender assesses an actual application with your consent. Some lenders and brokers can also do a quote or soft search that doesn't appear to other lenders. Ask which type is being used.
What a credit enquiry does
When a lender checks your file for an application, the enquiry is recorded. Other lenders can see it, and credit enquiries generally stay on your file for five years. One or two enquiries for a genuine purchase are normal and have only a small effect. The problem is several in a short period, which can look like you're being turned down and shopping around.
Talk to a Specialist
Tell us about the trailer and we'll pass your enquiry to a broker who works with it regularly. Free, and enquiring doesn't affect your credit score.
Send an Enquiry →What lenders see on your credit file
- Your recent credit enquiries.
- Your existing loans, credit cards and limits.
- Repayment history on your accounts. Under comprehensive credit reporting, lenders can see whether recent payments were made on time.
- Any defaults, court judgments or insolvency records.
How to protect your score
- Don't apply at several lenders yourself. Each application can add an enquiry.
- Be upfront about any credit issues. A broker who knows about a past default can pick a lender who'll accept it, instead of applying somewhere that will decline.
- Check your own file first. You can get a free copy of your credit report from the credit reporting bodies. Look for errors before you apply.
- Keep up current repayments. A clean recent repayment history counts for a lot.
Business finance too: even for a business loan through your ABN, lenders usually check the personal credit file of the directors or the sole trader, so the same rules apply.
If your credit isn't perfect
A past default or a thin credit history doesn't rule you out. Specialist lenders consider impaired credit, sometimes with a deposit or a slightly higher rate. See trailer finance with bad credit.