Car Subscription Credit Checks

Car SUbscription Credit Checks

Today we’re going to have a look at credit checks and how they work with car subscription companies. Some companies offer their subscription services even if you have bad credit or are non-status.

Do things the right way

Before taking any form of credit agreement, you will be required to provide information and documents to prove your identity and creditworthiness.

The process for car subscriptions is similar to those who apply for credit cards or loans with the information being used to assess the risk and prove who you are.

Vehicle subscription companies will often carry our similar credit and identity checks to make sure you can afford the car and to see if you have any negative history on your credit report.

Will I be credit checked for a Car Subscription?

Yes, car subscription companies will want to assess your affordability and take a look at your credit history.

With most vehicle subscription providers, they will carry out what is called a “soft” credit check. This type of check should not leave a mark on your credit report and doesn’t impact your credit score.

Most providers use this sort of check as part of their identity checks and to review your credit history.

Some subscription companies may perform a “hard” credit check. This sort of credit check will make a marker on your credit file and could, potentially have an impact on your credit score.

All types of credit check should reveal to the provider history of any defaults, payment history and CCJ’s (County Court Judgements), etc.

No Credit Check Car Subscriptions

Whilst you may see many companies offering no credit check car subscriptions, it is important to be extremely wary. Especially those advertised on Social Networks such as Facebook and Instagram.

All legit companies should carry out identity checks as part of FCA and Anti-money Laundering regulations but the “No Credit Check” banner may also be confused with those companies who don’t actively use your credit score to make a decision.

In this case, they look at your affordability, to ensure that you are able to pay for the vehicle subscription on a monthly basis and not default on any payments.

Do car subscriptions go on my credit report?

As a rule of thumb, most car subscription providers do not report your car subscription to credit reference agencies. This isn’t true in all cases as some of the companies may provide payment history to the various credit checking companies via software links.

Your vehicle subscription may also get picked up if you need to provide your bank statements for a mortgage or a loan, they may even get picked up by affordability checking systems such as Credit Kudos.

If you were to purchase a vehicle via a Hire Purchase (HP) or Personal Contract Purchase (PCP) then these type of credit agreements will always show up on your credit reports. Even Personal Car Leases may show on your Equifax, Experian or TransUnion report.

What type of credit check do car subscription companies carry out?

We have included a breakdown below of the types of credit checks that some of the car subscription companies carry out:

Subscription CompaniesSoft CheckHard Checks
Care by VolvoTBCTBC
Cazoo
Cocoon Vehicles Ltd
Drive Car Flex
Elmo
Flexed
Flexigo
Flexirental
LeaseplanTBCTBC
Mycardirect LtdTBCTBC
ONTO
Pivotal
Short Term Car Leasing Ltd
Wagonex
Correct as of 24th December 2021

Bad Credit Car Subscriptions

We’ve teamed up with No Credit Check Car Lease to provide you with an option should you have CCJ’s or Defaults on your credit report. They provide the checks based on your affordability and not your credit score.

All applications will undergo a soft search and identity documents may be required. Click the link below to find out more about the service that they offer. Please Note. we may receive a remuneration should you go ahead with one of their products or services.

Compare Car Subscriptions

Compare the various car subscription companies in the UK easily using our website. We list some of the major companies who offer vehicle subscriptions along with their requirements, age restrictions and whether they offer insurance included. Click the links on this page for more information.

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Post Published: December 28, 2021
Post Last Updated: January 17, 2022