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.
Yes, car subscription companies will want to assess your affordability and take a look at your credit history.
Most vehicle subscription providers 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 checks should reveal to the provider history of any defaults, payment history and CCJ’s (County Court Judgements), etc.
ONTO at one point, was the only provider not to carry out credit checks. However, this has since changed and they will carry out checks as part of their sign-up process.
Can I get a No Credit Check Car Subscription?
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. See our recent article on “Bogus Car Subscription Companies”
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 (API).
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 types of credit agreements will always show up on your credit reports. Even Personal Car Leases may show on your Equifax, Experian or TransUnion report.
Can you get refused for a Car Subscription?
This depends on the car subscription provider, but yes, it may be possible to be refused a car subscription for many types of reasons, these include:
- Failure to provide requested documents
- Unable to verify identity
- Unable to verify residential address details
- Fraudulent information provided
- Unable to verify employment details
- On national database of bad hirers (RiscONLINE, Hireguard, etc)
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 Companies||Soft Check||Hard Checks|
|Care by Volvo||✖||✔|
|Cocoon Vehicles Ltd||✔||✖|
|Drive Car Flex||✔||✖|
|Short Term Car Leasing Ltd||✔||✖|
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.
Expat Car Subscriptions
For Expat’s and Overseas visitors coming across to the UK, who need a car will need to go through a specialist company that offers Expats Car Subscription’s more information can be found by clicking through the highlighted link.
Compare Car Subscriptions
Compare the various car subscription companies in the UK easily using our website. We list some of the major companies that offer vehicle subscriptions along with their requirements, age restrictions and whether they offer insurance included. Click the links on this page for more information.
We also now display a number of car subscription deals from a wide range of providers, click the highlighted link for more details.
More information has also been published from our Question of the Week: Do you get credit checked for a car subscription?