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Car finance

Cards & borrowing
A range of credit products used to fund a vehicle purchase.

Overview

Common types include hire purchase, PCP, and personal loans.

Terms and costs vary by product and credit profile.

Why it matters

  • It adds a credit account to your report.
  • Missed payments can damage your score.
  • It affects affordability for other borrowing.

FAQs

Is car finance secured?

Many car finance products are secured against the vehicle.

Will car finance affect my mortgage application?

It can affect affordability because it adds a monthly commitment.

Related terms

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