Navigating the path to a healthier credit score can often feel like a complex journey. At Marsh Finance, we understand the importance of a good credit score, especially when applying for car finance. In this article, we’re exploring the impact of having a Very or Littlewoods account on your credit score.

It’s important to note that Marsh Finance isn’t affiliated with Shop Direct, and this is purely educational, not a promotion. Check out our other blogs to see how varying credit can impact your credit score.

A graphic showing Very's new VeryPay feature.

What is a Very or Littlewoods Account?

Very and Littlewoods, part of Shop Direct, offer a range of products, from clothing to electronics, and provide a credit account option, known as Very Pay or a similar facility with Littlewoods. These accounts function like a store card, allowing you to purchase items and pay for them over time. With a representative APR of 39.9%, it’s wise to borrow modest amounts or pay off the balance quickly to avoid high interest charges.

Applying for a Very or Littlewoods Account

To open an account, you apply directly on their websites. They feature an eligibility checker to gauge your qualification for their finance offers. Once approved, you’ll have access to an app to manage your account, offering flexible payment options, including an interest-free period if you repay in full within three months.

Spending Limits and Credit Checks

 Your credit limit with Very or Littlewoods is subject to a credit check. While their lending criteria may be more relaxed than a car finance lender, your credit score still plays a role in determining your borrowing limit. They may offer a lower credit limit if your credit score is on the lower side.

Can These Accounts Improve Your Credit Score?

Yes, responsibly using a Very or Littlewoods account can help improve your credit score. Making purchases and consistently paying them off within the agreed timeframe demonstrates to lenders that you are reliable with credit. However, late or missed payments will negatively impact your credit score, so it’s crucial to borrow only what you can comfortably repay.

An image showing credit scores on a mobile device with a credit score spectrum in the background.

Additional Ways to Boost Your Credit Score

While a Very or Littlewoods account can contribute to improving your credit score, there are other effective strategies:

  • Register on the Electoral Roll: This verifies your address for lenders.
  • Make Timely Payments: Consistently paying bills on time showcases your reliability.
  • Utilize a Lower Amount of Available Credit: This indicates responsible credit management.
  • Regularly Check Your Credit Report: Ensure there are no errors that could affect your score.
  • Consider a Credit Builder Card: These cards, designed for building credit, often have low limits and higher interest rates but can be beneficial for small, manageable amounts.

Want some additional tips/advice on how to improve your credit score? Check out our article here.

Marsh Finance: Supporting Your Car Finance Journey

Whether you’re exploring ways to improve your credit score or ready to apply for car finance, Marsh Finance is here to assist. With tools like our car finance calculator and a 30-second pre-approval process, we make it easy to find out if you’re eligible for car finance without impacting your credit score. Plus, our car marketplace offers a seamless way to find and finance your dream car in one place.

Improving your credit score is a multifaceted process, and responsibly managing a Very or Littlewoods account can be part of that journey. However, it’s essential to consider all aspects of credit management to ensure a steady rise in your score. At Marsh Finance, we’re committed to helping you navigate your financial path, offering the support and tools you need for a successful car finance application. 🚗💡📈💳

Finance is subject to status

Representative Example

Rates from 12.9%

Representative example: borrowing £10,000 over 60 Months with a representative of 23.0% APR, an annual interest rate of 23.0% (fixed) and a deposit of £0.00, the amount payable would be 59 repayments of £269.58 per month, with one final repayment of £279.58 (which includes the option to purchase fee of £10.00), with a total cost of credit of £6,184.80 and a total amount payable of £16,184.80. Marsh Finance Limited are a lender, not a broker. 

Marsh Finance Limited are a lender, not a broker.

This is for illustrative purposes only and is not a quote or an offer of finance.