Does making a PCP claim negatively affect your credit score?
- Claim-Smart Contributor
- Jun 10
- 4 min read
No, making a PCP claim does not negatively affect your credit score.
PCP complaints do not appear on your credit report and should not affect your ability to borrow in the future.
If you want some extra guidance making a PCP claim, Claim-Smart can help.
No, making a PCP claim does not negatively affect your credit score.
A PCP claim is a complaint about the way your car finance agreement was sold to you. It is not a new credit application, it does not create a new debt and it does not leave a mark on your credit file.
However, many drivers still worry that making a claim could make it harder to borrow money in the future. Especially if they are planning to apply for a mortgage, credit card or another car finance agreement.
The good news is that making a complaint about a PCP or HP agreement will not negatively impact your credit score.
Here, we explain why, how the claims process works and what you should know before making a complaint.
If you’re looking for a bit of extra support throughout the process, Claim-Smart can help. We can advise on whether you may be entitled to a PCP claim and guide you through the process.
Why doesn't a PCP claim affect your credit score?
A PCP claim does not affect your credit score because it is treated as a complaint rather than a new credit application.
Importantly, unlike the actual car finance agreement that you initially took out, making a claim does not go on your credit file.
When lenders look at your credit score, they normally look at things like your borrowing history, debts, any missed payments or recent credit applications.
Making a complaint about a finance agreement is entirely separate from this process. It’s not a new finance application, so it doesn’t go on your credit report.
Importantly, because it’s not on your credit report, this means that other lenders cannot see whether you have made a claim.
The good news is that this means raising a complaint should not affect your ability to apply for finance in the future.
Does making a PCP claim involve a credit check?
In most cases, no credit check is needed to make a PCP claim.
Whilst some lenders may use credit checks to help them find old finance agreements or verify information, these are usually soft searches. A soft search allows for information to be looked at without affecting your credit score.
Unlike a hard search, which lenders look at when you apply for a new finance agreement, a soft search is not visible to other lenders and does not impact your credit score.
Will other lenders know that I've made a PCP claim?
Generally, no. Complaints are not recorded on your credit file and are not shared with other lenders as part of the credit checking process.
Many people worry that making a claim could make them look like a risky or difficult borrower, however, you are completely within your consumer rights to complain.
It is no different than raising a complaint about a bank account, insurance policy or any other financial product.
Lenders look at applications based on your financial circumstances and credit history, not whether you have previously complained about a financial service. Especially if that financial service is being investigated (like PCP claims are).
Can a PCP claim actually improve my credit score?
You might be surprised to hear this but yes , a successful PCP claim can improve your credit score. In some cases, a successful claim could result in changes being made to information held on your credit file.
For example, if a lender agrees that a finance agreement was unfairly sold and that this contributed to you being unable to make the payments, they may be asked to change the information linked to that agreement.
Every case is different, so this will not apply to everyone. However, it is one reason (aside from the compensation) why some consumers find that pursuing a complaint is worth it.
Should I keep making my car finance payments during a PCP claim?
Yes, it is important to keep making your normal car finance payments while your complaint is being reviewed. Making a PCP claim does not automatically pause your finance agreement and if you stop making payments without agreeing to do so with your lender, this could impact your credit score.
Even if you think you may be entitled to compensation, you should continue paying for now, unless your lender tells you otherwise.
What affects your credit score more than a PCP claim?
A PCP claim itself should not affect your credit score, but the way you manage your finances can.
Elements that can impact your credit rating include:
Missing loan or finance payments
Making late payments
Taking on large amounts of debt for long periods of time
Applying for multiple lines of credit in a short period of time
Not being registered to vote
Using a high proportion of your credit limit on credit cards
These are the elements lenders are much more interested in than whether you have made a complaint about a finance agreement.
Making a PCP claim, where to start
So, does a PCP claim affect your credit score? In most cases, no.
Making a complaint about a PCP or HP agreement does not affect your credit score and should not affect your ability to borrow money in the future.
The most important thing is to continue making any payments due under your agreement while your complaint is being investigated.
If you think you may have been affected by undisclosed commission arrangements on a PCP or HP agreement, it may be worth looking into your options.
You can complain directly to your lender for free, or you can speak to Claim-Smart if you would like support understanding the process and taking the next step.
* Please see our terms and conditions for our fee structure and cancellation terms.
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