Experian, a credit data company, and CarCloud, a digital car management platform, have announced a new partnership that aims to enhance the car ownership experience for drivers.

Under the arrangement, CarCloud users can check their eligibility for new car finance deals without this process affecting their credit score. In addition, users can also assess if they can obtain improved terms on their existing car finance deals, which may allow drivers to potentially move their current car finance loans to deals with reduced payments or lower interest rates – an essential feature for those concerned about rising living costs.

For lenders, eligibility gives them the ability to identify customers that are likely to be accepted much earlier in the journey, removing applications that would later be declined, saving time and costs, and helping boost conversion and acceptance rates.

Gerardo Montoya, managing director of automotive, at Experian, said: “This is a very exciting collaboration for us as, for the very first time, users of CarCloud can take advantage of our industry-leading eligibility capabilities that’ll help them make better, more informed decisions about their car financing and confidently navigate the car buying process.”

Geoff Turral, co-founder at CarCloud, said: “It’s a huge step forward in reaching our goal of taking the guesswork out of car ownership.  Combining Experian’s expertise in car finance and eligibility with CarCloud’s industry insight gives drivers total clarity about the cost of both financing their car and the future monthly costs of running it.”

This is the latest development of CarCloud’s app, which already provides users with the ability to digitally manage almost every aspect of their car, including reminders about tax, and MOT, finding the best insurance deals and free monthly car valuations, the app provider said.

Incorporating Experian’s eligibility solution into CarCloud’s app means that lenders can easily transfer from flat rate finance to rate-for-risk ensuring that customers get an affordable rate (or range of rates to choose from) tailored to their financial circumstance. Using rate-for-risk clearly shows that a lender is meeting the requirements of the FCA’s Customer Duty guidelines that demand customers get fair outcomes in car finance.