What is a voluntary termination?

If you’re experiencing financial struggles, a voluntary termination is a way to end your financial agreement early without any penalty charges.

Once you’ve chosen to do this, the lender may record it on your credit report. You’d normally see this in relation to car finance; if you return the car and more than half of the total repayments have been made, you may see ‘VT’ markers on your Checkmyfile report.

Lenders will be able to see that you’ve chosen to leave the credit agreement. This means if you look for car finance in the future, a lender can’t be sure that you won’t do the same thing again. While a voluntary termination will stay on your report for six years, your credit health can recover if you make sure your other repayments are made on time; this will set you on the road to building a positive credit history.

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