Will rejected car finance affect my credit rating?

Snookered12
Snookered12 Posts: 8 Forumite
in Mortgages & endowments
Hello,


I am new to the forum so please bare with me!


I recently took out a Hire purchase loan with a car provider. I made regular payments bar two months when I was abroad. I paid the outstanding debt and I subsequently cleared the amount owing.


When I went to a new car company and applied for credit they rejected me.


I would like to make a mortgage application for durther borrowing (home improvements) and due to last year me being rejected finance from a car company I am worried about my credit history.


I have checked with Experian and Equifax and my credit score is coming back fine.


I could see no record of thre fiancne I have with the first car coampany or even that the loan was repaid in full.


Question - if I make an mortgage application - will any of this come up?? and go against me?


Or are car finance companies not covered under normal credit checks??


Many thanks for any advice!!!!!!!!!

Comments

  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    First Anniversary Name Dropper First Post
    Only the mortgage lender can answer that question I afriad.

    If you have your credit files and theres nothing bad on them then apply and see how you go.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Snookered12 wrote: »
    I made regular payments bar two months when I was abroad.

    When I went to a new car company and applied for credit they rejected me.


    The reason has no bearing. You defaulted on the contract. Another business simply doesn't want the hassle of you potentially defaulting on them. Sometimes the world is as black and white as that.

    Are the two car finance arms connected, i.e. part of the banking group. LloydsHBOS indirectly is the largest provider of car finance in the UK for example.
  • Snookered12
    Snookered12 Posts: 8 Forumite
    What I sruggle with is that on my Experian and Equifax credit report there is no record of any loan with the first car company or the rejection from the second.


    If I cant see it - then will a bank for a mortgage see it?
  • ACG
    ACG Posts: 23,726 Forumite
    First Anniversary Name Dropper First Post I've helped Parliament
    The outcome of the application is probably not going to affect an application.
    The credit check being carried out and the missed payments will.

    Affecting/Not affecting you application does not mean you will be accepted or declined, just that it will have have an impact.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Snookered12 wrote: »


    If I cant see it - then will a bank for a mortgage see it?

    If the lender is connected to the motor finance arm then yes. Internally customer records as neccesary are shared.
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