Really confused about refusal of car finance!

loobyloo0302

well, after this, I decided to take the plunge and register with experian. I have 5 entries of credit, 2 phone contracts, car finance, bank account and one entry which says settled. All status' are green and say "satisfactory". I have 10 linked addresses, all the same three addresses but for different things. It says I have 1 missed payment.

After reading through the reply again, I apologise and I can now see what you mean when you say I may have used my available credit. The mobile phone balances say £0 and so I would assume the report would have said the same balance (adding on around 5 months car payments as we are talking september time)

How does the "percentage of total credit used" work? More so,in relation to car finance? As to them, it would appear that I have little credit available, but then it would be paid off if the finance was accepted, freeing up what had previously been used?

immoral_angeluk

loobyloo0302 wrote: »

well, after this, I decided to take the plunge and register with experian. I have 5 entries of credit, 2 phone contracts, car finance, bank account and one entry which says settled. All status' are green and say "satisfactory". I have 10 linked addresses, all the same three addresses but for different things. It says I have 1 missed payment.

After reading through the reply again, I apologisde and I can now see what you mean when you say I may have used my available credit. The mobile phone balances say £0 and so I would assume the report would have said the same balance (adding on around 5 months car payments as we are talking september time)

How does the "percentage of total credit used" work? More so,in relation to car finance? As to them, it would appear that I have little credit available, but then it would be paid off if the finance was accepted, freeing up what had previously been used?

Percentage of credit used ishw much credit you owed, vs how much you have available and have access to. For example £900 credit limit on a card with £450 owed would be 50% credit used... but because you could easily access another £450 creditors take the whole amount into consideration, so if you have too much in relation to your income, again they wouldn't lend to you.

loobyloo0302

immoral_angeluk wrote: »

From a financial perspective...

£124 a week income = £537.33 a month
New car payment would be £179 a month.

= £358.33 left from which you'd have to pay for all of your domestic expenditure, rent, council tax, gas/elec AS WELL as the running costs for the car, insurance, petrol, maintenance.

That alone would be unacceptable to any creditor as to them it would be amazing (on that income) how you are managing the monthly car payments as it is.


Also, if you put single then you are a higher financial risk than, say, a cohabiting couple. You are unemployed and on benefits, again, higher financial risk.

No responsible lender would allow you to take on further finance of that scale (mobile contracts are a different kettle of fish.)

The late payments would also show on your credit files and would go against you.

I have a partner!

I am not unemployed and am not on benefits? Where's that one from??? :eek:

immoral_angeluk

loobyloo0302 wrote: »

I have a partner!

I am not unemployed and am not on benefits? Where's that one from??? :eek:

Apologies I read it as maternity allowance. Either way your income is still lower, so that is what they would be going from regardless of your employment status. Being employed would make you less of a risk granted dependant on how long you'd been there, and how many jobs you'd have in the past x years.

You put earlier that you may have told them you were single when asked about your marital status, that's what I was referring to.

loobyloo0302

immoral_angeluk wrote: »

Apologies I read it as maternity allowance. Either way your income is still lower, so that is what they would be going from regardless of your employment status. Being employed would make you less of a risk granted dependant on how long you'd been there, and how many jobs you'd have in the past x years.

You put earlier that you may have told them you were single when asked about your marital status, that's what I was referring to.

Ahhh, lol - ina nutshell, my employer chose to use the 3 weeks that I recieved no pay to say that I had taken unpaid maternity leave (leaving me 3 weeks short of test period) even though my weekly earnings averaged out were still well above the government set amount to qualify for employers maternity pay.

Yes, I knew after thatI should have queried the options but you live and learn! As somebody said, the refusal was a godsend really.