Refused Finance?

ChrisWarner

So 4 years ago I took out a car on finance with a baloon payment at the end, the day has come when now this payment is due so as always planned I would return to the dealer and PART EX my car in for a newer model.

I went yesterday and picked what model and did all the deposit, paperwork etc, today they call me to say my finance has been rejected but gave no reason why. So I called the finance company and again they wouldnt give me a reason why.

I have checked experian and my score is average at 600, but they is nothing really on my account (that wasnt there last time I took finance out) which would effect me getting finance.

I am really baffled as now I am stuck with a balloon payment coming up soon, and no way of being able to part ex it for another car and no one is helping me. What steps can I take to sort this out? It is not as if the car is way out of my budget as the car I have selected is cheaper than the car I took out 4 years ago (also same finance company).

PNPSUKNET

have you ever had bounced, missed or late payments with them? If not appeal

dlake0001

The same thing is happening to me at the moment. My PCP finishes on the 7th July and I want to buy the car but no one will give me finance to do it. I'm wondering if it is anything to do with the fact the PCP is showing up on my credit report as an ongoing debt that is not satisfied and another loan would take me over the limit that my credit report says I can have. The thing is if this is the case I would have to return the car for the debt to show as settled and then either buy the car at a much higher price from a dealer or miss the chance to buy the car completely if somebody beats me to it.

johncarlton

My credit score is nearly 900 out of 1000. Apparentley only 2% of the UK population are over 900.

I applied for a new credit card last week and I was also refused credit.

Maybe this is the way things are now. If someone with a clean credit rating can't credit then it'll be even harder for the other 98% of the population.

I feel now that it's pointless for me trying to keep it clean. I'm about to do a debt management plan. Sod the banks. They can have £50 per month for a few months. Then I'll do a settlement offer.

amiehall

John, if your finances are at the point where you need a DMP, why are you shocked that you were declined for new credit? You're aware that part of your DMP will be an agreement not to take out any more credit?

Fiddlestick

johncarlton wrote: »

My credit score is nearly 900 out of 1000. Apparentley only 2% of the UK population are over 900.

And completely meaningless.

Each lender calculates their own score and has their own lending criteria - anything that Equifax or Experian tell you has NO BEARING on you obtaining credit.

I feel now that it's pointless for me trying to keep it clean. I'm about to do a debt management plan. Sod the banks. They can have £50 per month for a few months. Then I'll do a settlement offer.

If you are in the position where you need a debt management plan and are looking to get settlement offers, what is your current financial state?

Based on what you just said there, it doesn't sound good and you may be overextended. This of course may have an impact on you obtaining credit.