Credit Report - How do they work?

Louismkd

Hi guys.

Sorry if this is posted in the wrong section.

I just went and agreed a deal on a brand spanking new car. Total came to £12000. After telling the guy all my details, he was almost certain that id be accepted for finance. It was through Evans Halshaw with 0% APR.

I'm 21 years old and have been working since i was 14. I had a part time job at homebase from the age of 16 - 21 where i was earning an average of £600 a month. I now work for a company where i am earning £20k plus a year, so didn't feel like id have any problem with finance.

In terms of Loans, iv had a £1000 Sainsburys loan, which i am currently paying off and have never, ever defaulted on. I have a phone contract and car insurance, iv never defaulted on these. I also had mobile broadband contract which i never defaulted on. So why have i been rejected finance?

When i was 18, i tried to apply for an Argos card - Got rejected.
When i was 19 i tried to apply for a pay monthly deal on a TV - Got rejected.
When i got my Sainsburys loan, they gave me 38% APR!! Because that's the best they could do. I was 20 at the time. I only agreed to this because i needed a car desperately.

There is only one thing that i can think of that is against me on my credit history, and that was down to owning ebay £9 about 5 years ago. They sent me a debt letter, and i paid it the day i got that letter. The only reason i didn't pay it sooner was because i just forgot, and didn't realise it was a big deal. (I was only young at the time) Now would this be on my record? If so, is there anything i can do about it? If it is on there, then for all my credit to be ruined because i owned ebay £9 seems bloody harsh.

Im earning good money now, and just cant get any credit, even though i can easily afford it.

Iv applied for a credit report from Experian, and am having to wait for them to send me a pin to my house so i can fully sign up to their site.

So, my question is, does anyone know why i could be being rejected? And is there anything i can do about it?

Thanks.

DCFC79

Are you on the electoral roll ?
How long you been at current address and job ?

Why a car valued at 12K, whats wrong with a car for half that price ?

Louismkd

Thanks for the reply.

Yes on the electoral roll and have been at current address all my life - 21 years and 7 months.

Well because I want to get a new car, as im planning on keeping it for many years. Would like to treat myself, and feel that im earning enough now to do so.

DCFC79

You can still keep a car for many years whether you spend 5k, 10k or 12k on it.

As to why you were rejected only the finance co would know this but not sure they would tell you, each finance co has they're own criteria to fulfill.

Louismkd

I understand that. But a new car is what i want, and shouldn't really be being rejected in my eyes. Ex girlfriend worked at pizza hut part time and got finance on a new car!! Unbelievable.

The car company rang up again today, and were almost certain it was because i had defaulted on a loan in the past. Which i can categorically deny.

Never defaulted on anything in my life. Apart from the £9 that i owed ebay many years ago.

meer53

I want never gets. Thats what i say to my kids.

Think you might have to accept for now that you aren't going to get finance for a new car just yet. Wait for your credit file info, then you might know what the problem is. Maybe there is a default on your file which shouldn't be there, if there is you can ask for it to be removed and apply again. How long have you been in your current job ?

lurko

Hi guys,

well i have just received my credit report and my score is FAIR with 820. I need to borrow 5K. i have changed my bank last year therefore they do not give me loan as yet. i have been with HSBC and paying my loan that i have taken out in 2009. i have only 3 year left. on my report it says next my HSBC bank that Satisfactory - Settled. including my credit card with them. on my report does not say anything like "default" or CCJ ...all is Satisfactory and settled.
I have used my credit card with my new bank last year and making the payment on time. i have missed couple of payment for my phone bill but i was only max 5 days.
i tried to apply for loan with TESCO and SAINSBURY's but they refused to give me. Any idea why? and where could i try to get 5k out? I can manage to pay it and need for only 5years.

Any advise welcome Thank you!

Vikipollard

Louis, it may simply be that you are asking to borrow more than 50% of your annual salary.

You say you already have a £1k loan as well, which would mean you having a £13k debt including the £12k you want to borrow (making it 65% debt to earnings).

There are plenty of posts on here where people say lenders are twitchy at giving money in excess of 50% of loan to salary. It may be as simple as that.

And at 21, are you really likely to keep the same car for several years? They soon lose their shine ~ especially once they need MOT and repairs.

Dont blame you for wanting to treat yourself at all , but would suggest aiming lower to stand much chance of being accepted.

DCFC79

lurko wrote: »

Hi guys,

well i have just received my credit report and my score is FAIR with 820. I need to borrow 5K. i have changed my bank last year therefore they do not give me loan as yet. i have been with HSBC and paying my loan that i have taken out in 2009. i have only 3 year left. on my report it says next my HSBC bank that Satisfactory - Settled. including my credit card with them. on my report does not say anything like "default" or CCJ ...all is Satisfactory and settled.
I have used my credit card with my new bank last year and making the payment on time. i have missed couple of payment for my phone bill but i was only max 5 days.
i tried to apply for loan with TESCO and SAINSBURY's but they refused to give me. Any idea why? and where could i try to get 5k out? I can manage to pay it and need for only 5years.

Any advise welcome Thank you!

You would be better off starting your own thread,

credit scores are pretty meaningless so dont get so hung up on them.

lurko

sorry, what do you mean under "better off start your own threat"?

DCFC79

lurko wrote: »

sorry, what do you mean under "better off start your own threat"?

I mean exactly that, you have asked your own question in someone elses thread so if you have a question which you do have you need to start your own thread simples.