Rejected for car finance

rs65

Did they ask how much you earn? Is it the amount being borrowed is too high relative to income?

Tixy

What car finance did you apply for? how much for and where from? are you talking about 0% finance that certain dealers offer on new cars? or finance that would be charging interest? Did you have a deposit to put towards the vehicle purchase?

You say you asked the creditors why they refused you - have you made more than 1 application? how many?

eschaton

Do you have savings outside of the O/D and C/C?

If not then they probably see you as living on the financial edge - and then wonder how you could then afford a loan repayment on top?

It might be an idea to review your spending and take it from there?

BugsyBrowne

Maybe also the OP's credit card company must have seen something on his credit report or took the OP as maybe a risk as someone paying the higher tax rate has a very good salary but decided to only give a credit limit of £1100.

YorkshireBoy

NeglectedFish wrote: »

Regarding the overdraft, I do use it almost every month. Since it's a fixed £5 charge to use (Santander Reward account), I didn't think I had much reason not to use it.

These fees are being revised at the moment. You need to check your own account, because they're moving the 'cap' to 10-20 days a month meaning yours may increase to between £10-20 a month.

In actual fact, it's more beneficial for me to save my income and use the overdraft that it is to clear the overdraft and not save any money that month.

Unless you have a very large overdraft facility (like my own Santander £10K facility which is offsetting my 3.75% mortgage), and are maxing it out each and every month, operating like this is almost certainly losing you money. Have you crunched the numbers?...or just assumed?

And it makes absolutely no sense at all to save money at 2%, whilst at the same time carrying a credit card balance accruing circa 16.9%+ interest.