credit history

catpink83

i have recently fell victim to the rejection spiral i am trying to apply for car finance and have applied to 3 companies without realising this effects your credit history. I applyed so i could work out a budget etc. The first application was fine but i would have to buy a car with that dealership and they didnt have any cars i was interested in, the second turned out to be a little too expensive and needed a garrantour for my budget and the 3rd would have been ideal good cheap budget great car but i was rejected where do i go from here?

stephane_2

Stop applying for the next 6 months at least and make sure to check your credit report to see if everything is in order.
What is your credit history like? Have you had any loan in the past? Do you have any outstanding debts? Have you been late paying? A refusal can be for anything....

Tixy

Have you looked at your credit files - what do they show?

Whilst lots of application in a short space of time can have a short term negative impact on your credit file the fact that you were declined after the 1st one (or required to have a guarantor which is basically the same thing) suggests that there may be other bigger problems on your credit files.

KingElvis

The bus probably or Shanks's Pony..................

Donki

I think you need to make sure your weren't rejected simply due to a "credit spiral", IMO a few successful applications (taken or not) wouldn't effect you negatively but a few rejections would. Basically do what Steph says and make sure your house is in order and that your application is viable for a lender. Weh nI was searchign for a loan I made inquires to 3 lenders (Tesco, Sainsers and M&S) I still was successful and all 3 accpeted I was able to chose the one I thougth was best for me, it didn't effect my credit score.

Tixy

Donki wrote: »

I think you need to make sure your weren't rejected simply due to a "credit spiral", IMO a few successful applications (taken or not) wouldn't effect you negatively but a few rejections would.

A second or third potential lender would have absolutely no way of knowing whether the earlier applications had been accepted or declined - this doesn't show on your credit reports.

Donki

Tixy wrote: »

A second or third potential lender would have absolutely no way of knowing whether the earlier applications had been accepted or declined - this doesn't show on your credit reports.

Well I made 3 applications and had all accepted? My point is, your finicial health and ability to repay is more important than the number of applications you make IMO, in other words a lender would know by the applicants finicial status the likelyhood that they had been accepted or not.

DCFC79

Look at a cheaper option for a car
Look into getting lifts with friends/colleagues
Look at getting the bus/taxi or even waling to work

jason1231972

Donki wrote: »

Well I made 3 applications and had all accepted? My point is, your finicial health and ability to repay is more important than the number of applications you make IMO, in other words a lender would know by the applicants finicial status the likelyhood that they had been accepted or not.

Because lenders don't know whether you were rejected or accepted, a spate of searches in a short period of time can put the wind up them. Funnily enough, if lender B knew that lender A had rejected an applicant, it could scare them less than if the applicant was accepted. Because if the applicant was accepted (lender doesn't know either way), they could be on their way to spiraling debts that they can't afford, from the lender's POV.