Credit rating improvement loan

trevor_lock

Hi,

I have recently been refused a lease on a new car through mercedes and was instructed by them to register on experian to find out why I might be declined. I took their advice got a free trial check and found my credit score to be 939 but with 2 negative factors flagged up, they are the following:

• You have no successfully settled non-mail order accounts.
• The value of your highest credit limit indicates a higher risk.

Through a bit of goggling and searching on these forums I think I have found out that the first point is there as I have no settled loans or closed credit accounts.
And the second point would be due to my credit card only having a max limit of £500.

Until now I have never needed a loan or any credit, so it seems that is holding me back.
I have no missed payments or anything else negative I can think of that would/should be a negative on my file.

My salary is around 30k & I have worked for the same company for over 2 years.
Living with parents but have been told this shouldn't effect my application.

Does anyone have any ideas on the best way to get these 2 negative points off my report?

I should be able to get a small loan or finance with my credit rating but only really need the credit for this lease.

A friend has suggested the quickest way would be to get finance for a purchase from one of the high street electrical shops (currys, pc world, etc). Would these be classed as non-mail order accounts?

I would assume if I were to get a loan or finance this would eliminate the "The value of your highest credit limit indicates a higher risk" negative on my report at the same time?

Any help, advice or ideas would be greatly appreciated.

CLAPTON

use you credit card regularly and pay in full every month

get another CC and use similarly

how much were you trying to borrow?

why ever does some-one earning 30k and living at home need a car loan?

theoretica

Ask your CC to increase the limit? And then of course continue to pay off in full each month.

trevor_lock

Thanks for the reply.

I have a high interest credit card which i use all the time & pay off every month.
I have thought of getting another but it would not be a settled loan/line of credit so I don't think it would help my situation.

The car was on a contract lease costing around 15k over 2 years, I am only interested in getting a car on lease as I can get significantly more car for my money and don't have to worry about selling it once I am finished.

CLAPTON

Bear in mind that experian don't do loans so their views are only indicative.

I would suggest a second CC hopefully with a higher credit limit

However, to 'waste' 15k on two years worth of motoring seems somewhat excessive; saving for a property deposit or life would seem a better use of the money.

trevor_lock

I require a premium brand vehicle for my business so even if I were to purchase one brand new I would be looking at a similar cost in depreciation over 2-3 years.

Are there any other options apart from a credit card as I mentioned this does not meet the "settled non-mail order accounts" criteria i need.
Could getting finance on something relatively small from somewhere like currys help me or would I need a full blown loan?

CLAPTON

experian don't do loans

borrowing 15k with a income only only 30k is rather high ratio and may have been the reason you were declined.

it seems a strange business that requires you to spend close to 50% of your take home pay on a running a car

trevor_lock

Sorry I think you may have misunderstood my first post.
I was asking for advice about a loan or finance agreement to help improve my credit rating. I wasn't asking for opinions on how I spend my money or what kind of person I am.

If you have some advice that would be informative regarding how to improve a credit rating with a small loan/finance agreement please post a reply, if you only want to increase you post count to get the next star under your username please go elsewhere.

ILW

Doesn't really add up.
Need a premium brand car for my job.
Salary £30k.

I would suspect other reasons for the decline.

marliepanda

Surely if the job 'required' you to have a premium car you would have one provided by them. What are you driving now that is so heinous?

I think it is more that you want a premium brand car, but can't afford one.

YorkshireBoy

trevor_lock wrote: »

Are there any other options apart from a credit card as I mentioned this does not meet the "settled non-mail order accounts" criteria i need.
Could getting finance on something relatively small from somewhere like currys help me or would I need a full blown loan?

Your problem is that you have no history of managing credit or substantial amounts of credit.

Buying a £200 dishwasher from Currys for your parents on 6 months 0% 'buy-now-pay-later' isn't going to improve your credit rating anytime soon!

They're looking for history going back several years, especially when looking at lending someone 50% of their gross income over such a short timescale.

My suggestion would be to open additional credit cards as suggested above, spend wisely (and repay in full each month), increase your income, and try again in a couple of years.