We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Pensioner being refused credit, advice required please.
Gapuruk
Posts: 1 Newbie
Dear all,
I would be grateful for your thoughts / advice regarding the following scenario.
My retired Uncle has recently been refused credit ranging from credit card companies through to Argos when he bought a new TV. My Auntie however was able to obtain the credit arrangement from Argos without issue. He’s asked me to assist him in finding out why this was the case.
We’ve checked his credit score with Experian which is excellent. I appreciate from threads I’ve read here in the past that just because you have an excellent credit score is by no means an indication that you will be accepted for credit as many other factors must be taken into account.
To cut a long story short it transpires that my Uncle did his daughter a favour a couple of years ago. As she was unable to obtain credit (due to a current IVA at that time). He took out the credit on a car for her (which I believe may be the reason for him being refused credit). This arrangement is due to expire in November this year (3 year deal with the option to purchase the car outright or return it for a new one and start over again). There is currently approx £5000 outstanding on this arrangement (paid monthly, no payments missed) and would be approx £4000 in November when the 3 years are up.
He is now retired (aged 66), mortgage all paid off, never missed a payment in his life and receives approx £15,000 (after tax) income via pensions. He is luckily in a position that he doesn’t “need” credit, but he thought he would occasionally take advantage of 0% buy now pay later deals.
Would I be correct in assuming that he is unable to obtain further credit essentially because the money “he” already owes is effectively the most that any credit companies would currently be willing to offer him / a person of his circumstances?
If this is the case and he does the same favour for his daughter in November the issue will surely continue ad infinitum – if indeed he is still able to obtain credit for the full value of a new car as he was working when the arrangement began.
Many thanks in advance for any constructive advice.
I would be grateful for your thoughts / advice regarding the following scenario.
My retired Uncle has recently been refused credit ranging from credit card companies through to Argos when he bought a new TV. My Auntie however was able to obtain the credit arrangement from Argos without issue. He’s asked me to assist him in finding out why this was the case.
We’ve checked his credit score with Experian which is excellent. I appreciate from threads I’ve read here in the past that just because you have an excellent credit score is by no means an indication that you will be accepted for credit as many other factors must be taken into account.
To cut a long story short it transpires that my Uncle did his daughter a favour a couple of years ago. As she was unable to obtain credit (due to a current IVA at that time). He took out the credit on a car for her (which I believe may be the reason for him being refused credit). This arrangement is due to expire in November this year (3 year deal with the option to purchase the car outright or return it for a new one and start over again). There is currently approx £5000 outstanding on this arrangement (paid monthly, no payments missed) and would be approx £4000 in November when the 3 years are up.
He is now retired (aged 66), mortgage all paid off, never missed a payment in his life and receives approx £15,000 (after tax) income via pensions. He is luckily in a position that he doesn’t “need” credit, but he thought he would occasionally take advantage of 0% buy now pay later deals.
Would I be correct in assuming that he is unable to obtain further credit essentially because the money “he” already owes is effectively the most that any credit companies would currently be willing to offer him / a person of his circumstances?
If this is the case and he does the same favour for his daughter in November the issue will surely continue ad infinitum – if indeed he is still able to obtain credit for the full value of a new car as he was working when the arrangement began.
Many thanks in advance for any constructive advice.
0
Comments
-
Rightly or wrongly the occupation and age is scored as will amount of debt he has to income and any other available credit he may have.
The £5k outstanding against pension income I suspect is lowering his lenders score0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.2K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.2K Work, Benefits & Business
- 603.8K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards