First Experian Credit Report - quick query

hufc2002

Hi

I have just signed up to Experians 30 day free trial just to have a look at my credit report as I have always been curious.

To my pleasant surprise I scored 999 however I have 1 negative factor in my report summary which is 'the balance of your unsecured lending could indicate a higher risk'. What does this really mean?

My amount of available credit is £18147
% of total credit being used is 0%
Amount of outstanding debt is £18323

The majority of this outstanding debt is my car which is on a PCP agreement which is paid jointly between me and my wife.

Should I be concerned by this?

Any advice?

Tixy

I wouldn't pay too much attention to the negative/ positive factors from the credit reference agency.

At a guess what they are getting at is £18k borrowing excluding a mortgage is a reasonably large amount in general.
But the key thing they do not know is how much you earn. And it is impossible for them to accurately interpret how a potential lender will view the level of your outstanding debt, because they don't know your income level whereas a potential lender would.

thebritishbloke

Tixy wrote: »

I wouldn't pay too much attention to the negative/ positive factors from the credit reference agency.

At a guess what they are getting at is £18k unsecured borrowing is a reasonably large amount in general.
But the key thing they do not know is how much you earn. And it is impossible for them to accurately interpret how a potential lender will view the level of your outstanding debt, because they don't know your income level whereas a potential lender would.

I may be confused, but surely a PCP/HP deal is secured against the car?

Thrugelmir

thebritishbloke wrote: »

I may be confused, but surely a PCP/HP deal is secured against the car?

Still a debt that needs to be repaid.

Cars can rapidly become devalued.