How does Car Leasing affect credit report/score.

Benj1987

Hi,

Hopefully I have put this in the right forum section, I have searched around and can't find the answer I'm looking for.

Basically my car is starting to fail and there seems to be a lot of things going wrong with it and its almost cost half what I paid for the car to fix over the last few months.

I'm thinking of getting a new car on one of these 3 year lease deals from Ford (sorry can't post the link as I'm new) I have good credit rating and can afford the repayments to I should be able to get one easily I think.

I am also currently saving to get a mortgage with my girlfriend which will be sometime next year.

My question is will getting a car on one of the lease deals how will affect my credit score, or will it even show up at all? I don't want to go ahead with one and when it comes to getting a mortgage I get rejected as this is on my credit report.

Thanks for any help!

Ben

The_Offside_Rule

Ben, as you are applying for credit, the company will search your files which and a record of this will stay on your file for approximately 12 months from the date searched.

Given that you're fairly close to applying for a mortgage, I'd be very careful with credit at the moment. Opening a new credit account at this point could be fatal to your chances of a mortgage for at least 18 months, particularly as having a car on credit is a big deal.

Personally I'd open no more than a mobile contract if I were you, but then even this would be wise to do at least 6 months before your mortgage application.

Regarding your current car - just get it roadworthy for now. There'll be plenty of time for you to drive something decent after you've got yourself a mortgage.

I hope I've answered you.

nobodysdriving

rdf1988 wrote: »

Ben, as you are applying for credit, the company will search your files which and a record of this will stay on your file for approximately 12 months from the date searched.

Given that you're fairly close to applying for a mortgage, I'd be very careful with credit at the moment. Opening a new credit account at this point could be fatal to your chances of a mortgage for at least 18 months, particularly as having a car on credit is a big deal.

Personally I'd open no more than a mobile contract if I were you, but then even this would be wise to do at least 6 months before your mortgage application.

Regarding your current car - just get it roadworthy for now. There'll be plenty of time for you to drive something decent after you've got yourself a mortgage.

I hope I've answered you.

couldn't agree more to the above

just to add:
it's not so much having one search on your file, one search in 6 months is little and will not jeopardise you getting a mortgage.
it's the 'financial commitment' of the car finance
it will reduce your 'eligibility' on the mortgage
I have recently gone through the mortgage thing myself (just got an offer in principle last week), however I had to 'eliminate' all of my debts in order to be eligible for the mortgage I needed!
so you are better off not having any debts on file.
If I were you I'd buy a cheap second hand car or just keep the current one going until you get your mortgage, then, after you've moved into your own house if you can afford finance then do it.