Credit rating question

Mr_Bun

Hopefully someone can give me a bit of advice...I am on a DMP with Stepchange.It is being managed well and payments are up to date and none have been missed.
Obviously I have a poor credit rating,but I am also self-employed.
I need to get a van for the business and was considering contract hire.
The business can afford it,but I was wondering will the van company do a credit check?
I don't want to be embarrassed if they do,and refuse based on my personal debt.

SeanG79

Is the business a limited company or sole trader?

Mr_Bun

The business is a partnership with my wife,she is also on the DMP.

SeanG79

Then they will perform personal credit searches on yourself and your wife.

fruitisbad

Is it a limited Liability partnership LLP?

Mr_Bun

No,it's a normal partnership.
I didn't think the hire company would do a check because I am technically not getting finance on the van,so to speak.
It will be a rental for a period of a few years and can be stopped with a few months notice and the van handed back.

SeanG79

They will do a search, because as much as you are hiring the vehicle, it is for a few years but you will be liable for the full value of the vehicle should you do something negligent, etc.

There are supposed non-status leases available but normally at very high rates and most times even they perform a credit search.

Mr_Bun

Thanks for the info SeanG79.
So basically I don't have much of a chance?

SeanG79

Not saying you don't have a chance, only that a credit check will be performed.

Only a lender can tell you whether they will approve the agreement or not. Some things they will look at:
1. What is currently in the DMP and what is the value of the outstanding debt.
2. How old is the most recent default
3. Do you have any credit not included in the DMP, and what does the payment status look like on those accounts.
4. What is the payment status of that. How long is left of the DMP
5. Being self-employed, they will want to confirm income to assess affordability, usually by way of Bank Statements