Car lease had big impact on my score??

seanwinf

Hi all. I have never missed a payment on anything. I have a mortgage loan and credit card. Now i took a 12 month lease on a car and shows as £27k on my file so with my other credit it has really dropped my score to around 850 now. I tried a balance transfer on my CC to halifax from barclay card and not thinking i would have an issue and was declined. Never ever had a problem so not sure what i can do now to make things better? Or do i just have to wait to hand the car back?

seanwinf

The reason im asking more so if wanting to sell our house and have a bigger mortgage later this year but worried this will hold us back?

GingerBob_3

Yes, this is a major problem with credit reporting and the companies that subscribe to it. A lease car is not credit!! However, the bounders at the CRAs have convinced various parties that it is, hence your difficulties. This needs tightening up by the ICO to stop such deals being reported as credit. However, the ICO are beholden to the CRAs and generally capitulate in such matters.

seanwinf

Thanks for the reply. So do i just have to wait until november when i hand it back to see my credit score/history to get better? I take it that it is the car having an impact and pushing me over what i could potentially borrow to the limit?

john1002

It could be your additional credit hitting your credit file, but your score you mention is just clever marketing by the credit reference agencies, your 850 is only seen by you not one of your credit providers or future providers, ignore it and try and find why why you CC provider declined your transfer, also try the eligibility checker on this site to see how you steve owed by that and report back.

John

seanwinf

I have £33k total it says on experian of credit. Ive had the loan a year and half and not touched cc in months just a small balance on there. Just frustrating because i need to move and never missed a payment and have a good income.

Thrugelmir

The car lease will impact affordability calculations. Try some of the online mortgage calculators to see by how much.

Credit score isn't used by lenders. CRA's don't lend money either.

seanwinf

CRA? Ive done the affordability and have more than enough to get the house i want but worried if i apply to halifax (already in a fixed) i dont want to be turned down again so then have 2 declined on my history

seanwinf

Ohhh credit reference agency?

john1002

Also nobody sees declined transactions just a search with no outcome good or bad.

John