Car Leasing Issue

Tsmedley

Hi There,

I've for many years up until February last year leased cars on personal contract hire. Around that time i had some issues with my business getting into trouble and ended up with quite a few late payments on my accounts. I also had an issue about 4 years ago now with a MBNA card, which was 4 payments late due to me not updating my address with them so i missed the reminders, along with 1 late payment on my Barclaycard 4 months ago.

My Experian score is now 581 (Poor) it states the following:
3 Negative score factors:
- You have a defaulted or delinquent account (MBNA)
- You have made 1 or more late repayments on your active credit accounts within the last 6 months.
- You have opened 1 new credit account in the last 6 months

I'm currently hiring a car through Avis at about £500 per month so can easily afford a lease and the upfront payment, along with having a 30k income. I'm looking at a VW or Audi.

I'm reluctant to apply thinking i will get rejected, do you think if i wait a couple more months until 2 of the issues are cleared up the score may improve significantly? Would it be better to wait, as i hear if you apply and get rejected it's make your score worse?

Are any finance providers better than others at accepting people?

National_Debtline

Hi

The credit score itself is just a very rough guide made up by Experian. It's not something a potential creditor would see or base a decision on.

A creditor would assess you based on their own criteria. It's difficult to say how much impact the negative aspects of your credit history would have on an application now, or in a couple of months time. Very generally, the longer ago something happened the less of an impact it's likely to have on a lending decision.

It's true that when you apply for credit the search will leave a footprint on your credit file. Multiple footprints within a relatively short space of time can make some creditors suspicious.

James
@natdebtline