Refused credit and loan, not sure what to do next.

Jondread_2

Hi all, first time posting here. Basically to cut a long story short, the lease on my car is due to run out in September and I've been looking at buying a car from a friend for £1600.

I applied for a loan and got refused, and also applied for two credit cards mbna and Tesco, and also got refused. I've never had a credit card before and have always had a decent credit rating. We have just taken out a mortgage though a month prior, which may have affected this?

I have one debt at the moment to hsbc which is £1000 flexiloan, never missed a repayment...

What are the chances of hsbc being able to extend my loan to £2600 so I can get the car in September? Or are there any other options I should consider? We have thought about trying to get the loan or credit card in my partners name, but since we are commonlaw I'm not sure if that would work?

I'm wondering if I made a decent argument to hsbc in that, my current monthly payments on the lease car are £160 pcm and I can cope with that absolutely fine, then surely I'll have no trouble paying them £160 over 10 months to clear that loan.

Any ideas at all?

Thank you in advance!

DCFC79

No 1 can tell you what your chances are but ask HSBC if you can extend the loan, your credit rating will have no bearing on this or any loan applications as lenders cant see it, the history is what lenders care about.

Do you have a joint bank account as that would link you financially ?

If not she might be able to apply for a credit card, its risky if at some point you 2 split up and the credit card she applied for becomes an issue.

marcarm

They don't know you will stop your lease so they will take into account £320 of payments per month.

You also haven't posted your salary, an extra £160 on top of a £1000 salary is hard but on top of a £3000 per month salary is more doable.

I'm not sure making an argument will work, they have their criteria and you are not meeting that at the moment.

[Deleted User]

As you have applied for a loan and 2 cc's and just taken on a new mortgage I can see why you are getting refused, can you not save over the next 3 months or borrow a little from family?

downhillfast

Did the taking out of mortgage include a house move? If so then you may have been refused due to electoral roll issues...?

glennstar

marcarm wrote: »

They don't know you will stop your lease so they will take into account £320 of payments per month.

I would be astonished if this was the case as the leasing company needs to declare the duration and payment history on the account (lease) and anyone looking at the account will know if it is in default or not and when it is due to end. You may have a valid point if it was the same company being applied to for the same type of product as many companies are starting to operate a cool down policy - but I don't think this is the case from what OP says.

Shouldn't someone be asking OP why they are buying a car from a friend? That sounds like a bad idea to me.

ViolaLass

There's no such thing as commonlaw partners and it would make no difference in this case any way.

Could you offer the friend £160 per month for 11 months? (That's a made up possibility - 10 months to pay the debt, month 11 for interest).

dresdendave

ViolaLass wrote: »

Could you offer the friend £160 per month for 11 months? (That's a made up possibility - 10 months to pay the debt, month 11 for interest).

From the friend's perspective that sounds like a recipe for disaster. What if faults develop after a few months? The new owner could start withholding payments to cover the cost of repairs. This type of arrangement will invariably put a strain on any friendship or end it completely.