I feel my score doesn't accurately reflect my file?

SMF1

Dobbibill wrote: »

Check your call credit report as well via Noddle.
Again, disregard the score as this will be totally different to Clearscore (another reason, the score is worthless)

OP - these are the facts we have so far.....

- You are 23 y/o
- You do not have a long consistent history of accounts with the same providers
- You have made some errors/late payments
- You already have debt -Whilst you have very little outgoings due to living with parents
- the average age of your existing accounts is less than 2yrs old
- you already have a vehicle that you do not own ie the bike
- you are likely to incur much higher living costs in the next few years ie the natural progression is to move out of your parents house....will this/won't this be before/during/after your credit agreement has finished
- Your total credit you would like to be accepted for is £40.5k
- Your income is £25k

This is the overall view of how lenders may see it....they don't have any emotion is the application process....it is simply a risk based decision.

I'm not looking for you to justify any of your choices....they are your choices, I'm just trying to show you how your information looks without any emotion.

When you say I am in debt, the only 'debt' I have is the finance I have - isn't that the whole point of making something more affordable? I'm not in debt as such that I can't pay anything that I have just now. I always thought 'debt' as being money you owed, which you can now not afford to keep up repaying, as in falling behind.

Isn't that what finance is about? Everything I've got I'm more than capable of paying for that I've agreed with the finance company.

On_my_way wrote: »

Trust me on this, your income is only "decent" if someone else is paying your actual living costs.

Clearly your choice of car etc is up to you but you are probably better off saving your money for the future.

I am less than ten years older than you and regret not saving more. I have a nice life now but without my husband I would not own my own house and I earn twice your wage.

75% of new cars bought in 2016 were on a PCP Finance deal. The buying of a car through saving cash is long gone, and dealers prefer you to finance a car.

Overall I'm just looking to see what I can do to improve my chances of getting credit for a car.

[Deleted User]

Debt is simply money you owe. Debt you cannot keep paying becomes defaulted debt.

Remember also that not all car purchases are new cars.

YorkshireBoy

The lender does not know that you have £5K in a savings account, because that's not on your credit report.

To a lender (and that's the important thing), you are £8.5K in debt...and you want some more debt. And you also have some fairly recent missed payments.

That's the reality of the situation.

You've said you're going to walk away at the end of the bike finance term. You're renting, rather than buying aren't you? You have no assets, only debt (less savings which of course you could blow tomorrow...and it sounds like you want to).

Re this...

75% of new cars bought in 2016 were on a PCP Finance deal. The buying of a car through saving cash is long gone, and dealers prefer you to finance a car.

Why do you think they prefer this?

Dobbibill

SMF1 wrote: »

When you say I am in debt, the only 'debt' I have is the finance I have - isn't that the whole point of making something more affordable? I'm not in debt as such that I can't pay anything that I have just now. I always thought 'debt' as being money you owed, which you can now not afford to keep up repaying, as in falling behind.

Debt is a sum of money that is owed or due.

You are due to make payments for your bike thus making it debt. When you don't have to make payments for the bike, you own it, do not have to pay someone/where else for it, therefore not in debt.

Isn't that what finance is about?

Finance is about making something affordable now for a consumer that doesn't have/want to use their own money.

75% of new cars bought in 2016 were on a PCP Finance deal. The buying of a car through saving cash is long gone, and dealers prefer you to finance a car.

I dare say that figure will rise with a society that craves instant gratification.

Overall I'm just looking to see what I can do to improve my chances of getting credit for a car.

Pick a cheaper car. With a £5K deposit, you could possibly get accepted for a further £5K and have a lovely £10k car.

SMF1

I have assets in the sense that I own my current car after paying for it on finance new 4 years ago. But as you say they don't take into account your current account savings so why would they take into account your assets?

MHOWARD_2

SMF1 wrote: »

I have assets in the sense that I own my current car after paying for it on finance new 4 years ago. But as you say they don't take into account your current account savings so why would they take into account your assets?

If you don't mind me asking, how much will the repayments be on your new car. It seems a very expensive car if you are only taking home £1700 per month.

SMF1

MHOWARD wrote: »

If you don't mind me asking, how much will the repayments be on your new car. It seems a very expensive car if you are only taking home £1700 per month.

£1700 is basic before there any allowances on top. With a £5k deposit on a PCP plan you're looking at £400 a month.

The only things I enjoy and spend my money on is my cars and bikes with a few other minor things. My total monthly outgoing just now is only £230 pounds £630 per month on ones guilty pleasures really isn't that much when I earn £1700 basic p/m.

bazzyb

With your age and income, you would be unlikely to get approved to finance a £38k car regardless of how good or bad your credit profile is.

Also keep in mind that the lender will take the asset into consideration when making a decision. You haven't mentioned what car it is but thinking about the type of cars you can get for £38k then the lenders may consider it an unsuitable vehicle for your profile when they take into account engine size / insurance group / other risk factors.

SMF1 wrote: »

Overall I'm just looking to see what I can do to improve my chances of getting credit for a car.

Quite simply, consider a different car. If you really must finance a car as you can't afford to buy one, then I would suggest looking for a decent used car around £10k tops based on what you have posted and you should find someone to agree a HP deal for you.

meer53

Why do you need a bike and a car ? 23 is way too young to be in this sort of debt IMO. OP until you realise that you ARE in debt you won't understand.

SMF1

Just shy of 2 months on and I'm about to take delivery of my Audi. Cheers for your replies :rotfl: