Advise please - credit score / car finance / loan

Lauren2020

Hi all,

This is my first post here but I’m really looking for advise.

Long story short I need a new car due to mine needing a lot of new repairs / high mileage, and also now due to a new job role I am expected to travel most days between offices so I’m not sure how long my current car will last! I have some savings however I am looking to buy a reliable car to last me so would need to borrow the additional 3-4K via loan / finance. I would obviously rather not do this and was saving however due to my current car declining fast I haven’t really much choice.

My problem lies with that my credit rating 2 years ago wasn’t that great due to me not being the best borrower and falling behind on my Littlewoods accounts, however since then I have rebuilt my credit score to 917 and paid off my LW and majority of my credit card. I do have one default as I paid my LW late Jan this year by a couple of days - my fault, I had the wrong payment due date (Grr).

A few months ago around May I checked my credit score via Experian and they suggested I try Santander as I have an 80% chance of a loan with them (6K loan as I didn’t have as much saved as I do now). Santander actually declined my application which had a serious effect on my credit rating ( v. Upset considering I’d worked to increase it for 2 years... ).

Now I am looking at buying a car again as mentioned above but I am extremely hesitant to do anything as my previous loan application ruined me!

Please could anyone advise as I’m at such a loss and have no idea where to start.

Thanks,
L

[Deleted User]

Your previous application didn't ruin anything.

It is one search on your credit file, and your random credit score number changed randomly, as random numbers tend to do. Ignore it.

What is the data on your files, apart from the one default? What debts do you have, what's your income, what is your credit history?

Check all three files, not just Experian.

[Deleted User]

Your credit "score" means nothing only you see it, your own bank maybe a good place to start.

Lauren2020

Sorry, after the Santander application my credit score hit 840 or something alike so I assumed it was because of this.

Income is 18.5k and I haven’t any bills other than my phone etc... as I live at home with parents.

My credit card is at 800£ with no defaults and making double minimum payments each month and my total allowed credit is 3.5k (which I haven’t ever hit nor even close, maximum I’ve had on the credit card was 1.1k)

I did try my bank, the APR they offered was horrific and the adviser even said not to proceed as it was likely to fail!

[Deleted User]

If you're only making double minimum payments on a small card balance of £800, lenders will probably view affordability as your problem. Unless it is at 0%?

Lauren2020

Minimum payment is usually around £30 so I pay from £80-£100 a month.

I’ve also just check Equifax and had a mini heart attack, they rate me as poor with a score of 360?! How can Experian say one thing and Equifax say the complete opposite?

As you can tell I’m not the best with things like this unfortunately

Fireflyaway

If you are earning and don't have any bills, save up a bit more and pay cash. How much do you have saved? If you are looking for something a bit newer and with no faults then £4,000 can get you something that will do the job. Live frugally and you could save £1,000 a month. I'd do that rather than have a loan and pay a bunch of interest.

Lauren2020

Thanks for your response! I’d love to save and have been doing so for the last few months but I’m just very worried my current car will give up before I’m able to get a new one

dresdendave

Unless you CC has 0% APR then why are you carrying a balance, when you have savings?


Pay off card in full, set up DD to do so for evermore.


With take home pay approx £1200, only a phone bill to pay, you should be debt free and able to save for any thing you need.


When you enter the real world of rent/mortgages, utility bills, council tax you will realise lucky you are (financially) at the moment.

[Deleted User]

Lauren2020 wrote: »

Minimum payment is usually around £30 so I pay from £80-£100 a month.

I’ve also just check Equifax and had a mini heart attack, they rate me as poor with a score of 360?! How can Experian say one thing and Equifax say the complete opposite?

As I said in my first post. The scores are little more than fictional. Ignore them.

Your credit history is the only thing that matters.

Lauren2020

I was advised to keep my CC going as rolling credit considering it is the only credit account I now have, apparently me making good monthly payments on this would increase my credit history instead of having no credit accounts?

With regards to additional bills from living away from home, I did used to have such bills however I moved back into my family home a few years later.