Chances of getting credit?

jambof

Just stumbled across this forum today and thought it may be worthwhile to get some advice from those more in the know than myself.

I was in a DMP from 2015 to last month (paid off early with the help of family). I am now debt free and it feels good! I can safely say I will never get myself in this position again - I've learned a valuable lesson!

Upon checking my Equifax credit report - all of my debts previously included in the DMP are now showing as settled (apart from 1 RBS debt which I know is clear but hasn't updated since 20 June 2018 - a phone call to RBS confirmed they have sent a letter this month 13th confirming it is a nil balance and closed).

I opened a high interest rate credit card in March which is used for Diesel and paid off in full at the end of every month via Direct Debit.

What I am wondering now is :-

How likely is it I would be accepted for finance on a car? I have done some eligibility calculators for Loans and they are coming back as 0%

My wife and I would like to move next year (currently it's her flat) into a house big enough for an eventual family - would this be possible with my credit history? With the equity we have and savings we should have enough for an 85% deposit.

I have a salary of £45k and now there are no DMP payments - a decent amount of disposable income at the end of the month.

[Deleted User]

The accounts will remain on your files for 6 years, so lenders will see that they were in Default/AP/DMP.

This is why you are getting 0% back.

If you can't get 0% on car finance and only sub-prime cards, don't expect to get a mortgage in 12 months

madvicker

It is possible to get a mortgage with a default on your file. But no chance if the default is less than 12 months old when you apply. As always is the case with these things, the longer you continue from now without having any adverse credit on your file, the more your chances improve.

As for car finance, they are less stringent than a mortgage, but still difficult with a recent default.

scaredofdebt

You won't have any problem in all likelihood, getting car finance, the question is what kind of deal you'll get.

Mortgage might be a bit tougher but still doable depending on the LTV, with 85% deposit I expect you should be OK.

I have been on a DMP for about 8 years now (still ongoing) and got a car loan recently for £5k without any issue (APR not great, around 14%) and my earnings are a bit lower than yours, in fact my credit rating is better than average according to Clear Score, for what that's worth (not a lot).

My wife (also on DMP) also remortgaged successfully with a high LTV, around 80% I think it was, again not a great deal though.

Craig1981

with an 85% deposit, I am sure there will no be an issue with a mortgage, as the remainder 15% is secured on the property itself? value will far outweigh the mortgage, unless I'm mistaken? happy to be proved wrong. Or did you mean it the other way with 15% deposit, and mortgage value 85%?


as for car finance, I would suggest signing up to all three credit report sites - Noddle (Callcredit), Clearscore (Equifax) and Money club (Experian). they all have loan eligibility checkers and car finance checkers.

jambof

The defaults on my credit file were registered at the end of 2015 and beginning of 2016. So by the time we would be looking at a mortgage then they would be 2.5/3 years old - would that make a difference, especially if everything else was paid up to date and on time?

My mistake in the original post - we would have a 15% deposit, not 85%.

According to The MSE Credit club :-

My Credit Card affordability score is weak
My loans affordability score is good
My Credit hit rate is 5%
My Debt ratio is V. Good
Credit Utilisation is good

scaredofdebt

I doubt you'd get a mortgage with 15% deposit to be honest, but you might be better off asking a broker.

Sign up for the other credit rating sites and see if they can give you a better idea.

Craig1981

all I can say is different lenders look for different things - best to speak to broker about the mortgage.
try signing up to clearscore and check the eligibility checker on there too.
have a look at maybe some high APR credit cards like vanquish/Aqua etc for bad credit... small starting amounts, but pay off in full each month and the APR doesn't matter... all you using it is to build up some history