Credit expert - affordability

[Deleted User]

Hey! I’ve just checked my credit file on credit club.

My affordability shows as poor, and my disposable income low.

Now, each month, my disposable income is around 80% of my wage, 20% goes on bills etc, and 80% is disposable... surely that should be higher? As it’s not accurate at all.

My affordability is also a lot higher than shown there too..

[Deleted User]

Don't worry. At best, the ratings are a wild stab in the dark and not of any use.

They tend to vary dramatically from lender assessments.

[Deleted User]

That’s okay then, was wondering how it was rated,
Would mean I’d need a disposable of over £2500 fornit to be in green if that was the case :rotfl:

[Deleted User]

For it* mistake

sourcrates

[Deleted User] wrote:

That’s okay then, was wondering how it was rated,
Would mean I’d need a disposable of over £2500 fornit to be in green if that was the case :rotfl:

[Deleted User] wrote:

For it* mistake

There is an edit button to edit your posts, just to make you aware.

System

Unfortunately one of the downsides of things like the affordability tests is that not only the MSE credit club but lenders as well use is that they don't know what your actual outgoings are and have a list of assumptions they make which will be way off what the money savvy spend.

[Deleted User]

I do know, it just wouldn’t allow me to edit for some reason haha, the selections as greyed out

[Deleted User]

Update, applied yesterday for a PCP agreement, black horse declined me, due to ‘affordability’, I then forwarded my bank statements to them, to prove my disposable income is accumulating rather than decreasing, and they said that it’s odd they declined me in that case.

Motonovo accepted me and when I asked, they said that my affordability was fine.

Strange

[Deleted User]

Each lender will have their own criteria.

Which is why the affordability ratings (along with the scores etc) are pretty safe to just ignore