Turned down car finance - Why? how do i fix this and how long will it take!

mcfcblue

Candyapple wrote: »

2 hard searches would have barely an impact on your credit history so it won't be that.



Sorry it still doesn’t add up. Even when I used to stooze on cards and my credit utilisation was pretty much maxed out and had £50k across cards my credit score was never that low (ranged between 450-500)

Each of the three credit reference agencies use a different scale. Experian score you out of 999, Equifax up to 700 and Callcredit up to 710. Just so you can see how low your 265 score is on the scale.

I don’t understand why you have an income of £75k pa and still have debts? Where is your money going?

Have you checked Experian and Call Credit?

thanks for the response - I checked Experian and my score is 769 out of 999 (a fair score apparently).

I spent (or wasted) a lot of money over the last 4 years whilst living in london on various things, that you would typically see a foolish and stupid 20-24 year old spend money on. Expensive rent, expensive holidays, dinner out and never in, etc. It was all a learning curve that I have accepted and am proactively trying to rectify.

The only negative on my Experian is "1. The usage of your available credit indicates a higher risk". No CCJs, bankruptcy, or IVA. Late payment from last year but none completely missed. 2 applications in the last 18 months that may affect it. Then 4 positives for a variation of things.

I guess these negatives combined may have adverse effects. This leads me to believe if I draw the 9k out of my ISA immediately and pay all of my debts off, it should provide a relatively quick fix to this issue? but I am probably being a combination of ignorant and naive.

Candyapple

If you clear your debts, it’s not to ‘boost’ your made-up credit score, it will be because it will affect your affordability going forward with a mortgage plus any other credit/loans you may wish to obtain in the future.

Like I said before, there are no quick fixes when it comes to repairing your credit history, it’s all about time.

Out of interest, will you be looking to buy in London? What is the likely price of property you’re going to be looking at purchasing / how much deposit were you planning on putting down?

1. Have you been on your salary for long?

2. Are you on the electoral roll (does it show on all 3 files?)

3. Do you have any other closed / settled accounts in your history?

4. Do you have many other 'credit' accounts showing on your files such as bank account / mobile phone etc.?

5. Please list all credit card limits along with outstanding balances.

6. Do you have any other loans / overdraft / car finance etc?

System

mcfcblue wrote: »

All,
My score is low (265) however I have never missed a payment, or done anything, in particular, to negatively impact my credit rating.

I have never been great with money, particularly during my time in London it is safe to say I squandered most of it, and consequently have several credit cards which are maxed (totaling 5k), one of which is used for business but remains high, this in turns means my credit utilization is very high.

So you have done something to negatively impact your credit record, high card utilisation. I expect you've failed on affordability. Not much you can do to rectify that other than get the debt paid down.

Drawing the £9k out of your ISA and paying it off isn't going to give you a quick fix guaranteed to get you a loan next week or even next month. However drawing some of the £9k out of your ISA and using it to buy a car 4/5/6 years old immediately solves your problem of transport. You do not need a car that is going to cost somewhere between £15,000 and £20,000 on finance to go to meetings. Hell my 144,000 mile 9 year old Mondeo will manage to do that just fine - its never once broken down in the 105,000 miles I've covered in the last 7 years of owning it and I doubt its worth more than a grand now.

Edi81

No deposit is a factor.
Are you on electoral role?
The £400 monthly payment is a huge factor. Reign in your expectations.

Darkslider

Tarambor wrote: »

So you have done something to negatively impact your credit record, high card utilisation. I expect you've failed on affordability. Not much you can do to rectify that other than get the debt paid down.

Drawing the £9k out of your ISA and paying it off isn't going to give you a quick fix guaranteed to get you a loan next week or even next month. However drawing some of the £9k out of your ISA and using it to buy a car 4/5/6 years old immediately solves your problem of transport. You do not need a car that is going to cost somewhere between £15,000 and £20,000 on finance to go to meetings. Hell my 144,000 mile 9 year old Mondeo will manage to do that just fine - its never once broken down in the 105,000 miles I've covered in the last 7 years of owning it and I doubt its worth more than a grand now.

I think Tarambor has given you the best course of action, though undoubtedly not what you wanted to hear!

As much as you've got your heart set on showing up to meetings in a brand new car, I think you're going to have to let that idea go for now. The £9k in your ISA would get you something like a fairly fresh (sub ten years old) BMW 320D/Audi A4 or equivalent. £250 on a dateless private plate if you're fussy and I can assure you nobody will bat an eyelid at your choice of vehicle, and you can use the £400 p/m you were budgeting for the finance payments to service your debts.

Dm155

Darkslider is right- £9k will get you something good enough to keep a respectable image if you shop around.