Credit Score and Car Leasing

[Deleted User]

But we all know "great credit scores" mean diddly in the real world.
So that's a pointless piece of comparison work there.

There could be any number of reasons why he doesn't fit the lenders preferred customer base at the time of application, regardless of the (supposedly) spotless credit score.

xlnc99

i dont agree with 'great scores mean diddly'

I agree that a credit score with the agencies are a good indicator of someones credit profile and each credit agency scores different based on criteria (which are all roughly the same) and each lender works out their own scores/profile based on your profile and whatever algorithm they use. That I agree with

But to say its meaningless is just false information. They give you a good idea on your profile whilst taking into consideration factors that every lender look for. For example if i have a score of 50 out of 999 in experian it clearly shows there are issues with my profile.

[Deleted User]

xlnc99 wrote: »

i dont agree with 'great scores mean diddly'

I agree that a credit score with the agencies are a good indicator of someones credit profile and each credit agency scores different based on criteria (which are all roughly the same) and each lender works out their own scores/profile based on your profile and whatever algorithm they use. That I agree with

But to say its meaningless is just false information. They give you a good idea on your profile whilst taking into consideration factors that every lender look for. For example if i have a score of 50 out of 999 in experian it clearly shows there are issues with my profile.

Right-oh.

Let's ignore the bankrupts with 999 scores and people with 999 scores and immaculate files who can't get SIM-only contracts, but those out there with woeful scores of 300 odd getting £350k mortgages.

:doh::doh::doh::doh::doh:

xlnc99

not seen a thread about a bankrupt getting a 999 score on here. However, even if that was the case, i would assume it was an anomaly. Mistakes to happen with algorithms. I mean, you ever heard of a bank paying in to someones account by 'mistake'. Nothing in life is foolproof.

If that is the basis of your argument then its not really an argument as its a rare occurrence. If this was the case of this happening on a regular occurrence then clearly the system is flawed. However ive not seen on thread of this yet i hear people all the time talking about it.

As for a mortgage - anyone can get a mortgage! You dont need good credit to get a mortgage. Come on Gary - i thought you were smarter then that. You should know this stuff.

Willing2Learn

xlnc99 wrote: »

not seen a thread about a bankrupt getting a 999 score on here.

Near enough every day there are threads started that state something along the lines of "I've got an excellent credit rating and score but have been declined for a loan"...

xlnc99

Willing2Learn wrote: »

Near enough every day there are threads started that state something along the lines of "I've got an excellent credit rating and score but have been declined for a loan"...

Yes i dont dispute that. That can happen to anyone. You are missing out some key information:

I agree with these threads and i have read them. But they also state on there, ' i have an amazing credit score and my credit profile is excellent' never missed a payment, low utilisation etc etc

So that means the credit agencies are doing their jobs correct and these people credit profile are good idea on what their score should be. Whether they get accepted or declined by lenders is another story. That depends on what the lenders are looking for, maybe their quote is full up for the month or they know they wont make money from this person, or they are too old, too young. That is a different conversation

My point remains the same

[Deleted User]

xlnc99 wrote: »

Yes i dont dispute that. That can happen to anyone. You are missing out some key information:

I agree with these threads and i have read them. But they also state on there, ' i have an amazing credit score and my credit profile is excellent' never missed a payment, low utilisation etc etc

So that means the credit agencies are doing their jobs correct and these people credit profile are good idea on what their score should be. Whether they get accepted or declined by lenders is another story. That depends on what the lenders are looking for, maybe their quote is full up for the month or they know they wont make money from this person, or they are too old, too young. That is a different conversation

My point remains the same

Which is probably the case with OP...

bazzyb

xlnc99 wrote: »

Its not 'absolute garbage'

As i mentioned earlier i applied for a lease car two weeks ago. I got rejected. Found out a few days later that the broker made a spelling error in my name hence why it was refused. So it can happen. From what he has described he has a great profile for a lease car and if everything he has said is true there is no very little chance he would get refused. Car leasing is the easiest to get finance on cars! Ive been leasing for 10 years i know how it works.

It really is garbage. Just because a mistake was made on your application, then that means a mistake must have been made on the OP’s application?

Leasing is not the easiest finance to get, the opposite is in fact true. Leasing is for very prime customers and lenders have strict criteria. On the flip side, other forms of finance such as hire purchase are available to near prime & sub prime customers.

From what the OP has started, he should have no issues getting accepted somewhere for a hire purchase agreement so long as it was for a sensible lend rather than the £22k car he is looking at.

bazzyb

xlnc99 wrote: »

He just come out of a leasing arrangement aswell.

Wrong again. Perhaps read the thread in full.

xlnc99

bazzyb wrote: »

It really is garbage. Just because a mistake was made on your application, then that means a mistake must have been made on the OP’s application?

Leasing is not the easiest finance to get, the opposite is in fact true. Leasing is for very prime customers and lenders have strict criteria. On the flip side, other forms of finance such as hire purchase are available to near prime & sub prime customers.

From what the OP has started, he should have no issues getting accepted somewhere for a hire purchase agreement so long as it was for a sensible lend rather than the £22k car he is looking at.

Whilst there is no guarantee a mistake has been made im saying it is a strong possibility due to his finances being in order and having a good credit profile.

As for where you are getting your information about leasing - dont mislead if you dont have an idea on what you are talking about. Leasing is the easiest method of financing a car. The CAR is never yours, you are just borrowing it. Just like hiring a car! There is no strict criteria and you are talking absolute nonsense when you say its for primer customers! There is little risk towards the lender, they own the car. The customer will never own the car. There is a big deposit payment usually at least £1500 - £3000 depending on the car. This deposit is non refundable. In most terms and conditions if you miss one payment or at least two then they can take the car back and on top of that they will already keep your deposit. After the leasing is over the finance company will either sell it or lease of for cheaper to someone else. They will always make money. On top of that 9/10 when you have to give the car back, the finance company will always try and make you pay for 'damages' even if there are none. Leasing is the least risk in terms of finance from a lenders point of view.

I know all this because cars are my life and ive been dealing with financing, leasing and cars for the last 20 years. Leasing is the most popular method of finance for cars