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Loans and Credit score advise help

edited 30 November -1 at 12:00AM in Loans
7 replies 718 views
johnno83johnno83 Forumite
5 posts
edited 30 November -1 at 12:00AM in Loans
Hi All
I’m looking to secure a £20k loan in a couple of months to buy a new car. My credit score is excellent (970 with MSE Credit club) however my loan and credit card affordability is classed as v.weak? It makes absolutely no sense to me.

My mortgage is less than 20% of my salary, I have no debts and I’d consider myself to have a large chunk of disposable income (well over 50% of my salary). I have a couple of interest free loans on the books (sofa and carpet = £60 per month). Never had issues with credit card payments, debts or overdrafts.

The affordability score has been like that on my report for about 6-12 month now. I first noticed it when I changed my Natwest current account to a joint account with my wife – no idea if this affected it or if it was just a coincidence. Her credit score is good anyway and its not my main current account.

Any ideas why this is like this?
Could it be a glitch on Experian/MSE CC?
Will it ruin my chance of the loan?
Any advice or knowledge in this kind of thing much appreciated.
Thanks
Jack

Replies

  • zx81zx81 Forumite
    30.3K posts
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    The scores aren't a useful reflection of anything. Don't worry about them.

    They're not seen by anyone so you haven't ruined anything.
  • phillwphillw Forumite
    3.8K posts
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    johnno83 wrote: »
    credit score is excellent (970 with MSE Credit club) however my loan and credit card affordability is classed as v.weak? It makes absolutely no sense to me.

    If you click Analyse your affordability score then does it should give a breakdown of the three things it uses to calculate that: Debt ratio, Credit utilisation & Disposable income

    It might help to know which of those is dragging it down.
  • johnno83johnno83 Forumite
    5 posts
    Debt ratio = Very Good
    Credit Utilisation = Very Good
    Disposable Income = Very Weak

    Another confusing element = when i search for loans in the loan eligibility section it tells me I have a 95 or 90% chance of acceptance for the majority.
  • Snooks_1617Snooks_1617 Forumite
    1 posts
    First Anniversary
    MoneySaving Newbie
    Can you advise did you apply for the loan? Was u accepted?
  • abc.xyzabc.xyz Forumite
    85 posts
    10 Posts Name Dropper First Anniversary
    Is your financial info up to date?

    https://clubs.moneysavingexpert.com/creditclub/settings

    My disposable income is fair and I certainly don't have 50% disposable income.

    In any event, the affordability meter doesn't make one iota of difference to your chances of being accepted. Lenders do not see it. But it might affect which loans you see on Credit Club. Always best to use lenders' own eligibility checkers.
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • DCFC79DCFC79 Forumite
    39.6K posts
    Part of the Furniture 10,000 Posts Name Dropper
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    Just buy a cheaper car and job done.
  • foxy-stoatfoxy-stoat Forumite
    6.8K posts
    Fifth Anniversary 1,000 Posts Name Dropper
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    If your looking for a £20,000 loan then you should be on at least £40,000 a year, take home £2500 or thereabouts..... so you should have well over £1250 left in your bank at the end of each month......how much have you saved up since your financials have been like this?

    I would aim lower or save up for your £20,000 car.
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