Personal loan applications declined, not sure what to do to purchase a car.

joocyglutes

Hi all, 
My current personal lease deal is finishing in August and I want to purchase a car. Looking to spend £4000-5000 on it.
My credit score is 940, I have my mobile phone (£22 a month) my lease car (£78 a month) and £200 on a 0% credit card through my bank.
I've applied to two providers who I scored 80% on the eligibility calculator on MSE. However, the first application I didn't get the 4% rate, I was offered 20%, and the other provider just flat out rejected me.

So now I'm stuck and don't know how I'm going to purchase a vehicle? All my savings are in my Help to Buy account which I don't want to use or I lose my bonus. I need a vehicle to get to work.

Mercdriver

Think carefully before making any further applications too soon as it will affect your success in getting accepted.  I had a similar experience with 80% on two lenders at 3% with Hitachi eventually offering 25% and Tesco who honoured the 3%.  Apparently with Tesco being a clubcard member assists in the checks.  Have you checked your actual credit file, not just the score?

joocyglutes

Mercdriver said:

Think carefully before making any further applications too soon as it will affect your success in getting accepted.  I had a similar experience with 80% on two lenders at 3% with Hitachi eventually offering 25% and Tesco who honoured the 3%.  Apparently with Tesco being a clubcard member assists in the checks.  Have you checked your actual credit file, not just the score?

Hi, thanks for your reply.
Yes I have checked my file, the loan affordability is listed as weak. My salary is £20,000 and I have very little outgoings as I live with parents. (£78 car lease, £22 phone, £10 to credit card, food+ petrol.  Car Insurance was paid off in full) 
I don't think I'm on the electoral roll, I have just registered for that in case that may make a difference? 

I have just tried the post office, and was also rejected from there, it did say it would not leave a footprint on my credit. Is it worth trying tesco where I have been a clubcard member for years?

[Deleted User]

You need to check your actual files.  Not credit scores or affordability ratings, which are meaningless.

Until you've checked all three files, stop applying for credit.

Revolving such a small card balance, even at 0%, looks a little odd.

joocyglutes

Deleted_User said:

You need to check your actual files.  Not credit scores or affordability ratings, which are meaningless.

Until you've checked all three files, stop applying for credit 

What is it I am specifically looking for? I can see my report on the MSE credit club.

Mercdriver

Being on the electoral roll will help, living with parents will lower your chances.  This is important:  you MUST stop making applications for credit.  You still have more than a month til you need a new car, you need to stop making applications to allow your credit file to recover from 3 applications in a short period of time.  Because of COVID and the possibility of a deep recession, lenders may be tightening their affordability algorithms.  what is the credit limit on your credit card?

Scrapit

You need to check all the credit reporters, the MSE one is a little off, mine says 999 out of 999 but I have a few things that mean I cannot have a "maxed" credit rating. Also you have options in how to get/buy a car. Pcp, hp, lease etc rather than just getting a loan.

joocyglutes

Mercdriver said:

Being on the electoral roll will help, living with parents will lower your chances.  This is important:  you MUST stop making applications for credit.  You still have more than a month til you need a new car, you need to stop making applications to allow your credit file to recover from 3 applications in a short period of time.  

Ok thanks, I will refrain from applying for anymore. Just wanted to have everything in place for when I return the lease car, rather than leave it until the last minute, and obviously I'm a bit shocked/panicking that i'm not eligible for a loan.

Mercdriver

joocyglutes said:

Mercdriver said:

Being on the electoral roll will help, living with parents will lower your chances.  This is important:  you MUST stop making applications for credit.  You still have more than a month til you need a new car, you need to stop making applications to allow your credit file to recover from 3 applications in a short period of time.  

Ok thanks, I will refrain from applying for anymore. Just wanted to have everything in place for when I return the lease car, rather than leave it until the last minute, and obviously I'm a bit shocked/panicking that i'm not eligible for a loan.

What's the credit limit on your credit card and is it on a 0%?  If so how long for?  If iit is one of those Capital One low credit limit types it might do more harm than good.

joocyglutes

Mercdriver said:

What's the credit limit on your credit card and is it on a 0%?  If so how long for?  If iit is one of those Capital One low credit limit types it might do more harm than good.

The credit limit is £1500, 0% until november this year. I had this with my bank, first direct to help build my credit score.

Mercdriver

How long have you been with your bank?  Did you not consider applying from your own bank for a loan?