Self Employed - Great Credit score but no earnings for last 4 months due to Covi

MATTR5

Hi - I normally have a great credit score well above average - Im in Travel and self employed and haven't earnt anything for May-July - I have in that time received £4k self employed grant and about £50k tax free cash from pension (I turned 55 in April) - I have £10k+ available on credit cards with not a penny used - Im about to apply for a Car Lease and am having a panic I wont pass the credit check - Id much rather Lease than Buy for many reasons - Does anyone know if the 4 mths no income will trash my ability to get Credit/Lease - ps the Lease is £2300 upfront (I'll pay that cash) and £285 apx pcm lease - for 24 mtsh - maybe they will let me pay that upfront? Thanks in anticipation for any guidance

sourcrates

Hi,

Your post firstly begs the question, what became of the 50 grand ?

That would have bought almost any reasonable car.

For most types of credit an income of some sort will be required.

MinuteNoodles

Lenders are starting to massively tighten up on self employed and freelancers. Sainsbury's have just announced they're no longer lending to the self employed. If you've currently got a car that's working fine I'd use that or I'd buy something cheap for a couple of grand to keep you mobile until you're back working again. I certainly wouldn't be committing to £3k+ a year in repayments when you're doing one of the jobs or businesses the government has deemed to be non-essential and will have no problem closing at the drop of a hat should local Covid numbers rise.

MalMonroe

Why not just pay cash for a car? That way you won't pay any interest and if you have the ready cash it would seem to make more sense. Also, given the current financial climate and the nature of your business, it may be wiser to just hang on for a couple more months. Or rather than take a loan and have two years of repayments, you could buy a car on one of the credit cards, which will protect you under Section 75 if anything goes wrong. 

Malkytheheed

Do you really need a new car? I don't want to be uduly harsh but if you are working in travel....do you really see your situation improving in the next 6 months...? I would be massively massively cutting back and hunkering down right now if I worked in that industry. 

MATTR5

Thanks Guys - I wish this site told me when people replied by email - maybe i need to look at my settings
The Tax Free cash went mainly on Mortgage and Home Improvements
I've decided against the Car after all - mine is only 2018 and I wanted to go electric (I hired a Tesla and loved it but cant afford one of those) - I testdrove a Peugeot E2008 on Tuesday and hated it so much Ive decided to keep my Diesel for a couple more years - Thanks for all the answers - shocked about Sainsburys but good to know 

Malkytheheed

MATTR5 said:

Thanks Guys - I wish this site told me when people replied by email - maybe i need to look at my settings
The Tax Free cash went mainly on Mortgage and Home Improvements
I've decided against the Car after all - mine is only 2018 and I wanted to go electric (I hired a Tesla and loved it but cant afford one of those) - I testdrove a Peugeot E2008 on Tuesday and hated it so much Ive decided to keep my Diesel for a couple more years - Thanks for all the answers - shocked about Sainsburys but good to know 

Good plan. Covid will be over soon (I'm confident) and then we can get back to travelling with a vengance in 2021. Then get a new car. EV is the way to go for sure. Look at the all electric Renault Zoe. it's small but aparently VERY good.