Turned down for loan......

Harry1804

I have been turned down for a car pcp with whom I have a pcp and my bank for a personal loan for a car.  Both have used credit agencies scores with whom I have defaulted over credit cards less than six years ago.  However, I intend to purchase a new car to replace the existing car using the same amount of pcp I am already affording.  My bank has many years of history on my account and is fully aware of my 'ins' and 'outs' and subsequently can see that my income far exceeds my outgoing, and, I will only be replacing the existing pcp, and, if I should fail to pay the pcp the bank can claim the car.   I am sure I will appear naive to some, but I know that I can afford the new car.  My income as a pension is guaranteed until my death, of course.  I wonder is there is a person that can override the 'automated results' using the credit score only!  The car dealerships I have spoken to say they have no sway with the credit agencies that they use.  However, I thought that the bank might still have a 'manager'.

Brie

are you saying that you already have a loan and are getting a second one?  the fact that you intend to replace one with the other may not be obvious to the lenders so you may need to end the first pcp before a new one can be had.  the alternative may be to buy a car using your credit card(s) and then looking for a 0% balance transfer to avoid huge interest charges.

Ebe_Scrooge

I agree with the previous 2 posters.  If you're looking for a loan/PCP in addition to an existing PCP, lenders will take the view that you're adding to your existing debt, and will base their affordability checks accordingly.

The "score" you see on the CRA reports means nothing as it forms no part of any lending decision.  Defaults, however, will have a bearing.

Grumpy_chap

Harry1804 said:

I have been turned down for a car pcp with whom I have a pcp and my bank for a personal loan for a car.  Both have used credit agencies scores with whom I have defaulted over credit cards less than six years ago.  However, I intend to purchase a new car to replace the existing car using the same amount of pcp I am already affording.  My bank has many years of history on my account and is fully aware of my 'ins' and 'outs' and subsequently can see that my income far exceeds my outgoing, and, I will only be replacing the existing pcp, and, if I should fail to pay the pcp the bank can claim the car.   I am sure I will appear naive to some, but I know that I can afford the new car.  My income as a pension is guaranteed until my death, of course.  I wonder is there is a person that can override the 'automated results' using the credit score only!  The car dealerships I have spoken to say they have no sway with the credit agencies that they use.  However, I thought that the bank might still have a 'manager'.

It is a bit confusing who you have PCP / loan with and who you are applying for a PCP / loan with, but it is quite possible that lenders are assessing your affordability on the basis of the new loan being in addition to (rather than instead of) the old loan.

Why do you need to change your car?
If you truly need to change your car, can you get a cheaper car that won't require finance?

MEM62

If the new PCP has been applied for with the same provider, then they will not be viewing this as additional borrowing.  They will be accustomed to clients taking out a new PCP deal as their old one ends.  There must be other factors that are causing them to reject the OP's application.  

Harry1804

MEM62 said:

If the new PCP has been applied for with the same provider, then they will not be viewing this as additional borrowing.  They will be accustomed to clients taking out a new PCP deal as their old one ends.  There must be other factors that are causing them to reject the OP's application.  

The car dealership and my bank know that I am changing an existing pcp for a new one.  I am told that I have been turned down by Experian, Transunion etc because I have defaulted on credit cards.  But the bank is aware that I am financially sound and wonder why they do not allow the loan.

400ixl

Harry1804 said:

MEM62 said:

If the new PCP has been applied for with the same provider, then they will not be viewing this as additional borrowing.  They will be accustomed to clients taking out a new PCP deal as their old one ends.  There must be other factors that are causing them to reject the OP's application.  

The car dealership and my bank know that I am changing an existing pcp for a new one.  I am told that I have been turned down by Experian, Transunion etc because I have defaulted on credit cards.  But the bank is aware that I am financially sound and wonder why they do not allow the loan.

Credit reference agencies don't turn you down and the credit score they give you is not used by the companies you applied to either. The companies will use the data supplied from the CRA's plus other data they have / get on you and will have their own criteria for whether they will give you credit.

Have you checked all of the credit reference agencies to check that the information they hold on you is accurate?

MrFrugalFever

Harry1804 said:

MEM62 said:

If the new PCP has been applied for with the same provider, then they will not be viewing this as additional borrowing.  They will be accustomed to clients taking out a new PCP deal as their old one ends.  There must be other factors that are causing them to reject the OP's application.  

The car dealership and my bank know that I am changing an existing pcp for a new one.  I am told that I have been turned down by Experian, Transunion etc because I have defaulted on credit cards.  But the bank is aware that I am financially sound and wonder why they do not allow the loan.

At the moment if you approaching the end of a current PCP arrangement, whilst you might be able to pay your £xxx per month currently you overall debt will be a lot less than a new car. For example, your remaining balance may well be say £10,000 on current agreement but you are looking at obtaining a new car with say, for example, a £25,000 balance, the lender will take that additional balance in to calculations amongst data held on your credit reports when making its decision.

Whether you already have an agreement with them, bank with them or believe you can afford the monthly payments is irrelevant. If they do not wish to lend a large sum of money to you then they won’t (and don’t have to either).

I would consider your options of purchasing your existing vehicle by paying off the GMFV.

SeanG79

Harry1804 said:

MEM62 said:

If the new PCP has been applied for with the same provider, then they will not be viewing this as additional borrowing.  They will be accustomed to clients taking out a new PCP deal as their old one ends.  There must be other factors that are causing them to reject the OP's application.  

The car dealership and my bank know that I am changing an existing pcp for a new one.  I am told that I have been turned down by Experian, Transunion etc because I have defaulted on credit cards.  But the bank is aware that I am financially sound and wonder why they do not allow the loan.

You are not financially sound if you have defaulted on credit cards. In the current climate with increased cost of living, higher interest rates, etc. your bank and PCP lenders obviously feel you are too high a credit risk. 

Do you need to change your car because you are at the end of the current PCP or some other reason?

Clive_Woody

How recent were the credit card defaults?

cymruchris

You haven't mentioned that I can see (not sure if what you've said in your first line is what I think it is or not) as to whether you are using the same company for the new PCP application as the one you are already using? If you're going via a new supplier/provider - then yes it'll likely be looked at as new lending on top of existing lending - whereas if you're going through your existing provider, they'd know the deal was coming to an end, and you just wanted to start afresh with a new vehicle.

So for clarification -  is it the existing provider - or a new company?