Black Horse declined my application- HELP

citylife

Today I went to motorpoint to view a car I was interested in.  

My current car is fully paid off so I owe nothing. 

Did had some difficulties in the past being out of work and struggled to pay for the car, bills etc 
one defaulted which will stay on my file 6 years, the rest missed payments, all updated and paid off.  So had no debts or missed payments since 2019.  

I think I have 3 years left for the default to come off my credit file.  

Life got better infact pretty-good. I landed a permanent job triple salary.  Haven’t took out any loams or use credit cards since I sold my house and paid all off debts etc. bought house (it was high increase mortgage fixed even through I was earning pretty good I couldn’t get a decent mortgage).  Now recently got married)

my car is getting old now and my job involved driving now need to return to office since working from home during lockdown.

Motorpoint stated Black Horse declined my application mainly because  missed payments in the past years 3 years ago.  My credit score is now 617 equifax  and 867 Experian. 

Motopoint said the only way I can get finance is if it’s in my husband’s name because he’s has a clean credit file  

I don’t think it’s fair. 
is it because I haven’t changed my last name or is it the default?  It wasn’t a big sum and was paid off.   I don’t want to take out a high interest finance Black Horse’s pCP finance is perfect .  Was thinking of calling  Black Horse Would they give me a chance ? 😞

MorningcoffeeIV

The problem is your poor credit history, not the pretend credit scores.. The lender gets to decide what is fair, as it's their money.

Buy a car with cash from your savings and avoid worsening your credit history.

MrFrugalFever

Firstly, Blackhorse would NOT have told Motorpoint why they declined you, at best they’d have sent a generic document asking them to pass on to you (legally have to) which would likely suggest that you check your credit reference agency reports. Blackhorse will NOT tell you either (although you seem to know what is holding you back).

You have the right to appeal within 7 days.

You also have the right to use another financing company. CarFinance24/7 work on behalf of panel of lenders to supply HP and PCP on used cars, might be worth a chat with them, however you’ve got 1 hard search on your file now so you possibly can apply once more but that may be your lot until 3-6 months time as lenders may perceive you to be desperate for credit.

Having your partner apply for the finance with Blackhorse in lieu of you is called fronting and would be classed as an accommodation deal which is strictly against FCA regulations, I can’t believe motorpoint even suggested such a thing!!

flashg67

To add to the above reply - You might be ok using a partner etc to get the finance - have a look at:-

 www.nationwidevehiclecontracts.co.uk/guides/ask-nvc/accommodation-deals-and-car-leasing

 - under the section

What is and isn’t allowed?

LunaLater

For whatever reason the lender doesn’t feel comfortable lending you money. Given your history that’s understandable.

Rather than pondering the why and wherefore of this, why not use it as the opportunity to start the move from borrowing to buy to saving up instead?

If your car is currently working then stick with it, and start putting away at least (and preferably more) than your loan would be costing you each month.

There’s every chance that in six months or a year’s time you can get a bit of an upgrade without borrowing.

CottonTail

Unfortunately its the prime example of why you should do EVERYTHING not to miss a payment. you sound like a very feast and famine financial situation and look like a risky lend considering your earlier problems and now having a big mortgage overhead. Just keep the old car going for a few more years im sure it will be fine to spend a little money on it. PCP are always a total rip off. Get a better rate bank loan (when credit file not bad) and a more reasonable priced car if you can.

DullGreyGuy

citylife said:

Motorpoint stated Black Horse declined my application mainly because  missed payments in the past years 3 years ago.  My credit score is now 617 equifax  and 867 Experian. 

Motopoint said the only way I can get finance is if it’s in my husband’s name because he’s has a clean credit file  

I don’t think it’s fair. 
is it because I haven’t changed my last name or is it the default?  It wasn’t a big sum and was paid off.   I don’t want to take out a high interest finance Black Horse’s pCP finance is perfect .  Was thinking of calling  Black Horse Would they give me a chance ? 😞

They are guessing, lenders never say why credit is accepted or declined but too many people try and guess. You always just get a generic check your credit file response. Their lending criteria will be a closely guarded corporate secret.  The scores from the credit agencies are irrelevant. No lender ever sees them and they are just a marketing gimmick to sell products/services by the CRAs. 

Not sure why you think your surname is relevant... its not just your "husbands name" but your husband applying for the credit they are suggesting. 

We are at the beginning of a recession with a cost of living crisis, it'll be no wonder that lenders will be tightening their lending criteria and turning down some of the riskier applicants than 6 months ago they may have accepted. Lenders look at history not the CRAs own scores, and you admit yours is less than perfect and so in the current climate you may struggle to get finance outside of the sub-prime space. 

Farfetch1

DullGreyGuy said:

citylife said:

Motorpoint stated Black Horse declined my application mainly because  missed payments in the past years 3 years ago.  My credit score is now 617 equifax  and 867 Experian. 

Motopoint said the only way I can get finance is if it’s in my husband’s name because he’s has a clean credit file  

I don’t think it’s fair. 
is it because I haven’t changed my last name or is it the default?  It wasn’t a big sum and was paid off.   I don’t want to take out a high interest finance Black Horse’s pCP finance is perfect .  Was thinking of calling  Black Horse Would they give me a chance ? 😞

They are guessing, lenders never say why credit is accepted or declined but too many people try and guess. You always just get a generic check your credit file response. Their lending criteria will be a closely guarded corporate secret.  The scores from the credit agencies are irrelevant. No lender ever sees them and they are just a marketing gimmick to sell products/services by the CRAs. 

Not sure why you think your surname is relevant... its not just your "husbands name" but your husband applying for the credit they are suggesting. 

We are at the beginning of a recession with a cost of living crisis, it'll be no wonder that lenders will be tightening their lending criteria and turning down some of the riskier applicants than 6 months ago they may have accepted. Lenders look at history not the CRAs own scores, and you admit yours is less than perfect and so in the current climate you may struggle to get finance outside of the sub-prime space. 

To be fair, "we don't lend to subprime" is par for the course for prime lenders and not exactly a "closely guarded corporate secret."

I wouldn't be surprised if this information was offered to an applicant, as I said, it's fairly common that those with defaults on their file are straight declines.

martinbainbridge1975

I would look at your credit files online to see that the data is correct, and also talk to black horse for the reason why. A friend of mine was declined and when we investigated found a kitchen he had on 0 per cent was being paid every month on the dot, but on his file they had marked down 9 missed payments in error.  He had some older missed payments but nothing for 2 years plus - once corrected they overturned the declined on appeal.

criteria will likely be tighter due to the current climate, would imagine lenders could be a little more picky with accepting applications

Farfetch1

martinbainbridge1975 said:

I would look at your credit files online to see that the data is correct, and also talk to black horse for the reason why. A friend of mine was declined and when we investigated found a kitchen he had on 0 per cent was being paid every month on the dot, but on his file they had marked down 9 missed payments in error.  He had some older missed payments but nothing for 2 years plus - once corrected they overturned the declined on appeal.

criteria will likely be tighter due to the current climate, would imagine lenders could be a little more picky with accepting applications

Why would you talk to Black Horse for the reason when the reason was already given? Missed payments and a default, which is an instant decline with most mainstream lenders.

They DO NOT have to justify or explain their lending decisions to customers.