Number of Agreements-Equifax.

Dandytf
Dandytf Posts: 4,779
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edited 18 February at 11:20AM in Credit file & ratings
Does this stop any Car Credit Application
This is seen as Red style Marker via Equifax, possibly more cra's.
I have currently eight Agreements, ranging from home improvements to techology.
Finally my current used EV is mid term, from tomorrow 23 of 48 repayments to make. 

Is it possible to be considered for Car Finance.
Going forward I'll be fine across 12/18/24 Months.

thanks
Replenished CRA Reports.2015 Zoe i nav -67-131 miles top charge. Savings depleted. VM Stream tv M250 Volted to M350 then M500.
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Comments

  • CliveOfIndia
    CliveOfIndia Posts: 1,184
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    I'm not sure I fully understand the question.  The number of credit agreements that you've currently got isn't, in itself, an issue as such.  What a lender will look at it the total amount of outstanding debt in relation to your income, alongside your credit history - i.e. have you been making all contractual payments to all of your debt on time every month?
    If you've had any missed or late payments, this will be viewed negatively by a lender.  Similarly, you're unlikely to be offered further credit if they assess that additional debt would take you over their affordability threshold.
    Are you considering a loan for a new (i.e. different) car to replace your current car?  Or would this be additional borrowing for another car as well as the one you've got?
  • Nasqueron
    Nasqueron Posts: 8,290
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    edited 1 February at 10:53AM
    Why are you trying to take out even more credit when you still have finance on your old car?
    Is your other finance things like the Apple kit, the house windows etc?

    The only thing that will determine whether you get credit is your income and your current debt and thus whether the lender believes you can service that debt as well as the other debt you have. It seems rather foolish to try and take on more credit for yet another car. It's highly likely given your low income (are you still on 50% pay at work and UC?) you can't afford your existing deals let alone more but that has never prevented more borrowing in the past, up until the DMP anyway...

    The 2015 Zoe had a range of 64-93 miles real world driving by the way according to Renault, the max 149 miles quoted max range was unlikely to be achievable 
  • Dandytf
    Dandytf Posts: 4,779
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    edited 1 February at 11:20AM
    @Nasqueron

    PT work continues+UC if benefits can be used dependent EV Dealership.
    My Sig includes 67 miles from almost Lowest charge experience, up to Max 131 miles mid 2023.
    That's my own Range experience, currently 85 miles Max -which is very good after Fierce albeit Short Winter.

    thanks
    Replenished CRA Reports.2015 Zoe i nav -67-131 miles top charge. Savings depleted. VM Stream tv M250 Volted to M350 then M500.
  • Dandytf
    Dandytf Posts: 4,779
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    @CliveOfIndia
    If I can source affordable Smart EV , then hopefully I can be accepted for Zoe trade in.
    Difficulty being is Low trade in value, could be 1-1.5k deficit against existing finance.
    I wonder why Equifax use 'number of agreements' as Negative factor.
    Maybe it's too early, I suspect 2015 Zoe trade in Value is going to diminish 12-24 months.

    thanks
    Replenished CRA Reports.2015 Zoe i nav -67-131 miles top charge. Savings depleted. VM Stream tv M250 Volted to M350 then M500.
  • CliveOfIndia
    CliveOfIndia Posts: 1,184
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    Dandytf said:
    @CliveOfIndia

    I wonder why Equifax use 'number of agreements' as Negative factor.
    Equifax - along with the other CRAs - will often use spurious data to make a so-called assessment of your credit-worthiness.  A common one being that they'll urge you to take out more credit cards to alter your utilisation percentage.  I'm sure the fact that they'll receive a kick-back from the card issuer for referring you has nothing at all to do with it !
    Likewise, the score that they give to you - completely meaningless from a lender's point of view.
    Look at it objectively - since they're not the ones lending you money, it matters not one jot how they view you.  A lender will use the raw data contained in your files to make their own assessment, which will take into account their own individual policies, risk appetite, target customer group, etc.
    Ignore pretty much anything the CRAs tell you - as long as the raw data they hold are factually correct, that's all that matters.

  • Dandytf
    Dandytf Posts: 4,779
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    edited 1 February at 12:43PM
    @CliveOfIndia
    I think Past declines advice then was 'Refer to your Cra' has made a few people 'auto check car reports'
    Before applying for Credit.
    My recent Smart EV interest is only as I find I'm using -1k miles p.a. with my current EV -no longer in production.
    Yesterday's Smart EV is already gone, I'm a very keen low mileage purchaser.
    I'm also arranging small isa partial withdrawal to help reduce existing Credit.
    I could 'try' one Smart Application -when next example is available.
    If unsuccessful, then I'll wait until Zoe is repaid.

    thanks appreciated.

    Replenished CRA Reports.2015 Zoe i nav -67-131 miles top charge. Savings depleted. VM Stream tv M250 Volted to M350 then M500.
  • Nasqueron
    Nasqueron Posts: 8,290
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    Having 7-8 finance agreements is a negative because you have debt to multiple lenders which affects your debt / affordability

    You should go to the Debt Free page and list your total debt (including all your credit cards) plus when the deals will end as well as your income and that would give a better idea.

    I would strongly suggest that you forget this idea of trading in an 8-9 year old EV given it'll be worth very little (chuck it in WBAC for a reality check) and keep using it rather than taking out even more finance - you were in a DMP before, you are spending like you want another
  • Dandytf
    Dandytf Posts: 4,779
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    @Nasqueron

    I haven't visited wbac since my exceptional offer had been made for 25k miles Clio tci- taking convenient step of dealership trade in -then Zoe -9yrs 25k miles last week, 2 yrs finance, No longer being made brand new.
    I would prefer to at very least see some kind of trade in value, though not likely when I check Ev's this and next year.
    Positive view of finances are a number of agreements expire through '24 more next year, leaving 2 longer terms.
    I hope to try EV purchase next year, could be decent year of changing Ev Make/Model.
    p.s. Exceptionally High OD is almost halved from Isa, one or two Smaller sums to repay lower debts.

    thanks
    Replenished CRA Reports.2015 Zoe i nav -67-131 miles top charge. Savings depleted. VM Stream tv M250 Volted to M350 then M500.
  • Grumpy_chap
    Grumpy_chap Posts: 14,361
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    Trying to summarise the thread as I can make out:
    • The OP has 8 credit agreements for various reasons including a car, home improvements and "technology".  This suggests a high level of debt.
    • The OP has part time work and UC.  This suggests a lower-range income level.
    • The OP is currently doing around 1k miles per year with their current car.
    • The OP has no savings (as per signature).
    I suspect that, rather than the number of credit agreements in place, lenders would see the OP's affordability as low and this would prevent the proposed new car credit being available.

    If the OP's car use is as low as it appears, rather than considering a change of car, a total change of transport type might be more appropriate. 
    Running a car for a very low annual mileage is expensive as there are fixed costs that still need to be covered, for example insurance. 
    If the OP sold the current car and does not replace it, that will reduce outgoings which can be used to build up savings and avoid future need to rely on debt.
    For such a low level of car use, walking, public transport and a mix of taxi services would quite possibly be cheaper overall.

    The OP would be well advised to visit the DfW (debt-free wanabee) area of the forum, then prepare and share their SoA (statement of affairs) so that they can get a full understanding of their financial positions and work to reduce reliance on credit.  That would set them up far more strongly for whatever the future may throw their way.
  • MorningcoffeeIV
    MorningcoffeeIV Posts: 1,875
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    edited 13 February at 8:55PM


    The OP would be well advised to visit the DfW (debt-free wanabee) area of the forum, then prepare and share their SoA (statement of affairs) so that they can get a full understanding of their financial positions and work to reduce reliance on credit.  That would set them up far more strongly for whatever the future may throw their way.

    It's been suggested to the OP many times over the years. But they have an addiction to taking on increasing amounts of debt, despite their reduced income and having been in a DMP previously. 

    Debt appears to be a badge of honour...

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