Loans and Credit score advise help

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johnno83
johnno83 Posts: 5 Forumite
in Loans
Hi All
I’m looking to secure a £20k loan in a couple of months to buy a new car. My credit score is excellent (970 with MSE Credit club) however my loan and credit card affordability is classed as v.weak? It makes absolutely no sense to me.

My mortgage is less than 20% of my salary, I have no debts and I’d consider myself to have a large chunk of disposable income (well over 50% of my salary). I have a couple of interest free loans on the books (sofa and carpet = £60 per month). Never had issues with credit card payments, debts or overdrafts.

The affordability score has been like that on my report for about 6-12 month now. I first noticed it when I changed my Natwest current account to a joint account with my wife – no idea if this affected it or if it was just a coincidence. Her credit score is good anyway and its not my main current account.

Any ideas why this is like this?
Could it be a glitch on Experian/MSE CC?
Will it ruin my chance of the loan?
Any advice or knowledge in this kind of thing much appreciated.
Thanks
Jack

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    The scores aren't a useful reflection of anything. Don't worry about them.

    They're not seen by anyone so you haven't ruined anything.
  • phillw
    phillw Posts: 5,594 Forumite
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    johnno83 wrote: »
    credit score is excellent (970 with MSE Credit club) however my loan and credit card affordability is classed as v.weak? It makes absolutely no sense to me.

    If you click Analyse your affordability score then does it should give a breakdown of the three things it uses to calculate that: Debt ratio, Credit utilisation & Disposable income

    It might help to know which of those is dragging it down.
  • johnno83
    johnno83 Posts: 5 Forumite
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    Debt ratio = Very Good
    Credit Utilisation = Very Good
    Disposable Income = Very Weak

    Another confusing element = when i search for loans in the loan eligibility section it tells me I have a 95 or 90% chance of acceptance for the majority.
  • Snooks_1617
    Snooks_1617 Posts: 1 Newbie
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    Can you advise did you apply for the loan? Was u accepted?
  • abc.xyz
    abc.xyz Posts: 107 Forumite
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    Is your financial info up to date?

    https://clubs.moneysavingexpert.com/creditclub/settings

    My disposable income is fair and I certainly don't have 50% disposable income.

    In any event, the affordability meter doesn't make one iota of difference to your chances of being accepted. Lenders do not see it. But it might affect which loans you see on Credit Club. Always best to use lenders' own eligibility checkers.
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    Just buy a cheaper car and job done.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
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    If your looking for a £20,000 loan then you should be on at least £40,000 a year, take home £2500 or thereabouts..... so you should have well over £1250 left in your bank at the end of each month......how much have you saved up since your financials have been like this?

    I would aim lower or save up for your £20,000 car.
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