MSE Credit Club affordability

An affordability assessment is based on a number of factors. These include but are not limited to; the overall amount of credit utilized, income, employment status and account handling & status with other lenders.

The amount of disposable income remaining is not a sole contributor, therefore having £500 spare per month does not automatically consider further borrowing requests as affordable.

Simmy77 wrote: »

Thanks for the reply

My Credit Score is 982

Income approx £1250 month

Outgoings £480 month

1 loan outstanding £10,000 initially, owe £5,800 now

2 credit cards, one interest free with £300 on it, limit of £1500 other used for shopping and paid in full monthly limit of £9,500

Home owned outright

I'm self employed so don't know if that could be a factor.

Actual credit report perfect apart from this affordability

All lenders use their own affordability assessment. It is based on the type of credit, amount of credit and the demographic of these checks are normally based on whether the provider is mainstream or subprime category.

Thanks for providing an example of your financial situation, however I am not a lender and therefore cannot state whether those figures are enough to equal good or bad affordability.

Out of the credit you have stated however, I would imagine that the £10,000 loan would have a greater impact on affordability than the credit card usage mentioned.

As is the cliche here, ignore the credit score provided, it is not an accurate representation of whether a lender would accept you or not.

If you have £500 a month spare why do you have a loan (or why are you not clearing it off quickly)?

Spare cash is not seem by the lenders, only income and loan/CC payments