Car Lease with Bad Credit Score - Confused

shellyk1
shellyk1 Posts: 19 Forumite
in Credit file & ratings
Hi everyone

I'm a bit confused. I'm looking to change my car as spending a lot of money in garage on it. I'm wanting to lease and wonder if anyone can recommend a company? In 2010 Aug, I was declared bankrupt. I then stupidly let a Catalogue account default in 2016, due to be disputing charges on it. My credit score at present sits at 294 very poor. I have a Capital one card with £98 balance and £200 limit all payments up to date and also a Cat Account with £350 limit and £75 on it. Both my husband and I earn good money and are in a good position now with Money. Although I don't seem to be able to gain credit worthiness anywhere?? Where do I go from here?
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Comments

  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Step 1 - ignore the scores

    Step 2 - for car loans/leases they also look at incomings and outgoings - are these sufficient?

    What do all your credit files say? Again, ignore the scores and ratings
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    shellyk1 wrote: »
    I have a Capital one card with £98 balance and £200 limit all payments up to date and also a Cat Account with £350 limit and £75 on it.

    Are you clearing these in full each month?

    If not, your answer is likely to be there.
  • System
    System Posts: 178,092 Community Admin
    Photogenic Name Dropper First Post
    edited 10 May 2018 at 7:42PM
    shellyk1 wrote: »
    Hi everyone

    I'm a bit confused. I'm looking to change my car as spending a lot of money in garage on it.
    You'll spend a whole lot more in finance and depreciation on a newer car. Whether you get a new car on a lease, PCP or whatever you are the one who is paying for the largest chunk of depreciation a car has per year. It isn't uncommon for that to be several grand a year for the first couple of years. You can pretty much rebuild your current car including engine, gearbox, suspension and brakes for less than the depreciation you'd be funding in the first couple of years with a new car or in some cases even the first year.
    Both my husband and I earn good money and are in a good position now with Money. Although I don't seem to be able to gain credit worthiness anywhere?? Where do I go from here?

    Fix the car you've got, put money away to buy a newer one in a year or two's time. Buying a new/newish car never saves you money ever.
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
    Name Dropper First Anniversary First Post
    Buy 1 with cash.
  • wharty
    wharty Posts: 426 Forumite
    My wife got a 2 year old 208 this week. Bankrupt in 2013.
    Got it on HP at a decent rate. Earning around 60k between us with no debts.

    Try confused.com they are brilliant. Look at the car finance on there they give you a guaranteed rate.

    Remember with HP its not your car until the final payment so its less risk for the lender as the loan is secured on the car.

    You may be surprised!

    We only did it because we are building our credit history and thought it would help.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    wharty wrote: »

    We only did it because we are building our credit history and thought it would help.

    There are far, far better and cheaper ways.
  • System
    System Posts: 178,092 Community Admin
    Photogenic Name Dropper First Post
    wharty wrote: »
    My wife got a 2 year old 208 this week. Bankrupt in 2013.
    Got it on HP at a decent rate. Earning around 60k between us with no debts.

    Ebay has dozens of them for sub £10k. You should be able to have bought that outright in cash. Certainly cheaper than paying interest on a loan you don't need. Never get debt you don't need to build up a credit history.
  • wharty
    wharty Posts: 426 Forumite
    Deleted_User wrote: »
    There are far, far better and cheaper ways.

    Apart from credit cards, what else?
  • wharty
    wharty Posts: 426 Forumite
    Tarambor wrote: »
    Ebay has dozens of them for sub £10k. You should be able to have bought that outright in cash. Certainly cheaper than paying interest on a loan you don't need. Never get debt you don't need to build up a credit history.

    The car was 9k and yes we could have bought it outright three times over but we to improve our payment history and we need the cash for a house deposit and we cant get a loan.


    We are now selling our other car for 6k that we own outright to give us the rest of the deposit whilst also building our repayment history.

    Sure we are paying interest but its not high and it will help.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    wharty wrote: »
    Apart from credit cards, what else?

    That's all you need.

    You can throw in mobile contracts and catalogues if you like, but paying interest for a credit history is a mug's game.
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