Car Lease with Bad Credit Score - Confused
Comments
-
Deleted_User wrote: »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.
Maybe so, but if we cant get a mortgage we pay more rent which is worse than the interest on the car loan. We are also releasing 6k from a car we own to top up our deposit.
I understand paying interest (3k over 5 years) isn't a great thing but neither is paying more rent (9k per year) over 12/24 months.
I just see it as killing two birds with 1 stone. Getting repayment history and hopefully getting a mortgage. Oh and a shiny new car!0 -
Except the loan is more likely to reduce your chances of a mortgage than increase it.
So it's only the one bird you've killed.0 -
Deleted_User wrote: »Except the loan is more likely to reduce your chances of a mortgage than increase it.
So it's only the one bird you've killed.
Nah, maybe in the short term but Affordability is still great anyway. Our chances wont be any worse in my opinion(which is poor) but with a few finance payments it can only get better. Plus mine and my wife's pay rises next month cover the car payments.
Can you tell I'm a glass half full person?
As D-ream once said "Thiiiiiiings can only get betterrrrr"0 -
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.
The problem you now have though is you've got £9000 on finance which will be £9000 less a mortgage company is going to be willing to lend to you. You also have repayments which will have an impact on an affordability test when you apply.
Having a credit card, doing your normal monthly spending and clearing it in full would have achieved the same thing without paying interest and even getting cash back.
Can you tell I'm a glass half full person?
As D-ream once said "Thiiiiiiings can only get betterrrrr"
And how well has your view on finance worked for you in the past? Oh that's right, you were bankrupt.
Judging by the posts on this and the loans boards by people who have been bankrupt in the recent past it looks like it needs to go back to how it used to be 15 years ago where you were bankrupt for 3 years, not 12 and even 6 months as it is today as clearly it isn't teaching the lessons it should.0 -
Nah, maybe in the short term but Affordability is still great anyway. Our chances wont be any worse in my opinion(which is poor) but with a few finance payments it can only get better. Plus mine and my wife's pay rises next month cover the car payments.
Can you tell I'm a glass half full person?
As D-ream once said "Thiiiiiiings can only get betterrrrr"
Are you aware that most utility companies report on your credit file now, just paying those each month by DD can instill a good credit history, there are a lot of myths blowing around as to what does and docent help your credit score, as some like to say, in reality its credit history that counts.
You get all kinds of questions on this forum, about what to do for the best to increase your chances of a mortgage acceptance, the truth is every lender has different criteria, so there is no right or wrong answer, having a good repayment history, present on the electoral role, no negative info, such as defaults or late payments are all basic requirements, after that you must just trust to luck that you are what the lender is looking for.
I would certainly wait until the effects of the Bankruptcy have gone before applying.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
sourcrates wrote: »Are you aware that most utility companies report on your credit file now, just paying those each month by DD can instill a good credit history, there are a lot of myths blowing around as to what does and docent help your credit score, as some like to say, in reality its credit history that counts.
You get all kinds of questions on this forum, about what to do for the best to increase your chances of a mortgage acceptance, the truth is every lender has different criteria, so there is no right or wrong answer, having a good repayment history, present on the electoral role, no negative info, such as defaults or late payments are all basic requirements, after that you must just trust to luck that you are what the lender is looking for.
I would certainly wait until the effects of the Bankruptcy have gone before applying.
Fully aware, I check my reports on an almost daily basis. Every little helps. Also aware I have 9k less to spare on a mortgage with the loan, but as I said before our affordability is fine.0 -
Why are you checking reports on a daily basis when they get updated monthly?
And what are you checking for?0 -
Why are you checking reports on a daily basis when they get updated monthly?
And what are you checking for?
Why not? It’s something to do. My files are all sorted after bankruptcy, it’s something I like looking at. I like looking at my bank balance, my wife likes looking at Facebook, nothing really changes, same old people going on about the same thing day after day.
And no I don’t care about the score it’s made up and only I can see it. So I read anyway.0 -
Leasing a car is a possibility if you have bad credit. There are a handful of firms that look at more than just a credit rating for eligibility.
But, I wouldn't go for a luxury model as the monthly costs are gonna be high. The thing with bad credit finance/leasing is the cost. The firm is taking more of a risk compared to an applicant with a great credit rating. So, they charge more.
So, the more the car is worth the higher the price.
Think you can lease a Toyota Yaris type vehicle for about £180 per month via a lease deal (new or nearly new). CVS Ltd have a pretty good name and they are said to be a small, family run business that looks beyond credit files.
Watch out for Hippo for leasing as I don't think they actually lease to poor credit (hire purchase). But, don't hold me to that as it's just something I heard.
Anyhow, best of luck to your new motor.0 -
Reading through this thread.
1 The credit score is the rating devised by the CRA, and is their rating. It is part of the bigger picture, so when you apply for credit, the score is only part of the process. The loan company will have its own scoring criteria.
2 Are you on the electoral roll? If not register at
https://www.gov.uk/register-to-vote
3 Lenders typically work out your affordabilty, but apply a multiple of between 3 and 3.5 times your debt to reduce your affordability. So a £9000 loan, will lower the amount you can borrow from a mortgage by around 27K.
4 If you are using a service such as clearscore, noddle or MSE creditclub, your scores and reports only update once in the month. If you are subscribing to Equifax, Experian or Callcredit, you can get a report daily, but the lenders only update once a month, although they will be different days depending upon the lender.
Searches will show the next day on the reports. Theres more to life than looking at credit reports!
5 However as you are obsessed with checking daily!!, what are you looking at. Have you checked that for example that the address associations are correct? That the accounts are showing roughly the expected figures?
6 Have you thought about using the credit ladder website. This allows your rent payments to be used to record a steady credit history. See https://www.creditladder.co.uk/0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards