Car Finance Issue

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kot
kot Posts: 47 Forumite
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in Credit file & ratings
Hi There
I wonder if somebody could give me some advise. We went to look at entering into a PCP deal for a vehicle. My wife made the application and was declined, the sales guy immediately asked me if I would like to make the application and I to was declined. We have no real debt to speak of, a couple of catalogue accounts and a credit card all with small balances that are paid on time etc. We went away and got some advise about building our credit history with a view to making a new application in a few months. We were then contacted by the dealership and told the sales guy had made the applications incorrectly and put us both through the same company which would immediately see the second application declined. They have said they have a different company which they use and are asking if we would like to try through that.. my question is.. Are you ok to do this as I thought when you had an application declined you should wait 3 months before making another or it could have a negative impact on your credit report ? rather confused. Any help would be greatly appreciated. Thanks

Comments

  • BoGoF
    BoGoF Posts: 7,099 Forumite
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    Suppose the main question is how much you earn and how much is the car in question?
    Have you viewed your credit files to see whats on their?
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    They can use a different finance company yes - doesn't mean you'll be accepted and that the APR and deposit amount required etc. will be the same as originally disucssed.

    Also there will be more hard searches on your credit files
  • kot
    kot Posts: 47 Forumite
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    We were not even asked what our household income was. We did go prepared with income/expenditure. We've never done anything like this so did not really know what to expect. All we did was checked our clearscore ratings which I know dont have a great deal of relevance and they are both good. Im happy that we might need to build more of a credit management history. But is it ok to make a 3rd application from the same address so soon after Fridays debacle? The dealership are at fault here because the guy did not really know what he was doing and they have phoned today apologising..
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    You're correct - the scores are completely irrelevant.

    Searches and credit history isn't linked to addresses but the individual people.

    So the search will be recorded against you as a person, not your dwelling.
  • Shakin_Steve
    Shakin_Steve Posts: 2,701 Forumite
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    I find it hard to believe that the car dealership tried to gain a credit deal for you without knowing what your income is. How the hell can any lender make a decision without an affordability check. Something not right and I would be very careful here. If they say they can get you credit, go over the agreement with a fine tooth comb. I've got a feeling that this could turn out to be a very expensive car.
    I came into this world with nothing and I've got most of it left.
  • BoGoF
    BoGoF Posts: 7,099 Forumite
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    A credit application without asking for income details? Seems strange to me
  • kot
    kot Posts: 47 Forumite
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    This is a major franchise.. All they took were name address and employment status hit a button and it came back declined.. We were a little stunned and asked why no financial details were taken, he said he didn't need them. The idea was vehicle in wife's name with myself paying monthly for her from my salary.. The whole application appears to have been dealt with incorrectly and the guy has been sacked over the whole incident.. They phoned today full of apologies.. I was just concerned that making a 3rd application might have a detrimental effect on my credit record..
  • System
    System Posts: 178,093 Community Admin
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    kot wrote: »
    The whole application appears to have been dealt with incorrectly and the guy has been sacked over the whole incident..

    Can guarantee he hasn't, that's just flannel the dealership is feeding you to placate you so you don't go elsewhere.
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
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    Hi Kot


    The credit application will have left a footprint on your credit file. These are recorded for 12 or 24 months, depending on which credit reference agency it is. Multiple footprints in a short space of time usually go against you for future applications because it will look like you are very keen to obtain credit but are being declined. You may want to be cautious about applying again straight away.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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