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    • shellyk1
    • By shellyk1 10th May 18, 3:52 PM
    • 19Posts
    • 3Thanks
    shellyk1
    Car Lease with Bad Credit Score - Confused
    • #1
    • 10th May 18, 3:52 PM
    Car Lease with Bad Credit Score - Confused 10th May 18 at 3:52 PM
    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?
Page 1
    • Gary_Dexter
    • By Gary_Dexter 10th May 18, 4:02 PM
    • 2,094 Posts
    • 1,174 Thanks
    Gary_Dexter
    • #2
    • 10th May 18, 4:02 PM
    • #2
    • 10th May 18, 4:02 PM
    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
    • zx81
    • By zx81 10th May 18, 4:04 PM
    • 18,620 Posts
    • 19,872 Thanks
    zx81
    • #3
    • 10th May 18, 4:04 PM
    • #3
    • 10th May 18, 4:04 PM
    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.
    Originally posted by shellyk1
    Are you clearing these in full each month?

    If not, your answer is likely to be there.
    • Tarambor
    • By Tarambor 10th May 18, 7:39 PM
    • 3,549 Posts
    • 2,624 Thanks
    Tarambor
    • #4
    • 10th May 18, 7:39 PM
    • #4
    • 10th May 18, 7:39 PM
    Hi everyone

    I'm a bit confused. I'm looking to change my car as spending a lot of money in garage on it.
    Originally posted by shellyk1
    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.
    Last edited by Tarambor; 10-05-2018 at 7:42 PM.
    • DCFC79
    • By DCFC79 10th May 18, 7:52 PM
    • 32,556 Posts
    • 20,486 Thanks
    DCFC79
    • #5
    • 10th May 18, 7:52 PM
    • #5
    • 10th May 18, 7:52 PM
    Buy 1 with cash.
    • wharty
    • By wharty 11th May 18, 4:05 AM
    • 420 Posts
    • 640 Thanks
    wharty
    • #6
    • 11th May 18, 4:05 AM
    • #6
    • 11th May 18, 4:05 AM
    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.
    • zx81
    • By zx81 11th May 18, 5:38 AM
    • 18,620 Posts
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    zx81
    • #7
    • 11th May 18, 5:38 AM
    • #7
    • 11th May 18, 5:38 AM

    We only did it because we are building our credit history and thought it would help.
    Originally posted by wharty
    There are far, far better and cheaper ways.
    • Tarambor
    • By Tarambor 11th May 18, 3:03 PM
    • 3,549 Posts
    • 2,624 Thanks
    Tarambor
    • #8
    • 11th May 18, 3:03 PM
    • #8
    • 11th May 18, 3:03 PM
    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.
    Originally posted by wharty
    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
    • By wharty 11th May 18, 7:39 PM
    • 420 Posts
    • 640 Thanks
    wharty
    • #9
    • 11th May 18, 7:39 PM
    • #9
    • 11th May 18, 7:39 PM
    There are far, far better and cheaper ways.
    Originally posted by zx81
    Apart from credit cards, what else?
    • wharty
    • By wharty 11th May 18, 7:44 PM
    • 420 Posts
    • 640 Thanks
    wharty
    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.
    Originally posted by Tarambor
    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.
    • zx81
    • By zx81 11th May 18, 8:23 PM
    • 18,620 Posts
    • 19,872 Thanks
    zx81
    Apart from credit cards, what else?
    Originally posted by wharty
    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.
    • wharty
    • By wharty 11th May 18, 8:48 PM
    • 420 Posts
    • 640 Thanks
    wharty
    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.
    Originally posted by zx81
    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!
    • zx81
    • By zx81 11th May 18, 9:12 PM
    • 18,620 Posts
    • 19,872 Thanks
    zx81
    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.
    • wharty
    • By wharty 11th May 18, 9:26 PM
    • 420 Posts
    • 640 Thanks
    wharty
    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.
    Originally posted by zx81
    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"
    • Tarambor
    • By Tarambor 12th May 18, 11:21 AM
    • 3,549 Posts
    • 2,624 Thanks
    Tarambor
    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.
    Originally posted by wharty
    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"
    Originally posted by wharty
    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.
    Last edited by Tarambor; 12-05-2018 at 11:25 AM.
    • sourcrates
    • By sourcrates 12th May 18, 2:07 PM
    • 15,259 Posts
    • 14,357 Thanks
    sourcrates
    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"
    Originally posted by wharty
    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.
    Last edited by sourcrates; 12-05-2018 at 2:11 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
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    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

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    • wharty
    • By wharty 12th May 18, 5:20 PM
    • 420 Posts
    • 640 Thanks
    wharty
    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.
    Originally posted by sourcrates
    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.
    • Gary_Dexter
    • By Gary_Dexter 12th May 18, 7:35 PM
    • 2,094 Posts
    • 1,174 Thanks
    Gary_Dexter
    Why are you checking reports on a daily basis when they get updated monthly?

    And what are you checking for?
    • wharty
    • By wharty 12th May 18, 8:07 PM
    • 420 Posts
    • 640 Thanks
    wharty
    Why are you checking reports on a daily basis when they get updated monthly?

    And what are you checking for?
    Originally posted by Gary_Dexter
    Why not? Itís something to do. My files are all sorted after bankruptcy, itís 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 donít care about the score itís made up and only I can see it. So I read anyway.
    • rockey100
    • By rockey100 27th Jul 18, 4:20 PM
    • 27 Posts
    • 37 Thanks
    rockey100
    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.
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