Help & Advice

Rejected for car finance

Hi there, I recently applied to get finance in my name for a new car. It was rejected.

I do have a bad credit rating from missed payments in the past - however when i had a look at my credit report last night, one of the accounts (a phone company) had defaulted. The info on this is wrong - the dates are wrong and i paid off the full balance of the account so i don't understand how this has happened. I have disputed this. I have never received correspondence from them saying i owe money - but the credit report shows it has defaulted with £46!!

I have had my new phone contract for over two years, i have a credit card and have NEVER missed any payments. Can you advise if anyone would be able to help me and how much I'd likely get as a maximum?

I have paid my car for the last three years every month on time - but because the finance for this is in my Dads name it hasn't counted towards my credit rating. I just wish someone would give me the chance to prove that i am making my payments on time now etc. I am in full time employment clearing £1600 p/m.

Yvette


Answer

Hi Yvette, apologies for the delayed response. I hope you're well.

From what you have said you have a few late payments and a small default which shouldn't cause us too many problems in getting you approved. You have a clean credit card and a good income which is good to see.

A word of advice - you can actually place a note next to the default explaining the issues so that potential lenders can see this. Can i ask where you were rejected for car finance as it'll help me establish whether we have a good chance or not? I do have a good feeling that we can but that extra information will help me.

Just so you know, once accepted we provide a no obligation quote and you can buy a car from any dealer nationwide so please apply when you feel ready. Good luck and thank you for your time. Have a great evening. Rachel

Answer correct as of September 2016

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In this illustration your credit score is set to

Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

We compare products from 18 of the UK's top lenders to get you the best deal.

Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

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Set your budget

£
4 years

In this illustration your credit score is set to

Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

We compare products from 18 of the UK's top lenders to get you the best deal.

Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

CarFinance 247 is a broker and not a lender