Hi, does anyone have a clue how lending works? My credit fikes are all clear I want to get a car on the advanced payment deal. My friend who has a fair bit of credit card debt has no problems getting a car but cannot get any more credit cards. Are the 2 things looked at differently? I get alerts from credit score etc telling me I have new credit cards deals available to me but only have a few I would be accepted for when I follow the links. I don’t want any more credit cards but am nervous about being turned down for the car
Creditors do not see a "score" as such. They look at your history. A clean history makes them wonder why. Modest credit card usage demonstrates that you repay the debts. They also weigh up the use of the cc debt ---- if you use near the max credit they wonder why you appear to "depend" on credit. If you use a modest amount of the credit limit avaialble, it points to sensible use. Then they look at the total potential credit you have available and compare this to your ability to repay (income vs. expenditure) if you maxed them all out. PCP deals are looked at differently to loans, as they are, effectively, secured on the car.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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