Credit Rating, Debt Levels and PCP Plans
Discussion
I'm planning on leasing a new car using a PCP plan over three years. Due to inconsistencies with previous addresses on my credit file my Experian rating was 'Poor'. I've now fixed this and now it's 'Good' but because of this I had my original attempt to setup the PCP declined a few weeks ago.
My Experian account flags up two other warnings too, one being that I'm not on the electoral register. This should change shortly as I filled in the form when I moved house over a month or so ago. The other states that I have a 'high level of debt'. I have a loan which I owe about £1k to and a credit card which I owe about £300. My file states that I always pay the loan on time and I pay the credit card on time and in full.
To me this all seems in order; but when I try to apply for the PCP again, would it be worth doing so after I've paid off my credit card this month? I just want to avoid being declined for something that's avoidable as I've already had my fingers burnt once!
My Experian account flags up two other warnings too, one being that I'm not on the electoral register. This should change shortly as I filled in the form when I moved house over a month or so ago. The other states that I have a 'high level of debt'. I have a loan which I owe about £1k to and a credit card which I owe about £300. My file states that I always pay the loan on time and I pay the credit card on time and in full.
To me this all seems in order; but when I try to apply for the PCP again, would it be worth doing so after I've paid off my credit card this month? I just want to avoid being declined for something that's avoidable as I've already had my fingers burnt once!
The credit reference agencies are very variable. Which agency did your reference come from?
You MUST be on the register at correct addresses for at least 6 years. If you are not it will take time to improve your rating. Agencies dislike gaps distrust lack of confirmed addresses.
The scam merchants know just how to fill the forms in and get a high rating.
Ordinary individuals make mistakes and pay the rice. Not a good system.
You MUST be on the register at correct addresses for at least 6 years. If you are not it will take time to improve your rating. Agencies dislike gaps distrust lack of confirmed addresses.
The scam merchants know just how to fill the forms in and get a high rating.
Ordinary individuals make mistakes and pay the rice. Not a good system.
The information I was given from Banque PSA stated that Experian was the agency, hence using their service to see what they had on file for me. I don't think it was an income based refusal as they never even asked me how much I earned!
Is there a possibility that I've stuffed things up by moving house twice in the past year? The dealership weren't particularly forthcoming with regards to providing a reason for declining me due to data protection and they couldn't even give me a contact to speak to the finance company either.
Is there a possibility that I've stuffed things up by moving house twice in the past year? The dealership weren't particularly forthcoming with regards to providing a reason for declining me due to data protection and they couldn't even give me a contact to speak to the finance company either.
Steffan said:
You MUST be on the register at correct addresses for at least 6 years. If you are not it will take time to improve your rating. Agencies dislike gaps distrust lack of confirmed addresses.
That is wrong. In order to help ensure you get the best results from on credit checking and credit scoring then you should be on the electoral. However you do NOT have to be showing for 6 years. Different score cards will be calibrated in different ways. Most commonly you will find somthing along the lines of;Not on ER - deduct x points
Currently on ER 1-2 years - add y points
Currently on ER 3 years + - add z points
The more general history you have the easier it is to predict how you will behave. When filling in a credit app you are generally asked for 3 years address history to make sure you are not trying to hide adverse credit at a previous address, although the bureaux's can pick up undisclosed address links.
The councils also supply a monthly rolling register so if you have just moved you can be added to this to help show residency status, rather than having to wait until the following october for the yearly council.
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