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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To ask if anyone got car finance with really bad credit

18 replies

BueenQee · 20/10/2021 21:05

My credit score is 449 so VERY bad. Is it worth applying for finance or would it be a waste of time? Has anyone managed to get finance with a score so low?

OP posts:
lastqueenofscotland · 20/10/2021 21:14

I know people who have but at awful rates

BueenQee · 20/10/2021 21:19

Thanks @lastqueenofscotland

I’m not looking for anything fancy, something small @ around £150-£200 a month. I work full time, am a home owner and have a disposable income (after all bills/shopping/etc) of around £1200 a month but my credit is so bad I’m scared to apply for anything in case it makes it worse

OP posts:
Cloverforever · 20/10/2021 21:22

Why can't you wait for a month or two and use what you have saved from your disposable income?

Bontanics · 20/10/2021 21:24

Credit scores don't mean anything. Credit history is what they can see.

SalsaLove · 20/10/2021 21:25

I had this many years ago and just bought a little run around with cash, around £2,000. Not a glamorous car but it did the job for several years while I sorted out my credit.

PackedintheUK · 20/10/2021 21:25

Mine was declined when the only thing registered against me was £5 for an old mobile phone contract (which they eventually agreed was an error).

Frazzledd · 20/10/2021 21:26

Sorry to ask if its too intrusive, but why is your credit score so low with that much disposable income? Also why do you need finance?

HunterHearstHelmsley · 20/10/2021 21:26

I got a 3 year old 1.2 litre for £115 a month (including warranty). My credit was appalling. I used buyacar.

BarbaraofSeville · 20/10/2021 21:41

If you get a car on credit the interest rate will be horrendous so you'll pay well over the odds.

Can you save for a few weeks and buy a cheap car and see how far it lasts?

With such a high disposable income, combined with some frugal living, you have the opportunity to put a big chunk of savings aside so you don't actually need credit so your credit history doesn't matter and you can just fund big purchases out of income.

But its always worth sorting your credit history out and keep it good by using a credit card to pay for some of your normal spends like your grocery bill and pay it off in full every month so you have a good credit rating if needed, eg remortgage.

BueenQee · 20/10/2021 21:55

Sorry typo!! £200 disposable income a month!! £1200 - I wish

OP posts:
chuffer15 · 20/10/2021 22:10

I did it... I had no other choice at the time, I bought a car for £4500 and have to pay £150 a month for 5 years so paying double back. Not worth it to be honest unless there's no other way.

SweetBabyCheeses99 · 20/10/2021 22:12

Eek. That’s going to be all of your disposable income on repayments alone! Then isn’t there a deposit to pay too or are you just going to hire? Then you have insurance, tax, servicing, mot, repairs etc. Sorry but I don’t think you can afford it, and living beyond your means has gotten you into this pickle of poor credit in the first place. Can you make do with public transport and cycling?

Overthebow · 20/10/2021 22:19

Of you only have £200 disposable income a month then £150-200 per month on a car is a lot. Will you be able to plan for emergencies?

BueenQee · 20/10/2021 22:33

The disposable income is after I buy/pay literally everything though. It includes money on clothing/socialising/the odd takeaway and a small amount I save each month so I could cut back a bit and save maybe £40-£50 a month there. Transport of around £80-£100 a month is included in my outgoings so that would obviously go towards the car payment. So I’d need to use £50-£100 from the disposable income towards the expense of a car. It’s definitely doable for me finance wise but I just don’t know if I’ll get approved with that crappy score

OP posts:
FawnFrenchieMum · 20/10/2021 22:35

We used 24/7 car finance. It’s a broker but secured deals with a few company’s. Rates weren’t great but if needs must and all that.

FinallyFluid · 20/10/2021 22:40

What happens if your boiler goes, or you need a new washing machine or similar ?

BarbaraofSeville · 21/10/2021 06:11

You keep mentioning your credit score, but what has gone wrong for you finance wise in the past few years? Credit scores don't mean anything to lenders, they're just random numbers sold to people who don't understand how the system works.

Lenders look at your credit file and previous history of repaying debt. Have you missed payments on credit cards or loans, or have CCJs? Do you use an overdraft, which is seen as bad by lenders?

You have a good income and while not as much spare money as you initially suggested, you seem to have a reasonable handle on your finances.

However, do you have any savings? If you do have £200 spare a month, you should have, because savings would build up over time. Plus if you don't have any savings, you would question whether you can afford to repay a loan and run a car, because maybe you don't have as much spare money as you think?

Do you need a car now? If you have a good relationship with your own bank, they may offer a reasonably priced loan, which could work out cheaper than finance, which is often expensive whether you have a good or bad credit history.

LadyTiredWinterBottom2 · 21/10/2021 06:18

If you have not been paying back debt or missing payments then you will have a poor chance. The economy isn't in a good place.

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