Oh no... credit rating dropped from 998 to 600 - I need help

[Larafromthe80s]

I've always had a perfect credit score. Always paid off any credit cards within time.
Am a married homeowner with a mortgage.
Dh earns around 45k a year, i am part time on 31k
We bought a new car in December and we owe around 27k on it, we're paying £340 a month and our car prior was £260 so not much more.
However I've tried to take out a credit card today for a holiday (0% for 24m) and have been refused.
Baffled, I've logged into my full experian score and my credit rating has dropped to the bottom end of 'poor' because my debt ratio is seen as very week.
Help 😟 please
Is there anything I can do?
I only have the car and the mortgage (joint mortgage).
Everything else on my report is fine but basically it says that I owe as much as I earn so can no longer apply for credit.
The money for the car is taken from a joint account, me and dh both pay into.
No affordability issues.
I'm so stressed, I feel like I've just screwed up everything.
How do I fix this?
Can I transfer the car to DH name? Its in my name as I drive it the most but we both pay for it.
😔😪

Is the car financed in your name or joint names??

It has just dipped because of the new credit agreement in December, leave it for 12 weeks it should go back up.

What are you other outgoings like ? Do you have a big mortgage?

A big part of credit affordability is all about your outgoings as a percentage of your income.

Just me. I didnt realise joint was an option? He just said who's name shall I out on the paperwork and I said me because I'm the one who drives it the most

We owe £205k on mortgage
Basically our take home per month is on average £4500 ish after pension contributions etc.
All direct debits come to £1874
We put 1k a month in savings (but often take up to half back out depending on birthdays etc

Well the report isn't wrong, the car is almost as much as your salary. Maybe put off going on holiday for a while and save up first?

You need to appeal to Experian there is something missing from your profile. The extra cost of the car should not cause a large drop or is there another expense that has changed.

It may, ironically, be that you don't have enough credit! Or that your credit isn't spread enough.

I'm not sure about Experian but I have a Noddle account which gives me tips on how to improve my score. This account is free too so may be helpful?

I've accessed my full report and it's stating on there that its my debt to income ratio thats given me a bad score... just don't know how to fix it

Well you apply for a credit card that's not 0% or you pay off the car (clearly not an option if you didn't buy it outright).

Or find a company that sell holidays with 0% payment plans.

Or cant he just get the 0% credit card?

The thing is @Larafromthe80s your debt to income ratio is huge even though the payment plan is affordable to you at the moment - because your outgoings are based on the joint income, but the debt is on just you.

Agree that your husband should get the credit card. Any reason why not? You’re shouldering a lot of personal debt for the lower earner.

Only fix is to increase your income or reduce the debt. I know all your costs are split between the two of you but your actual legal liability on paper is you specific. You cannot get more credit as your (you as an individual)income is all accounted for.

If you can save a grand a month, just pay for your holiday monthly through the travel agents. Once you owe less on the car you’re score will
Improve, unless it’s a lease

Poor rich people 🙄

@MonicaGellerBing how on earth is that helpful? Go be bitter somewhere else

Our income is about 5k less than yours and that feels like quite a lot of debt to me. Mind you, I have never really had credit cards so maybe I am naive. I would never buy a holiday on credit.

@MonicaGellerBing

Poor rich people 🙄

Honestly, what is the point of this. OP earns almost exactly the Uk average wage, hardly a multimillionaire. Is she not allowed to worry about finances, or practice sound financial management, or ask questions.

Even if OP WERE rich, using the money matters thread to ask money questions is ok.

It's not a race to the bottom. And everyone should be able to ask financial questions and improve their finances.

Get a grip.

I have a 997 score on Experian but Virgin refused me a credit card. But I got one from Capitol One. Shop around.

I don’t think your debt ratio is bad, £27k for a car is not unreasonable and you’re only committed to £340/mth for 36 months or whatever on PCP then hand it back if you want. You’re only committed to £4000 a year, well within your income.

Try another card company, although you really shouldn’t be borrowing at CC rates regularly, very expensive credit.

Your credit number is pointless as different lenders have different criteria.

You have 232k of debt on 76k income.

@Crazykatie

I don’t think your debt ratio is bad, £27k for a car is not unreasonable and you’re only committed to £340/mth for 36 months or whatever on PCP then hand it back if you want. You’re only committed to £4000 a year, well within your income.

Try another card company, although you really shouldn’t be borrowing at CC rates regularly, very expensive credit.

I disagree, £27k is a ridiculous amount to pay for a car when you have to borrow to buy it, and likely to be the issue.

Your DH could try for the 0% card for the holiday, but from the bank's point of view, your at risk of overstretching yourself, borrowing to pay for expensive lifestyle purchases, which is probably why they refused the credit card.

I cannot get my head around you buying a £27k on credit?
Does a car need to be that expensive?!
Madness.

Also when you apply for credit your credit score dips from 3-6 months so that will be having an impact.

Gosh, that seems like an awful amount of debt to take on for a car. I would focus on getting rid of that as soon as possible.

The car isnt anything posh, it's nice dont get me wrong but you dont really seek to get cheap cars these days, even used.