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.
😔😪

I am struggling to imagine spending 27k on a car. Is this a thing?

Anyway, OP, it seems pretty clear that your OH is not pulling his weight in terms of taking on debt. This holiday is on him.

As your DH earns more than you the car should have been put in his name. I lost 15 points on Noddle because my energy company went bust and I got moved to another one. It stated you have taken out a new credit agreement with Octopus energy. I am expecting it to go back up in 2 or 3 months.

27k on a car. . You owe almost your annual income on a car loan. And want to borrow even more money. Not surprised you were refused further loans. Tell your DH to apply for the card.

@Viviennemary

27k on a car. . You owe almost your annual income on a car loan. And want to borrow even more money. Not surprised you were refused further loans. Tell your DH to apply for the card.

Why are people acting like £27,000 on a car is a lot? It's really not.

Mine was 2nd hand and £8000 so don't come at me

@MonicaGellerBing

Poor rich people 🙄

FFS, really

@ProudAlly

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

Shop around by all means but SOFT SEARCHES ONLY.

Making applications and getting turned down is going to hammer your credit rating any further.

Agree that one way might be to have the finance for the car in both names, if that's possible so it's only 50% on your credit score. Also if you only bought the car in December it can take a few months for your rating to bounce back.

I'd forget about the holiday and save up for a holiday next year. Instead of taking out credit for a holiday this year then paying it back, just flip it. Get the money then have the holiday.

I would save up for the holiday or find a holiday payment plan.

Sounds like you can't afford a holiday this year as you've bought a very expensive car. Maybe focus on paying off one debt before getting into another, or you're just going to mess up your rating even more

I earn £32k and bought a £26k car on finance and my Experian score is 994.

So I'm surprised by your score and the reasons why. Could you get a credit builder credit card? I've had one for a few years, maybe that helps?

It’s not a lot @girlmom21 but it is a high ratio to OP’s salary. Plus the mortgage, plus putting a holiday on credit. It’s not that good a financial picture.

@Traumdeuter

It’s not a lot *@girlmom21* but it is a high ratio to OP’s salary. Plus the mortgage, plus putting a holiday on credit. It’s not that good a financial picture.

I agree it's not a good idea for the OP specifically but it's not an expensive car generally speaking

@SimonedeBeauvoirscat

I am struggling to imagine spending 27k on a car. Is this a thing?

Anyway, OP, it seems pretty clear that your OH is not pulling his weight in terms of taking on debt. This holiday is on him.

I think it is to be honest. I work in mortgages and I would say that a very very high percentage of people have at least one HP/lease for well over £300 a month going to cars. A lot have one each. Some people spend double this on car HP. Majority of people at work have a new car on HP or lease every 3 years and when I look at neighbours there are at least one newish car on every driveway. My one neighbour they both have a 70 plate Range Rover! Meanwhile we both have cars owned outright each worth 3k at a push. We definitely are out of place where we live and amongst the school population

That's probably only the case if you move in circles that are more affluent than the majority.

I used to have a new lease car every three years but it was a £15k Skoda and half the cost was paid for by my employer as it was needed for business use.

I've just bought a 2 YO Citigo with savings and will keep it for many years. DP has a 12 YO Volkswagen that he owns outright and has no plans to change any time soon.

Our cars seem typically middle of the road and for anyone who has a newer car, there are plenty of people who have older ones or who haven't changed their car for years.