PCP and credit file

[Moonchildx]

I was wondering is anybody could help me 😊

We have a growing family and in need of a new car, we are looking to do a PCP contract.

However, our plan is to move house in 2 years time…. Does anybody know what will be on my credit file the whole amount of the car or just the finance we owe?

For example;
Car is worth - £15,650
We have signed a contract for 48 monthly payments of £172.13 and a optional balloon payment in the end.

Will the loan on my credit show the £15,650 or £8,256 (the 48 monthly payments).

I’m really clueless with this stuff and if it was the whole car amount I’d be concerned for our mortgage borrowing.

Thanks so much! Any advice is greatly appreciated x

It won't show the value of the car it will show the amount of debt you sign up for. The value of the car is largely irrelevant here. Credit reference agencies only know how much you owe.

I’m pretty sure on our mortgage application we only declared the monthly payment amount not the total loan amount

Also I wouldn't take on car finance if you are wanting to get a mortgage/remortgage in a couple of years. Can you not pick up a cheaper seismic hand car?

OP is asking about her credit file, which will inform potential lenders of her total debt.

I have PCP and can confirm that it shows the total amount of credit supplied which is the monthly payments and the balloon payment together.

Thanks @Cornishseawaves & @fluffycereal !

I currently have a car on finance but I own it in the end so I know the amount on my credit file is completely right, as I don’t owe anything at the end, if that makes sense! I’m nearly at the end of this contract you see….

It might be the case of just cramming into this car, maybe I’ll just opt for the smaller pram haha 😊and wait until we remortgage in a few years time!

@newnameswhothis thank you! Okay so the total will be shown there? I wasn’t sure because the balloon payment was optional x

Yes I aware of this - I did read the op!

but she stated about mortgage and borrowing, and it’s less about the amount on her credit file and more about the monthly payment when it comes to affordability

@Moonchildx we had a PCP car and when I applied for the bank to add an overdraft to my account I was initially declined, but once I rang them and explained it was fine. I don't know how it shows on your file but they assumed I had a loan for the full amount the car was worth at the time.

@Someaddedsugar thank you!

I may give our mortgage adviser a call and ask if when remortgaging she can explain that it isn’t the whole car amount….. hmm we’ll see!!

Yes as your finances for the balloon payment too - if you have a close look at the credit agreement it will say 48 x payments of (monthly) and 1 final payment of (balloon).

The whole amount, including the balloon payment will show on your credit file.
However the mortgage company will be more interested in the monthly payment than total amount as that affects affordability.
The credit file/score is for checking that you haven't defaulted on payments, so even with a hefty PCP you can have an excellent credit score.

OP was specifically asking what they would see.

🙄🙄🙄

Not sure why you are rolling your eyes at me? You are the one that ignored the question and gave Op information about something they did not ask.

The total amount will show on your credit file but its the monthly payment that is taken into account for affordability
I work in mortgages and quite often people fail credit scoring as their debt to income is very high as they have one (or 2 if a joint application) very large PCPs on their credit file with the balloon amounts included
We do tend to approve these sorts of cases though as it's linked to a vehicle and we appreciate that there is a balloon payment attached too