My boyfriend is trying to get a car on finance. He's current car is on finance also but his mum put it in her name for him to get it. He has not faulted on one payment with his current car, has a credit card but always pays the amount off on time, sometimes paying the outstanding balance in one go, and has not got any problems with his bank so what's causing the bad credit???
I have an idea it's because he's not a homeowner but when i think about it what does that matter???
Can anyone explain to me what causes bad credit?!!??!
Many thanks in advance :)
2006-12-19 00:36:19 · 12 answers · asked by louise198504@btinternet.com 2 in Business & Finance ➔ Credit
Thanks for all the answers, in the end he checked his credit online and it turned out it was excellent so he's now spoke to the finance company and has been approved! Thanks again, wouldn't have looked so deep into it without the answers :D
2006-12-20 08:04:45 · update #1
Maybe its best he got a credit report. This will tell him if he has any bad credit and what it was for. It will also tell him of any CCJ's or defaults he may have. Not being a homeowner shouldn't stop him getting credit, it never hindered my husband.
Check here for more details and at the moment they are doing a free 30 day trial. I think when I last used it 3 years ago it cost about five pounds to get a report and its well worth doing.
2006-12-19 00:43:02 · answer #1 · answered by sugarplum9903 4 · 0⤊ 0⤋
He may not necessarily have "bad" credit, but just not old enough yet to have a credit history, but from what you say he would have SOME credit history, and it sounds positive. You say he is trying to get a car. You don't say he has been refused, but I take it that is what you mean. Only thing I can think it might be is that he is still making payments on one, and they probably know that the car is covered by another person (his mother), plus he probably had to declare his source of income, and how much - and, perhaps too, his young age. They assign you a credit rating number based on this kind of factors, and if he has been turned down it could be the reason - not only for the seller's protection, but also to help protect the person applying for credit, from getting into a bind
The best way to find out for sure would be to get his credit history. There are plenty of services on line for that - and, of course, ask directly the people from whom he wishes to buy this other vehicle. I'm not an authority on this, but these are my thoughts. Hope they might help.
2006-12-19 00:52:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Tell him to take out a personal loan from any high street bank it is far cheaper.
Bad credit is caused by any number of things, Not being enough in debt, previous occupiers of the house you live in or believe it or not, PAYING ON TIME. You can also find out from the lenders why he failed credit but I think you have to pay a small fee around about £10
2006-12-19 00:45:59 · answer #3 · answered by Anonymous · 0⤊ 0⤋
businesses charge finance costs, (pastime) on what you purchase, that would not furnish you with undesirable credit report. late costs do. in the experience that they don't have your fee of their hands and revealed for your account precisely with the help of OR beforehand THE DAY that is DUE. that is seen late. late funds create late costs and detrimental credit. you need to pay any and each and each settlement precisely as agreed to save A-a million credit. even if you owe you need to pay each month until eventually that's paid off. that's what elements an excellent credit status. And an excellent credit status is had to get the large issues in life like a house. continually study the important points in any settlement and be guaranteed that's not likely to be on your want. No pastime does not recommend no pastime. It ability pastime will initiate after a particular time body in case you haven't paid it off with the help of then.
2016-11-30 23:07:08 · answer #4 · answered by ? 4 · 0⤊ 0⤋
Contact Experian and get a copy of your Credit Report. Some institutions do not update your credit report which they are supposed to. Could be that there is an amount of money showing as owing and isn't. Worth checking. I did that last week and found that Lloyds Gold Card hadn't credtied £10,000 to my card which I paid in August!!!
2006-12-19 00:40:20 · answer #5 · answered by Charlene 6 · 0⤊ 0⤋
No assets, missed payments or late payments, not a high enough earner, not on the electoral roll, not being in the his house long enough or even his job long enough, try the bad credit companies like welcome finance they'll sort him out as i've got awful credit and they threw money at me for a car.
2006-12-20 06:46:26 · answer #6 · answered by j g a 1 · 0⤊ 0⤋
Not paying your bills on time, or not paying the minimum payment.
You can also be affected if you do not have any credit. If the creidt e has is in someone else's name, then it is not working for him. The best place to get your first credit from is your bank, as they already know you.
2006-12-19 00:39:17 · answer #7 · answered by Anonymous · 0⤊ 0⤋
late payments and missed payments on any loan,credit agreement, contract mobile phones, not being on the electerol roll,not having enough credit, so many blimmin' things! get him to get a credit report from experian that should explain more.
2006-12-19 00:39:17 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Missed payments on loans, payment arrears are the most common I would think.
2006-12-19 00:39:13 · answer #9 · answered by legend 3 · 0⤊ 0⤋
he can view his credit history, see where the problem lies. it could be a debt belonging to the address itself. check it out. you can clear your name.
2006-12-19 00:42:32 · answer #10 · answered by moobster65 2 · 0⤊ 0⤋