Getting ripped off with car finance to get credit score - shall I?

lolage said:
I already have a car which I've had for 4 years. Its getting to the stage where its going to start costing more to maintain than the cars worth.

How long generally will I have to have a credit card for and have a better rating than "Bad"/"Poor"?
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I would use your parents better rating to get a better deal on the car you want.

I would suggest you apply for a credit card - use it for just your car fuel and pay the balance off before any interest is accured. That way you are building up a better credit score and it's not costing you more to do it.
 
1. Get on the voter's roll
2. get a CC and pay off in full every month and never ever miss a payment
3. get a mobile or any other utility in your name and never ever miss a payment
4. don't constantly search for credit

Do that and you will be fine and build up a good file for when you actually need it (i.e. a mortgage). as above credit scores at noddle etc are not the bottom line. using your credit file to ensure you have 0 late payments, defaults etc and records are correct is more important
 
Everyone saying to get a credit card and to pay it off in full every month: My experience was that until I actually incurred debt (Did not pay it off in full, received interest) then nothing was registered. It was as as I was not using my credit card, which makes sense. You cannot get a credit rating for something that you are not actually using for credit?

Is this not so?
 
ubern00b said:
Everyone saying to get a credit card and to pay it off in full every month: My experience was that until I actually incurred debt (Did not pay it off in full, received interest) then nothing was registered. It was as as I was not using my credit card, which makes sense. You cannot get a credit rating for something that you are not actually using for credit?

Is this not so?
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No, this is not correct. You are using credit even when you pay in full as you have an outstanding balance from day of purchase until your payment due date.
 
Just checked Noddle and my score is 4/5. Says I need to pay for Noddle Improve to get my actual score.
 
Noddle says my rating is this:

Credit rating 4

A rating within this banding indicates that you can usually expect to be accepted when applying for credit, and are in a position to choose between different credit providers who view you as a low risk.
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Yet I just applied for a credit card with my bank (HSBC) and they decline me telling me I can't apply again for another 3 months...
 
lolage said:
Noddle says my rating is this:



Yet I just applied for a credit card with my bank (HSBC) and they decline me telling me I can't apply again for another 3 months...
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The number doesn't really mean anything, mine tells me I'm 3/5 yet I've got no problem getting credit at sensible rates.
 
lolage said:
Noddle says my rating is this:



Yet I just applied for a credit card with my bank (HSBC) and they decline me telling me I can't apply again for another 3 months...
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I wouldn't either if they've done a full credit check on you, ask them?

The noddle score is a good start.
now use the MSE link I linked to above, it'll do a scrape and give you a list of CC's and your expected acceptance rate.

You may very well have to settle for somethign like a vanquis card, be VERY carefull with these, astronomical APR's and charges so MAKE SURE you can pay off in full every month.

Do you not have a mobile?
Does noddle not give you any info whatsoever for financial links?

Doesn't seem the right time for loans tbh, I got mine last year at just shy of 5%, they keep offering me to extend the loan AND bring down my monthly payments! Sounds good to me!

HOLD ON!
Loan length extended AND % hike of almost 10% extra!
 
[TW]Fox;25870973 said:
This is actually completely untrue, lenders will often accept you at a different rate depending on your credit score. Why do you think APR is advertised as being 'representative'? Because different customers will be offered different rates.
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The point I was making is that we dictate the rate to the finance company where I work. A lot of other dealers will apply for finance and then see what the finance company say and then offer that. Because of our size, we dictate the rate and it's often as low as 1.9% flat. It's extremely rare that the rate ever goes up.

I agree with everything else, don't buy a 4k car from a dealer. It's just madness.
 
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I've come to the conclusion Noddle ratings mean jack. I've never missed a beat with any credit card/loan that I've had and at the moment don't have any credit as I've just cancelled my last credit card as it had a £0 balance.

A year ago my rating was 5/5. Now it is 3/5. Go figure.

The only thing that has changed is I have swapped my main bank account from Natwest over to First Direct (and subsequently closed all of my old Natwest accounts) and opened an ISA.
 
[TW]Fox;25876551 said:
Arghghgh, flat rate. Used by third world countries and... car dealers.

It's only purpose is to make the finance seem cheaper than it is. 1.9% flat sounds nice, eh?
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It's not bad, relatively though is it?
 
Ahleckz said:
The point I was making is that we dictate the rate to the finance company where I work.
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To an extent. The finance company will tell you the minimum rate before a subsidy is applied. You can offer anything you want but go under this rate and you have to pay this subsidy to the finance company.

Likewise there is a maximum rate before the commission tops out and the dealership gains no more. There is no point in going above this save to make the customer pay more.
 
lolage said:
Just checked Noddle and my score is 4/5. Says I need to pay for Noddle Improve to get my actual score.
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The score is largely irrelevant. 4/5 is a decent starting point. You should be able to look at the detail on Noddle without paying any more, and work out where there are areas that may concern lenders (missed / late payments, excessive applications / credit checks etc).
 
R.O.S.S.I said:
I've come to the conclusion Noddle ratings mean jack. I've never missed a beat with any credit card/loan that I've had and at the moment don't have any credit as I've just cancelled my last credit card as it had a £0 balance.

A year ago my rating was 5/5. Now it is 3/5. Go figure.

The only thing that has changed is I have swapped my main bank account from Natwest over to First Direct (and subsequently closed all of my old Natwest accounts) and opened an ISA.
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I agree, my score was 5/5, I then got a loan and it dropped to 3/5 even though all payments and my credit card, utility bills, overdraft, mortgage, etc are paid on time.
 
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