how can I obtain car credit with toxic credit history
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CharlesKungu
2 months ago
ExperianJames
answered 1 month ago
I suppose the answer rather depends on what you mean by ‘toxic’ and how this is viewed by any lenders you approach. If your credit report is stained by past difficulties, your credit rating will recover over time and there may be things you can do now to spruce up the picture your credit history currently paints. If, however, you’re current finances are a bit of a crash zone, new credit may not be the answer and you might be better off seeking free advice from one of the respectable debt charities. Assuming you’re in the former predicament, start by getting hold of your credit report and checking through it carefully. Make sure everything is accurate and up to date, particularly that any previous bad debts are marked as satisfied. Check that you’re on the electoral roll as this can also affect credit scoring. And consider adding a note to explain your past problems, assuming there’s a good reason. If you get a report using the free trial on the Experian website, alongside your credit report you’ll get a benchmarking credit report score and tips on increasing your score in the future. You’ll also find links to match your credit report to credit offers you’re likely to qualify for, which might be a good way to help avoid making wasted applications that could add to your problems.
James Jones, Experian
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James Jones, Experian
Expert Financial Adviser Answer
Darren Smith
answered 1 month ago
i agree with a lot of what James has said however, there is no point in paying to find out your score from credit reference bureaux.
the reason i say this is that all lenders use their own scorecard and as James states, their tool is only indicative.
i have had many clients say to me "but my score was 999, why was i declined".
if you are in the "repair" phase of your former poor credit history you will find that the top rates will not be available to you. an alternate means to find a lender would be using a new service called noddle, its linked to the callcredit bureau and rather than charging a fee for membership, once you have obtained your credit file it will give you a shortlist of providers that would be more likely to grant you a facility.
this list is compiled from your bureau data. how do noddle make money then if they dont charge you a monthly fee? simple, its like the other money sites (you know the ones, moneysavingsexpert etc and the comparison sites) they get paid per click through to the product provider - usually when a sucessful application is made.
one option that has worked in the past to repair credit is to consider applying for one of the high apr credit cards. these cards often only grant a small credit facility, £500 ish, capital one and vanquis have offered these cards.
the aim though is to only use them for small transactions, fuel or shopping etc and always so that you can repay the full amount. what this will do is start to create an account usage and repayment record and might in the future make it easier to obtain credit from a mainstream lender.
this approach isnt foolproof and it does require financial discipline and so not appropriate for everyone.
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the reason i say this is that all lenders use their own scorecard and as James states, their tool is only indicative.
i have had many clients say to me "but my score was 999, why was i declined".
if you are in the "repair" phase of your former poor credit history you will find that the top rates will not be available to you. an alternate means to find a lender would be using a new service called noddle, its linked to the callcredit bureau and rather than charging a fee for membership, once you have obtained your credit file it will give you a shortlist of providers that would be more likely to grant you a facility.
this list is compiled from your bureau data. how do noddle make money then if they dont charge you a monthly fee? simple, its like the other money sites (you know the ones, moneysavingsexpert etc and the comparison sites) they get paid per click through to the product provider - usually when a sucessful application is made.
one option that has worked in the past to repair credit is to consider applying for one of the high apr credit cards. these cards often only grant a small credit facility, £500 ish, capital one and vanquis have offered these cards.
the aim though is to only use them for small transactions, fuel or shopping etc and always so that you can repay the full amount. what this will do is start to create an account usage and repayment record and might in the future make it easier to obtain credit from a mainstream lender.
this approach isnt foolproof and it does require financial discipline and so not appropriate for everyone.