PCP Finance Application

[lloydie1994]

Got a quick one, currently looking at changing my credit card as the one im on now is Ludicrous APR. Ordered my car back in November and the salesman did a finance app to see if i would be approved and was, will they need to do another one or will it still be approved from then. Dont want too screw my chances of getting finance up by doing a balance transfer on to a new card.

Cheers

 

[Daveotto]

If you are thinking of putting a significant amount of the final cost on to your CC would check with your dealer to make sure they do not have a limit they will accept on CC as final payment.

My dealer limited amount I could put on CC to around 10%, if I remember correctly.

 

[lloydie1994]

Sorry seems i have confused the situation, the CC has nothing to do with the car, the car is being bought on the PCP and will be done with finance agreement, but i currently have a card but have just opened a new lower rate card and will transfer the balance of my old one to the new one. But wasnt sure if audi would do another credit check for finance before i sign the agreement. Just a bit worried that with a new credit card it will deny me the finance for the car.

 

[AlB82]

I don't think Audi are that concerned about your credit rating. If you default they just take the car back. I wouldn't be worried.

Finance companies are more concerned with unsecured lending.

 

[TTLAW]

Sign up for credit experts free month and have a look at your credit score. The Audi search for finance knocked my score down by 20 so no concern but a CC application might be more. I dont think they do a new search as it would be detrimental to your score. Each search has an impact on your score and the more searches in a short period of time lowers it substantially. To be honest I would wait until you have signed your agreement and picked the car up just in case.

Steve

 

[TTLAW]

Hi,

I would sign up for the free month with credit expert to see what your score is before doing this.

Each search will have an impact and multiple searches in a short period of time will have a big impact and lenders will see you as a bigger risk.

I dont think Audi will search again as it impacts your score but I think I would wait until the car is delivered before applying for a CC just in case.

I checked my score before and after the PCP application and it lowered the score by 20. I would expect a CC application to be a bigger drop.

Steve

 

[Croftj]

Pretty sure as the credit is secured against the car you dont need to have a great credit rating to get approved.
Plus its in the dealers interest to flog you the car so very very very doubtful you'll get declined.

If you're concerned i would suggest calling the dealership, ask to speak to the finance-man and ask them if you applying for a credit card will in any way impact on their decision to lend you the money to finance the car.