Getting any credit

Tommyaweek · 21 May 2017 at 9:52AM

I am looking to get a motorcycle and gear as will save me money every month compared to travelcard but due to dro I wont be able to get finance, does anyone know anywhere that will give finance with bad credit history and not charge 1000%
The only thing I can think of is doing a justgiving site lol

mwarby · 21 May 2017 at 3:06PM

I assume you've factored in all the costs such as, fuel, road tax, insurance, mot, repairs ?

With a current DRO I'd say you have little chance (as to get it you have to show less than £50 a month spare). You might find you can get a bad credit credit card (about 50% APR), but the limit would probably be too low. I expect you'd find similar problems with a payday loan, with the addition of much higher rates

National_Debtline · 22 May 2017 at 11:21AM

Hi Tommyaweek and welcome to MSE,

If your DRO has not yet completed you need to be very careful. There are a lot of practical issues in trying to get credit whilst you are in a DRO, such as, if the credit is for more than £500 you must declare your DRO, the monthly payments cannot be for more than £50per month and it can't take your debt level over £20k. If you somehow manage to get credit within these guidelines you must then not purchase an item worth more than £1000 due to the asset criteria.

However, if you mean the DRO has finished but still showing on your credit file, you won't have to worry about the issues above but the DRO will have cause a lot of damage to your file which will make new credit harder to obtain. The recommendation would be to save for the item you would like and purchase it outright rather than take on any more credit. I would also echo mwarby points about the overall running costs of any vehicle, plus the safety equipment/ clothing that you need to buy, versus the public transport expenses. Good luck,

Laura
@natdebtline

Tommyaweek · 22 May 2017 at 1:27PM

I was looking at getting a cheap bike and compared to travelcard I would save about £10 a month after all cost over the year, it looks like I will have to wait till it finish as I cant save that much anyways
thank you for your help

Johnsmith2016 · 22 May 2017 at 9:42PM

If your still in the DRO I wouldn't bother for the sake of saving a tenner a month.

If when your DRO is done feel free to do what you want, your will prob be limited to either a vanquis or capital one card then after 18 months aqua will lend. But the point of these is to rebuild your credit and pay off each month, not incur debt again at silly interest rates.

Getting any credit

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