What does my girlfriend do?

dean_ham

Hi guys.
My girlfriend graduated last summer and has been working in a temporary position as a nurse since November 2008 (12 month post) which will be made permanent in November 2009.

She has a quite unreliable car which she needs getting rid of ASAP. A couple of weeks ago a car dealer applied for finance for her and was refused, i suggested she apply to Tesco for a personal loan of 7500 this was also refused.
Then i suggested she should apply for a personal loan with her bank (barclays) who she has been with for the past 5 years. I told her not to apply for a graduate loan (as you have to be in a permenant job) and apply for a standard barclays loan. She went to the bank and yes you guessed it she applied for a graduate loan :rolleyes: for 7500 again, which was refused.

At this point she gave up and decided to keep her car, and paid off the rest of her car loan and decided to keep her car.
But again the car has left her down and is costing her more to keep it on the road than a new(ish) car would on finance.

Does anyone have any suggestions on where she can get cheap finance as i dont want her to keep applying for loans. Ive checked on experian credit check and she has one red mark on her credit history where she took out a mobile phone contract under her name for a friend and the friend messed her around. Maybe this is the reason why she cant have a loan. But also the car loan is still on the records saying it hasnt been paid off, does it take over a month for this record to be updated.

Any suggestions how she could go about this and get finance for roughly 5000-7500.

BTW her curcumstances are:-

Salary : 21000
Overtime : 150-300 a month / 2000 - 4000 a year
Debts : 0
Outgoing costs by direct debit such as phone etc : 100 per month
Living with parents.

Thanks guys

Dean

sporedude

That mobile phone contract sounds like the reason for the loans failing, If its a default it will be there for about 6 years.

epsilondraconis

Looking at her income and her outgoings, she should be able to save a reasonable amount of money in a fairly short space of time. She should be able to save up the money fairly quickly.

dean_ham

sporedude wrote: »

That mobile phone contract sounds like the reason for the loans failing, If its a default it will be there for about 6 years.

Think it was defaulted yes.
This was 2 years ago - any suggestions how to go about this? Does this mean the chances of her not being accepted for a loan for another 4 years are very slim!

dmg24

She should lower her expectations - you can get a reliable car for considerably less than £7500!

daily_2

The car would have to be completely falling apart for a 7500 loan to be cheaper than a repair, either fix the problem, or buy another banger cash at the end of the month, or save up and be patient.

Living at parents with no debt, is a good position to be in, committing to 4 years of repayments whilst temping, turns that good position bad.

dean_ham

I can see what you are saying - i personally would do what everyone is saying.
But the way she looks at it is that shes worked hard for the position that shes in and wants to treat herself by having a nice car which she likes for 160-200 quid a month. I can see whats shes saying but on the other hand i would suggest she saves, but she wants it now... so....

Any suggestions guys?

daily_2

She keeps getting turned down, so the likelihood is that if she could find someone to finance it, they will whack a massive apr on it, so she'll have to work even harder to pay for it. This is how a lot of people get into serious money troubles that last a much longer time than the car will.

If you are really desperate, you could always try Carcraft and the like, but I wouldn't recommend it.

rsykes2000

Sadly your suggestions to keep applying have harmed her credit report further and the 3 recorded searches in the last 3 weeks will look to anyone doing a further search as if she is in financial trouble and desperate. I would suggest not to apply for any more credit for a further 6 months when the searches will be less damaging.