18 Year Old Loan Application

46robbie46

Hi everyone,

I Am 18 in a couple of months time, i am currently employed full time as an apprentice for a reputable company and i have been employed by this company since i was 16. I curently earn £14000 a year and my employment is guaranteed for another 2 years. I am renting property with a friend, not living with my parents.

I have been reading up on loans because i plan to buy a new motorbike when i am 18. The amount i would like to borrow is £2500, to pay off over 2 years. I have had a look on some price comparison websites and the typical APR's have been about 13.7%, but i have been told that because of my age i should expect to pay a much higher interest rate than this.

Can anybody tell me what sort of APR i should expect if i were to apply for a loan, and which companies offer the best APR for someone of my age?

Am i right that typical APR is not what i may be offered, and that if i am refused a loan on the basis of my age, it will show on my credit report and go against my name?

Thank you in advance,

Rob

rictus123

Hey im 18 already and even though i was wanting to get a loan and a motorbike aswel im going to save for it instead of getting a loan for it. I think your bank would be the best place to apply. You will need the last 3 months payslips as proof of income and address. I think you will get a loan at 16.9% no problems with a simular income to me and your not borrowing much really. If you are de clined online, go into the bank and apply and make them aware as an apprentice your pay goes up every year. Does it not go up this year or is £14000 your new salary?

Even if you are declined it wont go against your name, it will show on your credit report as you applied for credit and thats it. Be careful though, applying for more than 1 loan inside a few months means you will more likely be rejected.

I hope this helps.

46robbie46

rictus123 wrote: »

Hey im 18 already and even though i was wanting to get a loan and a motorbike aswel im going to save for it instead of getting a loan for it. I think your bank would be the best place to apply. You will need the last 3 months payslips as proof of income and address. I think you will get a loan at 16.9% no problems with a simular income to me and your not borrowing much really. If you are de clined online, go into the bank and apply and make them aware as an apprentice your pay goes up every year. Does it not go up this year or is £14000 your new salary?

Even if you are declined it wont go against your name, it will show on your credit report as you applied for credit and thats it. Be careful though, applying for more than 1 loan inside a few months means you will more likely be rejected.

I hope this helps.

Thanks for the quick reply,

I already have a bike and a license, but i do a lot of long motorway trips commuting between my parents house and where i work during the week, my bike isnt really suitable for it so i would rather get a newer one and saving isn't really an option.

Haha yes you're right, my pay does go up each year and my new salary will be £14000. My parents told me that it would be best to go into the bank and apply aswell but i thought i would get a second opinion.

Thanks for your help!

jonesMUFCforever

Where do you work that guarantees you job is safe for the next 2 years?

rictus123

Jones, apprentices cant be paid off unless the firm goes bust or they do something majorly wrong. If they are getting sacked their employer has to find them a job elsewhere.

KonkyWonky

rictus123 wrote: »

Jones, apprentices cant be paid off unless the firm goes bust or they do something majorly wrong. If they are getting sacked their employer has to find them a job elsewhere.

Apprentices CAN be paid off, although it is unlikely to happen unless they are under restoring efficiency or disciplinary action.

It is pretty standard practice for an apprentice to sign a contract at the start of his training period, the contract will state the length of apprenticeship and the company are duty bounce to see that period out, unless like any other employee they warned of there conduct and then fail to improve on it.

Kavanne

An 18 year old on a motorbike - you can expect VERY expensive insurance unless you are only planning to get a 125cc......

46robbie46

Unless i am sacked, which is unlikely, i am contracted to work for the company for the next two years. If they have to make me redundant, by law they will have to put me into work with another comany that will allow me to continue my training.

I am 17 and i already ride a motorbike, the insurance isn't too bad atall.

Please could i have answers to my questions in the future rather than unnecessary comments?

Thanks.

Lokolo

Simple. You won't get a loan and if you do the rate on it will so extortinate it would be stupid to get it.

Kavanne

46robbie46 wrote: »

Unless i am sacked, which is unlikely, i am contracted to work for the company for the next two years. If they have to make me redundant, by law they will have to put me into work with another comany that will allow me to continue my training.

I am 17 and i already ride a motorbike, the insurance isn't too bad atall.

Please could i have answers to my questions in the future rather than unnecessary comments?

Thanks.

Have you got yourself some quotes for the new bike you want to get?

~Brock~

The only credit you stand a reasonable chance of getting IMO would be HP on the bike, assuming that is available, directly from the selling dealer. Because the loan will be secured on the bike there is an element of security for the lender. The bigger the deposit you put down the better as well.

Even then your young age and renting status is still likely to go against you, and you may be asked for a parental guarantor. Make sure you are on the electoral roll before you even think about applying.

If you had asked this question a few years ago there would have been a queue of lenders at your door offering their services, but times have changed since then and it is likely that you may fall outside most lenders 'updated' criteria.