Completely new to Loans/Credit Cards, Whats best for me?

gigabyt3r

Hi, I'm Completely new to the world of loans and credits cards, never had either one of them before! I'm looking to purchase a car for around the £5k mark. I was wondering what would be the best (best meaning cheapest) way of me doing this?

Many thanks in advance

21 Years old in a few month if it helps :beer:

jennihen

If 'completely new' to the world of credit and loans does this mean you've not had credit before?
Its not easy to borrow at the moment anyway but without a credit history it would be even harder.
Have you looked at your credit file?

gigabyt3r

jennihen wrote: »

If 'completely new' to the world of credit and loans does this mean you've not had credit before?
Its not easy to borrow at the moment anyway but without a credit history it would be even harder.
Have you looked at your credit file?

Not had credit before, but been in full time work for 18 months and always pay all bills debits etc.

bryanbukowski

Hi gigabyt3r,

You will be able to get credit, though you will need to be flexible.

Usually a lender will check back 3 years worth of credit so if you don't have this then you will limit the options available to you. This doesn't mean that you'll need to pay a higher APR necessarily though this may be the case.

I think the online lender Smile can help people with a short credit history so may be worth checking. Otherwise you may benefit from speaking to a broker though they will ask you to pay a fee for their services (maybe find one who doesn't charge upfront?).

Hope this helps!
B

jennihen

I'd ask my bank . . .

gigabyt3r

jennihen wrote: »

I'd ask my bank . . .

May give that a try although i'm with Halifax and I heard they are a poor bank, is it still worth a try?

bryanbukowski

gigabyt3r wrote: »

May give that a try although i'm with Halifax and I heard they are a poor bank, is it still worth a try?

You really can't pick & choose which lender you'd like to go for. What would constitute Halifax being a poor bank? Afterall they could be the ones giving you the money!
Banks will definately be able to offer some of the best APRs out there. If Halifax have more than 3 years history on you then they could be the best option for you definately!


B