Loan help...

Lauting

Hi all,

I'm after a loan to purchase a car (£10,000).

I've been looking around and there are all these good rate APR at about 6%, which i would be happy with.

What do you reckon my chances are of getting a loan at 6% over two years....I earn £21,000 a yr and living at home with parents. I've also had a credit card for 3 yrs and used it frequently and i think i have a good history as i've paid all bills etc on time.

Also a big concern for me is being turned down for one as it affects your credit history. I've just recently changed banks, will that affect the outcome? I still have the old bank account active tho.

Thanks in advance for your advice.

Jessiepig

If you earn £21,000 and have no debts. I cannot see any reason why you could not get a loan. Why not ask your own bank first.

grumbler

£10K 6.5% loan over 3 years will cost you more than £1K in interest. You live with parents and can easily save for something cheaper (you can buy very good car for £4K-5K). The saved money will help you to pay a deposit for your own dwelling that you will need sooner or later (rather sooner than later). With higher deposit you will need smaller mortgage and will be able to get a better deal.

Debt_Free_Chick

Lauting wrote:

Also a big concern for me is being turned down for one as it affects your credit history.

Does it? Why do you think so?

Lauting

Debt_Free_Chick wrote:

Does it? Why do you think so?

I thought if you got turned down for a loan it will show up on your credit history and will lower your credit rating and make it harder when applying to a different company for a loan?

Debt_Free_Chick

Lauting wrote:

I thought if you got turned down for a loan it will show up on your credit history and will lower your credit rating and make it harder when applying to a different company for a loan?

Your credit report doesn't show whether you were accepted or turned down for a loan. It simply shows that a search was made. A number of searches over a short period of time tends to make some lenders a little nervous - as they think that you are "desperate" for a loan and therefore have money troubles.

But we talking 3, 4 or more within a month. Two searches within a month shouldn't be a problem, as it just indicates that you're likely to be shopping around.

But just to confirm ... no, your credit record is not marked to show that you were turned down for a loan. :j

HTH

Lauting

Debt_Free_Chick wrote:

Your credit report doesn't show whether you were accepted or turned down for a loan. It simply shows that a search was made. A number of searches over a short period of time tends to make some lenders a little nervous - as they think that you are "desperate" for a loan and therefore have money troubles.

But we talking 3, 4 or more within a month. Two searches within a month shouldn't be a problem, as it just indicates that you're likely to be shopping around.

But just to confirm ... no, your credit record is not marked to show that you were turned down for a loan. :j

HTH

Thanks for the info.