First ever loan

custard266

My son is looking for a loan of £5000 over 5 years to purchase a car. Never had anything on credit before, aged 19 years. Where's the bet place to apply to? Don't want to get lots of refusals because he's a new borrower in case this affects his credit rating. Thanks.

paulmcerlean

it will be extremely hard for him to get an unsecured loan at his age with no previous credit - he could try his bank first, if they say no, its very unlikely he will succeed outside of this with nothing to prove he is a reliable payer.

he could try getting his car on HP through the dealer as the loan would then be secured on the car should he defualt - car finance that is secured on the car is easier to get though having zero credit history may still prove a problem.

so long as he is on the voters roll and in full time employment they may ask for a guarantee such as you to co sign the agreement in light of any default from him.

it would be the best avenue to approach to save lots of searches on his credit file - if that is a no, an unsecured loan is defiantly going to be a no.

Joe_Bloggs

A loan requires a lot of financial discipline. You can simulate the burden of a loan by saving the equivalent monthly payment in a savings account. If you can keep this up for month after month, year after year then you are ready to take on a loan.
The cost of insurance may be as much as the car, certainly over the term of the loan if not less. Fronting the car insurance on the parents policy will invalidate any claims and could be treated as fraud.
These are just my personal views and they are not a criticism of anyone.
J_B.

CLAPTON

without knowing the full facts, it seems a rather questionable decision to borrrow over 5 years at 19 years of age. Masses of things can happen in that time when he may very much regret being burdened with this debt for so long

assuming he has an income (you haven't said) it would be better to save up for a modest run about 1-2k and think save first then spend.