Loan help!!!!

JazzJPH

Right,

I'm 19... And this is proving not good so far..

I really need a new car, as my old banger is dying quick. I recently went to get a brand new car (on this glorified scrappage scheme) but chickened out last minute because it was 5 years of paying £250 a month, and I'm not into that!!

So, I thought I'd go for a loan, I've seen the car I want, it's around £5,500, and I have calculated the loan amount I need, which is £6000 (Insurance etc.)

But it seems since I don't have a credit card, and I have never had a loan before, that It's not likely of me to get a loan unless I am willing to pay stupid% APR!

So guys, does anybody know where a young lad can get a loan for £6000 with a decent % APR, i'm looking to pay over 3 years. If that helps.

I'm on a decent enough wage which goes up significantly every year. And my parents have the best credit rating, but can't get anymore loans (they explained it to me, but I got confused..)

Looking forward to your help!!

Jazz

JazzJPH

So basically, I need £6000 loan, but me being 19 with pretty much no credit score is a hinderance. Anybody know the lowest going rate?

poppy_f1

try who you bank with, they may have you pre approved depending on how you conduct the account with them

JazzJPH

Thanks guys. I'm with Alliance & Leicester so I'm going to pop into the Newcastle branch tomorrow and have a chat.

As for fixing the car, I really cant. It's done 175,000 miles and is falling apart. I want to get a new one

x

Maximillion

you can build up a credit history with an extremely high %apr card but just keep it paid off consistently or even a pre-paid debit card, not a quick fix but might help in the long run

http://www.moneysavingexpert.com/cards/bad-credit-credit-cards#rebuild

JazzJPH

Cheers. I'm not sure if I could afford that like, the idea of spiralling into debt scares me a bit

dougyd

You want a 6k loan where you will probably pay around 15% APR, but you won't take out a credit card where you limit will be £250 - £500 with a 40% APR......

As First Crow says if you pay off the outstanding balance (you don't have to max it out, just spend £50 or so) then you won't pay any interest but will start showing that you can make payments on time to your account.

JazzJPH

Haha yeah im a bit of a hypocrite I suppose! I suppose I could do that credit card thing, i didnt know how it works, so thank you mate. Still need to find a decent place to get a loan like

Tixy

Your bank is likely to be the only place that will lend to you at a decent APR - if they won't nobody else is likely to.

The smaller the amount you ask to borrow the more likely they are to accept. Do you really need £6k? Surely you could get something reasonable for say £2k.
How much can you afford to repay each month?

Your parents credit score won't have any impact on your ability to get credit. Do you have any credit accounts at the moment in your name? a mobile contract or anything?

As others have said to start building a good credit history get a subprime card, make one or 2 purchases a month (perhaps petrol) and set up a direct debit to pay in full every month - then you will never pay interest and will start showing you can handle credit responsibly.

JazzJPH

cheers for the info I do appreciate it. Yeah I need to get this 6k loan. I want to pay around 250 a month. I've been paying my parents 450 a month so its easily affordable. Ive just been to my bank, they don't do loans for under 21. I am thinking about trying sainsburys, they do loans for 18yo.

Yeah I have a direct debit for my mobile at 25 a month. But I thought the credit was against the property? My dad said something about a relative that couldn't get credit cards or loans because the previous owners of his house had bad credit history

hoggums

For 6K you can get a brand new car with the scrappage discount. Your tastes are too expensive - get a 2nd hand one for 2K - you're much more likely to get a loan for that amount.