Loan help!!!!

Tixy

JazzJPH wrote: »

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

Not anymore - used to be a little bit like that but now all credit is only on your own credit report and that of anyone you have a joint financial product with (eg a joint loan or mortgage usually).

If you are going to apply elsewhere, make sure you are on the electoral roll first. And if you get turned down don't keep applying to different providers, that in itself messes with your rating.

You might also want to consider getting your credit reports from experian and equifax before you apply (£2 each by post or free trials online if you remember to cancel). If your mobile contract only appears on one (which it might well) and providing it doesn't show any late payments or other issues you might want to look for a loan with a company that uses that credit reference agency.

However al that said I'd still go for a cheaper older car, not only because it will cost loads less (in price and interest) and you are more likely to actually get a loan but also because comprehensive insurance on a £5.5k car for a 19yo lad will be horrendous (have you actually got a quote for insurance before you even think of buying this car?)

elfen

A cheaper older car would hopefully be cheaper for insurance, and by going for a 2k loan you are more likely to be accepted. These days, credit is based solely on the person, and everyone has an available amount of credit, so your parents may have hit that barrier/

jonathanadeb

It is worth considering finance at the garage. As HP is usually secured on the car it is much easier to get, obviously you are restricted to the cost of the car, and wont be able to get cash back for insurance.

JazzJPH

Tixy wrote: »

Not anymore - used to be a little bit like that but now all credit is only on your own credit report and that of anyone you have a joint financial product with (eg a joint loan or mortgage usually).

If you are going to apply elsewhere, make sure you are on the electoral roll first. And if you get turned down don't keep applying to different providers, that in itself messes with your rating.

You might also want to consider getting your credit reports from experian and equifax before you apply (£2 each by post or free trials online if you remember to cancel). If your mobile contract only appears on one (which it might well) and providing it doesn't show any late payments or other issues you might want to look for a loan with a company that uses that credit reference agency.

However al that said I'd still go for a cheaper older car, not only because it will cost loads less (in price and interest) and you are more likely to actually get a loan but also because comprehensive insurance on a £5.5k car for a 19yo lad will be horrendous (have you actually got a quote for insurance before you even think of buying this car?)

Yeah I've checked insurance, it's only £100 extra. With this car it still has a couple years warranty on it. It's something I really want. I don't like spending £2k on a car because I want one to keep for a few years, I don't want to keep having to replace banger with banger. It's something a relative of mine did, and it looked quite boring to be honest :rotfl:

JazzJPH

Just another Q, are there any 19 year old members around? Ones that have managed to get s loan?

secretservice

I took out my first car loan at 18 through my bank (HSBC), took £4k over 2 years and it's all paid off now. Think the APR was 14.9%, i would agree that the best bet being young and all is your own bank.

The post office have a very good APR rate so you could try them, you don't want to run the risk of getting knock back after knock back because it will hinder your chances of getting any credit.

Nellie_Anderson

I agree post office hasve a very good APR rate .

ManicMum

My advice? Get a bus pass! At 19, you don't want to saddle yourself with loans. Go see the world or save up for a deposit to buy your first home. These days, you need to save for a long time to get on the ladder. Cars are a total waste of money and I have one. They are a transient asset. Bricks and mortar, lad, bricks and mortar!

jonnyd281

Hate to say this but I have a '99 Mk2 Mondeo that cost £1K. Its been quite happily going up and down the Motorway every weekend for the last three years with proper servicing. I have put nearly 70K miles on the clock in that time - cheap does not mean banger.