Adice Needed - Which direction to take...

BREMBO

Hello,

I was hoping for some advice on the following. Im 21 years old and looking at buying a car within the next 6 months. Unfortunetly my credit history will be avergae, never had any credit cards, Loans etc but all bills payed etc payed on time no overdraft. I will need to borrow £5/6000 and would like to pay it off within 3 years...or whenever I have money available (not sure if this is possible)

Althoug a lot of you will say just save, I have already done so with half the amount I need, so I'am looking to borrow now while im young.

What do you think my best options are ? and is it possible to build up a better claims experience within my time limit (6months) on a 'starting out' credit card or any other ideas?

All advice is appreciated, but please dont say save lol :beer:

Thanks

Beast

With limited/no credit history you're going to struggle to find mainstream lenders who will take the risk.

How much do you earn? What are your monthly outgoings in terms of other debts / bills / rent / living expenses? These are the numbers a lender is going to use to do the calculations.

Coveredinbees!!!!

Save.

Or buy a car you can afford with the money you have already saved, as you already have half which must be 5 to 6 K already. Why do you need a £10K+ car.

Tixy

Have you actually requested a copy of your credit report? Have you had any credit agreements at all?
You say all your bills are paid on time but unless these are something subject to a credit agreement they won't help your credit history at all. Do you have a contract mobile? that would probably appear on your credit file.

If you have no credit history you will find it very hard to get a loan for this amount. You could try approaching your own bank. Or you could consider getting an HP from a dealer.

But seriously -there is no way that spending over £10k on a car is a good idea (especially not a 21 - the insurance alone will cost a fortune).

bouncydog1

The other point is that your car will depreciate significantly over the time it takes you to pay back the loan. What sort of car are you hoping to buy - perhaps there might be an option of buying something a couple of years old where you will lose less in depreciation. Nothing more depressing than saving hard, taking a loan and then finding out when you have paid off the loan that your asset is worth less than the amount you saved!

Far better to be money savvy and buy something a bit older and have savings behind you for a rainy day or a holiday etc.