Smaller Loan?

mjtaylor82

Hi there, just a general info/advice hunt here I guess!!

I'm liking the idea of getting myself another car and a loan to pay for this. The thinking is it makes more sense to buy something and pay it back monthly rather than save up the same money monthly, it'd obviously make the goal a lot futher away!

I'd be reluctant to borrow more than £3000, from what I've seen most lenders seem to want larger sums to be borrowed.

Anyone recommend somewhere that is good for smaller loans of say £2000-3000.

I'm 28, currently renting a flat, bringing home £1200 a month after tax/NI. Outside of rent and bills (about £400 per month) the only finance I have is £37 a month towards a TV which has another 7 months of payments. I don't have any children and am obviously in full time employment (this company for 5 years now). Ideally I'd like this to be paid off in 3 years.

I have no financial mess up's in my past and my credit score through experian as of today is 999.

Cheers!

[Deleted User]

2 ways of doing this,a loan from your bank,2nd option get a c/card with a £3000 limit(at least)with an interest free period for purchases then buy from a dealer who accepts cc,many do now,then after the interest free period has expired transfer to a new interest free cc(but will have 3% fee for balance),that way £90 a month over 3 years should do it

mjtaylor82

Thanks for the info.

I tried my bank (lloyds TSB) online, the instant answer thing came back with a no which suprised me somewhat as my credit score is very good and I've never been overdrawn in the 8 years of the account. This led me to believe that maybe they weren't interested in the smaller amounts as it'd not be as worthwhile. I will try and speak to someone face to face (or phone to phone!).

Credit card wouldn't be an option unfortunatly as I'm after buying a classic car so 99% chance it'd be from a private seller.

Thanks again

jonesMUFCforever

Check your report with the CRA's.
To get a straight decline would indicate a problem somewhere - they would not discriminate against you for only wanting a small loan.

mjtaylor82

CRA....that like experian etc...?

If so I did a credit report and score this morning which came back at 999, which I believe is as good as it gets. I've been over 900 for years now and have never missed a payment on anything.

Like I said, I'll talk to them.

jonesMUFCforever

The score is meaningless did you actually get a report?

Crap_with_money.com

Lloyds will look at their internal scoring first, so if you haven't any credit with them that may have been enough for you to be refused as obviously they won't have been able to see how you manage debt.

Are you on the electoral role also? That can have an impact on you receiving credit? Best bet is to call though and ask someone.

Other than that, you could potentially look at taking out a loan which allows you to make over payments without any charges, borrow more than you need to get the better rate, then over pay the extra that you've borrowed to bring the balance of the loan back down again?

mjtaylor82

jonesMUFCforever wrote: »

The score is meaningless did you actually get a report?

Yes, nothing but nice green blocks of goodness, no missed or late payments, no outstanding accounts etc....

mjtaylor82

Crap_with_money.com wrote: »

Lloyds will look at their internal scoring first, so if you haven't any credit with them that may have been enough for you to be refused as obviously they won't have been able to see how you manage debt.

Are you on the electoral role also? That can have an impact on you receiving credit? Best bet is to call though and ask someone.

Other than that, you could potentially look at taking out a loan which allows you to make over payments without any charges, borrow more than you need to get the better rate, then over pay the extra that you've borrowed to bring the balance of the loan back down again?

Right, yeah I have never had any credit with them, I have a debit card through them but have never applied for a credit card as I didn't ever feel the need. I have a capital one credit card on 100% payback that I havn't used in years.

I am signed up to the electoral role also.