Car loan - should I say it's for a car?

pimento

I'll be caling my bank tomorrow (First Direct) for a car loan. £6000 over three years.

I have no reason to think they'll refuse me, but should I tell them it's for a car? Will they even ask what I want the money for?

I have an idea that sometime in the past I have read/heard that it's better not to say you want money to buy a car... Or am I mistaken?

_Andy_

they will ask the purpose of the loan. Saying it's for something else is fraud - never a good idea.

pimento

I don't mind saying it's for a car, but not if it means they're likely to charge me more interest for it.


ETA: Is it really a criminal offence to say that you're borrowing money for one thing and then spending it on another? Especially on an unsecured loan?

Asa

pimento wrote: »

I don't mind saying it's for a car, but not if it means they're likely to charge me more interest for it.


ETA: Is it really a criminal offence to say that you're borrowing money for one thing and then spending it on another? Especially on an unsecured loan?

Thats doesnt sound right, if you are borrowing money and are going to pay it back with a load of interest, why should it matter what you spend it on and how would the law come into it if you was to say you are going to use it for one thing and actually get something else?

_Andy_

pimento wrote: »

I don't mind saying it's for a car, but not if it means they're likely to charge me more interest for it.


ETA: Is it really a criminal offence to say that you're borrowing money for one thing and then spending it on another? Especially on an unsecured loan?

It's scary how many people on this forum think fraud is absolutely fine.

Weirdlittleman

_Andy_ wrote: »

It's scary how many people on this forum think fraud is absolutely fine.

Well its not exactly punished is it. Dare me nasty to the fraudsters and you will get a ban though

OP - You must tell them; it won't affect the rate; in many ways the bank are more likely to give a loan for a car than for you to !!!! it up a wall. At least there is an asset (albeit unsecured) behind the loan.

pimento

It's academic anyway. The robbing swines want to charge 11.9% so I won't be borrowing their money anyway.

I still don't see what difference it makes what the money is for. I re-mortgaged three years ago and as I didn't want a gap between the changeover, I had to guesstimate the maount I needed to borrow. I was a bit out and ended up with £150 too much. I then had to complete a form telling the bank what I intended to do with the £150.
I told them I was getting my hair done with it.

Weirdlittleman

pimento wrote: »

It's academic anyway. The robbing swines want to charge 11.9% so I won't be borrowing their money anyway.

I still don't see what difference it makes what the money is for. I re-mortgaged three years ago and as I didn't want a gap between the changeover, I had to guesstimate the maount I needed to borrow. I was a bit out and ended up with £150 too much. I then had to complete a form telling the bank what I intended to do with the £150.
I told them I was getting my hair done with it.

Depending on your credit status etc and period of loan 11.9% may not be too bad. Its certainly not the best you could get but the advertised headline rates are for the most credit worthy profitable loans.

pimento

I won't be ringing around and getting muddy footprints all over my credit record. I'll just have to sell some premium bonds and buy them back a couple of hundred pounds at a go like I would pay the loan off.

Their loss.

Enfieldian

11.9%? Yes please....! But can they make it £10,000?

pimento

Is 12% considered a good deal then? Even at the garage I bought the car from were offering finance at 12%.

What really annoyed me most is that on their front page, my bank is advertising 8.9%. Now, I have no debts except my (smallish) mortgage and have some savings, don't use my overdraft and am only borrowing just over 10 of my salary. So what do you have to do to get 8.9% I wonder?