First Time borrower needing £4,000

lady_brum

Hi ladies & gents,

First time posting although I have been browsing the forums for a while now, plenty of great information available!

I'm in need of some good advice as to how to go about my first time borrowing please. I'm a 22 year old Teaching Assistant, earning a little over £10k per annum in my current employment where I have worked for 2 and half years. Still living at home with parents where we have been for 10 years, on the electoral roll too. The only accounts I have had are a HSBC current account without overdraft and a mobile phone contract, both are up to date and settled I believe. I checked credit expert's credit score not long ago which stated an 'Excellent' score of 960 iirc. Think thats enough information about my self?

I'm needing to borrow around £4,000 in order to buy a car, ideally spreading the repayment over 3 or 4 years, reasonable? I am still unsure whether i'd be better off taking out a personal loan or credit card? I would like to keep the number of applications as little as possible so I don't damage the score which makes me want to know which credit I'd be more likely to be accepted for? Any well regarded companies that should be likely to accept? Worth sticking with HSBC after my current account with them?

Thanks in advance for any help shared,

Muchly appreciated!

Lady Brum x

digital-one

I would certainly not take a 4k loan for a car on a credit card! Nor a cash advance.

At 10k with an excellent credit rating your probably better off asking your own bank first what they normally charge for a 4k loan over the shortest term you can manage, and at what interest rate. That way your not "applying" your only making an enquiry
You can also ask other banks, then actually only apply for the best deal.

Raggs_2

If you still live with your parents, in theory your costs should be quite low, any chance of buying a cheaper runaround and saving for it, a loan for 3/4 years could end up being a lot of interest.

lady_brum

Thanks for the help guys,

It does seem like a loan would be much better than a credit card then. That sounds like a good idea digital-one, will have to make sure I do that soon.

Unfortunately there's no way I can borrow from friends or family, yep my only costs are £100 per month I give towards rent/food. I need a car very soon to start a new job and ideally want to get something that will last at least a good few years, hence the £4k.

Interest may not be such a big problem as it's likely, although not definate, that I'll be recieving a considerable few thousand of inheritance meaning I could clear the loan early and cut out the interest.

Thanks again,

Lady Brum x

lady_brum

Oops,

I forgot to ask how the basic loan details will affect the chances of being accpeted for the loan. Most importantly the term (3 or 4years?) and the option to defer repayments for the first 2/3 months?

As mentioned before, I should be able to clear the loan early with the inheritance so my main objective is being accepted quickly so I have time to shop around for a good car before I need to start the new job.

Thanks and thanks again

Mrs_Becky

Hi, Im a single mother in
London and i have been a
victim of fraud twice.
I saw your placement for a
loan, and i considered to
give you a word of advice
on how to go about it,
because people you see out
there these days are all
scams, i repeat scams! if
you think you can trust
them; it is all lie because
they have done that to me,
Feel free to email me:beckyshaw2010@rocketmail.com
Mrs Becky

babymoo

Lady brum it is possible to buy a decent run around for very little. You just have to know what you are looking at. I bought my car last year for £595. It is 13 years old, had 60k miles on the clock and had 1 lady owner since new. I can honestly say with my hand on my heart it is the best money I have spent. Other than the obvious costs of running a car (fuel, tax, insurance) that it has not cost me a penny. It flew through it's MOT and I honestly believe it is just down to it being well looked after.

Even if it only lasts you 12 months, in that time you can save up the money for a newer car.

buffbuff

Mrs_Becky wrote: »

Hi, Im a single mother in
London and i have been a
victim of fraud twice.
I saw your placement for a
loan, and i considered to
give you a word of advice
on how to go about it,
because people you see out
there these days are all
scams, i repeat scams! if
you think you can trust
them; it is all lie because
they have done that to me,
Feel free to email me:beckyshaw2010@rocketmail.com
Mrs Becky

Something don't seem right with that post or is it just me ?:rotfl:

Don't email them !!!

babymoo

not just you i thought it was rather dodgy aswell. I'm also fairly certain its against the rules of the forum to post your e-mail address?

Jon_B_2

Lady Brum, what if your situation changes in 2 years time and you need to find a place of your own? 10k a year isn't a lot in the big wide world of rent and bills. Especially when you'd still have 2 years left on a loan repayment. Think about your choices carefully. See if you can save up £2000 and buy a different car. Lots of decent cars about for 2k.

bouncydog1

Before you purchase your car, may I suggest that you look at what the insurance costs are going to be. If this is your first car then even though you are 22 you will not have any no claims bonus and you may get a shock as insurance costs have risen.

You may find it useful to find out what the cheapest car to insure is going to be and this will then help you in deciding how much to spend.

£4k on a £10k salary is a huge amount of borrowing for a car, particularly as you are going to pay it off over 4 years or so. You will not be able to buy a new vehicle so by the time you have finished paying for it the resale value is going to be low.

Personally after finding out what is the cheapest vehicle for you to insure, I would look at used cars a few years old significantly less in cost that £4k. Don't foget all the running costs as well - fuel, tyres, servicing, MOT, excess if you have a claim etc.

At the end of the day it is up to you, but there are awful tales of people on here, who have ended up in huge amounts of debt which can be traced back to borrowings for cars.