First time borrower

Kheeli

I've been refused by my own bank for a loan for my first car. They said it was because I haven't had credit before.

I do have a student loan of £1900 (I've just finished my first year so not required to pay it back yet)

I don't have any credit cards or outstanding debt (well I owe my mum a bit :rotfl:) I'm a mature student with children. My main income is my bursary, student loan, ctc and cb.

I've checked my credit report and came into the 'fair' category, with 767. It said there are no negative factors affecting my score.

Has anyone got any advice for me? I don't want to try loads of companies I know lots of credit searches go against you.

Many thanks!

[Deleted User]

ensure that you are on the electoral register, and check your credit report with all three credit reference agencies.

Look at Martin's sectoin on building up a good credit history http://www.moneysavingexpert.com/loans/credit-rating-credit-score

CLAPTON

what is your annual income?

Kheeli

CLAPTON wrote: »

what is your annual income?

About £30k p/a (more than I thought adding it all up!)

CLAPTON

having lasted all these years without needing credit, and with a decent income why not just buy a cheap car without borrowing?

Kheeli

CLAPTON wrote: »

having lasted all these years without needing credit, and with a decent income why not just buy a cheap car without borrowing?

:rotfl: all these years! I'm 27 lol!

I need to spend more as I'll be doing more miles than average. I'm currently paying extortionate amounts for the train.

My income is not as good as it sounds, with 4 children a hefty proportion goes on childcare (and public transport).

I've managed to save a little bit so wouldn't need a loan for the full amount.

CLAPTON

In this period of history, being 27 and not having ever had a loan is pretty good going.

I don't understand why you need to spend 'more'
'more' that what?
plenty of cheap reliable cars

Kheeli

I completely agree but I know nothing about cars and have no-one to help. I presume cars from a garage (therefore more expensive?) come with some kind of guarantee?

Thanks for all your help :-)

newdawn_2

As are getting a busary I assume you need to travel to placements. Although having a car will make this easier it can be a real financial drain. Most Second hand cars are only covered for 3 months under warranty from a garage and not a good idea to get a new car as a first car.

You also need to factor in running costs, tax, mot and repairs (I budget £500 a year)

Does any of your friends have partners who could help you pick up a cheap second hand one?

Kheeli

Thanks, I'm currently paying over £300 a month for public transport so that'll help towards the cost. I have to travel to uni as well as placement.

I wasn't going for a new car, have been warned off them before!

My sisters boyfriend has offered to help me when I'm ready but he doesn't live in the same city so makes it a bit more difficult.

Even if I get a cheaper car I still need to borrow a bit of money :-)

CLAPTON

just show your costings