Welcome Finance

Sk8lly

I want to get a new car, but got poor credit after being silly when i was younger, i knew the interest rate would be high but i was quoted from welcome finance, after adding it all up i would be paying back 220% on a loan of £3500.

Does anyone know if anyone will entertain me at a lower rate??

IanBroadhurst

You tend to get better credit from a company you already have a track record with. My suggestion is to approach your bank directly and see if they can help. If your credit is shot you may have to build up your credit rating first and get a better reputation. Your other option is to get a car on a secured basis - hp - the rates tend to be less ridiculous because if you don't pay they reposses the car. You may struggle if the loan to value on the car is not good enough - by that I mean if the value of the car once the loan is bring repaid is not enough to pay off the car if you don't pay off the loan.

I don't know how old you are - but sometimes having a g'tor on a loan is a help - it improves your credit score and generally reduces your rate.

personally I wouldn't touch the likes of Welcome - they like alot of companies hike up their rates to people who have been silly at a younger age, they are legitimate loan sharks.

I was a bit silly in my youth - I got a credit card, then from that I bought a sofa on interest free, kept up repayments, then got a small loan, and gradually built up a good credit score. If you can postpone plans to spend so much on a car now and wait a while it would be worth it in the long run.

Of course if your desperate you could take the loan, repay it for a year A paid and then approach your bank for a loan to pay it off - beware though this will cost you - your settlement figure will be higher than the amount you borrowed. Try and get the shortest term loan you can afford to repay and this will offset the interest you pay.

Hope some of that helps - ian

lost_but_looking

if you can help it don't go near them. i did and it cost me no end of problems. depending how bad ur credit status is you can actually go to ford direct!!!

nomoneytoday

How do you work out 220% interest on £3000?

The most exensive loan I could find is £142 month x 48, which is about 61% APR, total paid back £6800ish

Cumbrian_Male

Sk8lly wrote:

I want to get a new car, but got poor credit after being silly when i was younger, i knew the interest rate would be high but i was quoted from welcome finance, after adding it all up i would be paying back 220% on a loan of £3500.

Does anyone know if anyone will entertain me at a lower rate??

Don't buy a new car, spend £500-£1000 on an older car and run it for 4 years while saving what you would have paid on the loan into a savings account, then upgrade.