Declined for a loan, can anyone explain?

CLAPTON

OK
I don't know your full financial details; maybe you have a very rich relative who will leave you enough money to clear the debts.......
but the very idea of borrowing money over 8 years to buy a car is complete madness;

re-thionk what you mean by afford... it actually means that you have sufficient money to buy what you want; not that you can afford repayment over 8 years... what happens if the car packs up after 3/4 years or your family circumstances change; or the bonus dry up;

you are setting yourself up for a lifetime cycle of debt; need to borrow because you can't afford to save as you have to make the repayments; so you have to borrow again because you can't afford to save because...... for ever

re-think the whole thing
work on a strategy of being debt free within 2/3/4 years... think about it
talk about it with your OH and work on it together

whyever do you NEED a new car; don't you have one already? if not think 1-2k and concentrate on getting rid of the debts.

Emmzi

no, the issue is the amount *and* your file.

borrowing less will help.

HP instead of a loan may also help as it is kind of secured on the car.

MFWannabe

CLAPTON wrote: »

OK
I don't know your full financial details; maybe you have a very rich relative who will leave you enough money to clear the debts.......
but the very idea of borrowing money over 8 years to buy a car is complete madness;

re-thionk what you mean by afford... it actually means that you have sufficient money to buy what you want; not that you can afford repayment over 8 years... what happens if the car packs up after 3/4 years or your family circumstances change; or the bonus dry up;

you are setting yourself up for a lifetime cycle of debt; need to borrow because you can't afford to save as you have to make the repayments; so you have to borrow again because you can't afford to save because...... for ever

re-think the whole thing
work on a strategy of being debt free within 2/3/4 years... think about it
talk about it with your OH and work on it together

whyever do you NEED a new car; don't you have one already? if not think 1-2k and concentrate on getting rid of the debts.

Exactly as Clapton says; couldn't have put it better myself!!

You don't really NEED a new car you WANT a new car.
Go ahead with this 'plan' and you'll be back on here in a few months time asking how to get out of the mess you're in because you'll be in way over your head

Seriously have a really good think about all of this.

Apples2

Never finance a car over more than 3yrs.

You will either be bored witless with it, or it will be playing up after 3yrs.

Do you REALLY think it is going to be your pride and joy in 2019 when you are still making monthly repayments on it??

Major rethink of priorities are the order of the day.

opinions4u

I don't normally frequent the loan board. The reckless approach of people to their own finances is quite extraordinary.

Berto, have you noticed a trend in your financial life yet?

You have loans and credit cards. The balances have, over a period of time, increased. Now you want to increase the debt again.

This is a totally unsustainable course of action. You are hooked on using credit to finance your lifestyle.

You need to take a step back and assess what purchases you are making on credit and why.

If it's a car, fine - but 8 years to repay the debt? The debt will outlive the car. How will you then finance the replacement? You really do need to get in to the habit of saving up for the things that you need, rather than borrowing all the time.

At the moment you are spending more than you earn and will carry on doing so until companies like Tesco stop you by declining you credit. This is a wake up call. Take advantage of the favour Tesco have just done you and make some significant adjustments to your life. Moving across to the Debt-free Wannabe part of the forum may be a good start. Time to reduce your debts, not increase them further.

Berto

Wow, I ask for some simple advice and people start jumping to conclusions and telling me how to live my life.

I'm not looking for advice on how to manage my finances or advice on buying cars, i just asked why I was declined.

I was going to explain my situation but I feel that it would not be beneficial or required. So instead I will give my thoughts, reasons and feelings, I am looking to become debt free in my own time, paying back an amount each month I feel comfortable with that allows me to actually enjoy and live my life as i see fit. I dont want to be paying back so much each month that I live like a hermit and become bitter towards my own financial situation. I personally feel that life is to be lived and enjoyed, it is far to short to be worried by money and getting debt free, i feel comportable being in debt and would be happy with the repayments I would have been making.

My past financial history is unknown to everyone here (as is my wife financial situation) and I feel upset by some of the opinions people have expressed and the "box" I have been put into regarding my current life style and my financial situation. I feel happy with my life at the moment, i am happy with my current repayments. I was not looking to get myself into an very repeating cycle of debt and I dont feel that I owe more than I earn and over time my debts have dramatically reduced not increased.

I wanted to treat myself to a very special car that would not drop in value over time due to being a classic and I certainly would not become bored of. My reasons are my own, I have thought long and hard over my situation and would have been happy to pay the amount over the timescale.

I can see that the intentions of people are to ward me away from making, in their eyes, a bad decision, but that is why the world is so interestering, we are all different and do things for different reasons. I am not an idiot who is hooked on credit, I am looking to enjoy myself and my life before it has passed me by.

As a side issue I DO need a new car, my current car is on it's last legs and while we can make do with 1 car between us for a short time, it will not be practical for too long and I wanted a car I could look after myself, repair myself if needed and would last. Instead of getting a rust bucket that would die after a year or 2 and then i'd have to buy another, in my opion this would be a complete wast of money and time and i would be entering a cycle of never ending spending. Driving is my one true pleasure in life and seeing as I am 30 and insurance is now quite reasonable I felt that the time was right for me to buy my dream.

Sorry to give a bit of a rant but people have dismissed me and my ideas as if I haven't a clue, passed judgement on my credit history, and judged myself and yet they dont know what I am trying to achieve. As I said there will be people who disagree with what I am hoping to achieve but I was not looking for advice on that, I just wanted some help getting my head around the credit check system and to see if the errors on my file were causing me any problems. I can see that they do and I am getting them resolved and i'm having a re-think about my situation.

But for future reference I would not advice those who have been posting advice on a money forum for so long, to be so quick to judge those of us who are new. Usually I have felt welcome when joining a new forum, this experience has been much less so...

Apples2

Good luck to you but by the time you realise that pretty much everything you have written is completely wrong... it will be far too late for you to get out of your debt hole on your own.

Berto

Could you explain how please?

I know in the end i will be paying more for my borrowing, but other than the mortgage my other commitments will be finished in 2018. In that time I will have managed to live comfortably, enjoyed myself and even if work quiets down I will still manage to make my payments. My original plan to be debt free by 2014 will be pushed back but I fell happy knowing that.

Apples2

Berto wrote: »

Could you explain how please?
.

Have a read at the responses in this thread below to see why

https://forums.moneysavingexpert.com/discussion/2690239

Berto

Thanks for that, great help you are. I dont think im getting anywhere here. I've tried to be civil and explain my thinking but other that "you will get into more debt" (which i am aware of and fine with) I'm not getting any advice but objections and sarcastic posts. So this is the helpful and informative nature of this website is it? Belittle new people, treat them like idiots and go off topic very quickly.