Help!! Confused and BROKE!!

thefamousexcuse

Hi guys, hope your all well. Here is the problem .....

I am currently 18 and self employed. (Self employed by a marketing company, will be salaried by no later than June.) I am looking to take out quite a substantial loan so that I can learn how to drive, take my test and then get a car because travelling between offices is beginning to cost me a fortune. So much so that if I carry on spending this amount of money on travel and other expenses I will have to leave my job which would leave me in a worse situation.

I have applied with my bank that I have been with for two years and had an income (was salaried) on a regular basis, but because I was only 18 4 months ago apparently I have no "available" credit? This is really a pain in the !!! to be honest because I have no idea what to do and its starting to cause a whole load of other problems.

Its not like I dont earn enough to be able to pay it back, roughly at the minute I am earning about 400pw before tax.

Any suggestions would be most appreciated

thanks
xx

ciscokid

https://www.zopa.com

BackOnTrack

thefamousexcuse wrote: »

I am earning about 400pw before tax.

Not sure if things have changed since I learned to drive but can't you just pay the driving instructor weekly?

Tixy

Hi

Rather then take out a loan it sounds like you could afford to pay for driving lessons out of your available income (and possibly still save some towards a car in the meantime?). I really would not even consider getting a loan until you have passed your test - as you have no idea how long it might take you to pass.

Getting a large loan at the age of 18 is probably near impossible in the current financial climate, and being self-employed won't be helping either.

Hopefully you'll find you won't need a loan for a car but you still might want to consider starting to build up a credit history for the future. You might want to start doing this by applying for a sub-prime credit card - these have low limits and high interest rates so only consider this if you know you'll be disciplined enough to repay the card in full every month.
Also have a read of this article for other tips on improving your credit file (such as making sure you are on the electoral roll). http://www.moneysavingexpert.com/loans/credit-rating-credit-score

thefamousexcuse

ciscokid wrote: »

www.zopa.com

ciscokid, I havnt heard of these people before and I am sure I have just been reading one of your posts where you have tried them before???

JasX

As above start learning and paying for lessons weekly, start saving for a car and don;t consider buying one until you have a test passed certificate in your hand.... depending on how dim / uncoordniated you are passing could take years.....

...but probably won't, seriously no point shelling out interest on a few thousand pound loan on the offchance you might bea able to buy and drive a car with it at some unspecific point in the future maybe.

Interest payments to make on TOP of your current travel costs which you won't have the option to opt out of in future... Are there any other options to cut costs of getting into work? young persons rail card? carsharing? buy a longer period season ticket? learn how coaches/buses work?...

If not hopefully you're getting good experience in the meantime and can just look at it as an investment in your future as 4 years down the line you'll have a good CV and a good job and all the other completly inexperienced unemployable oiks will be alot worse off than you

worst case can you cut back spending elsewhere? even in london you should be able to survive on £1730 net a month

thefamousexcuse

Thanks for your quick replys!

Yes I completely understand that taking out a large loan at 18 is a big thing to do and most lender are reluctant to do so in the current climate. But I am beginning to think that this is my only option!

Also paying the driving instructors weekly can also be done, but as I said in my previous post once monthly travel, rent and bills has come out of my salary there is not alot left, hence the need for a car. At present I can be spending anywhere up to 600 per month on travel! This is completely riduclous!

I have had a few driving lessons and just need to finish them off and pass my test. Which can sound very optomisic I know but this is really the only thought process I have
xxx

ILW

thefamousexcuse wrote: »

Thanks for your quick replys!

Yes I completely understand that taking out a large loan at 18 is a big thing to do and most lender are reluctant to do so in the current climate. But I am beginning to think that this is my only option!

Also paying the driving instructors weekly can also be done, but as I said in my previous post once monthly travel, rent and bills has come out of my salary there is not alot left, hence the need for a car. At present I can be spending anywhere up to 600 per month on travel! This is completely riduclous!

I have had a few driving lessons and just need to finish them off and pass my test. Which can sound very optomisic I know but this is really the only thought process I have
xxx

So if you do not pass the test for a while, how are you going to service the loan?

PS. I would be a bit wary of taking any financial advice from Ciscokid.

ryantcb

i would recommend taking your CBT for a bike. it is around £130 and almost guaranteed pass. then your bike is cheaper by miles to run. get the car when you have the money to burn as petrol insurance lessons and test fees will be stupid money at 18. seriously for the commute get a bike CBT.

thefamousexcuse

Servicing the loan again wont be a problem as my partner and I would pay it off together, we are both working, he is salaried so we have a regular income. Its just trying to find someone that will actually loan me the money.

I can drive I just need to pass my test and I am quite confident in that.

Just a quick question has anyone ever heard of Wentworth Direct Finance? They have offered me the full amount of the loan but I am a bit weary because I have never heard of them before. Has anyone had any previous dealings with them? I have read a few reviews and some are very negative....is it the usual sort of person who just writes a negative review or should I really stay clear??

x

thefamousexcuse

ryantcb wrote: »

i would recommend taking your CBT for a bike. it is around £130 and almost guaranteed pass. then your bike is cheaper by miles to run. get the car when you have the money to burn as petrol insurance lessons and test fees will be stupid money at 18. seriously for the commute get a bike CBT.

Haha I have thought about this but travelling from London to Leeds, Manchester, Newcastle, Cardiff and Madrid on a bike could be rather difficult and time consuming!!!