Loan question - car and credit card

jaxs

Part one:
As the Halifax were about to put the interest rate up on my already expesnive credit card, I've done the sensible thing and cancelled the card to keep it at the current rate. While I was closing the account, the man at Halifax asked if I'd though about taking out a loan to clear the outstanding amount. I hadn't thought about this, but he sowed the seed in my brain. Doing it this way, the amount would be cleared over a set period of time and the monthly payment would be the same as the minimum payment on the credit card.

Part two:
I'm thinking of buying a new(or newish) car as mine is costing me a fortune. Its only a 2003 Corsa but the road tax is over £200 because the emmission are really high and its guzzles petrol (only does about 35 mpg) to name a few things. To get a new car, I would need finance.

Now, as far as I know I have a reasonably good credit rating (must check to be sure as I haven't done so for about 6 months) and shouldn't have any problems getting either loan and I can afford both loans aswell.

My query is if I was to apply for 2 loans within a short space of time (say a 1-2 week period), would it cause any problem with lenders wondering what I'm up to? Is there an order I should apply (car loan first then the other one)? I'm looking to pay both back over a 5 year period.

Any guidance would be greatly received.
Thank you

Tixy

How much do you owe on the card?
What amount were you thinking of borrowing for the car?

Are you thinking of a personal loan for the car? If so why wouldn't you just apply for just one loan large enough to cover both items. Usually you would expect to get a better APR by borrowing more.

If you are thinking of going for secured car finance I would think apply for the personal loan first (as secured finance is easier to get). However if the car finance is more important to you than getting a loan then maybe apply for that first.

Whichever you apply for first could affect your chances of getting the second item as well.

Alternatively you could apply for the loan to pay off the card, then pay off and close down your credit card and wait for this to update on your credit file (1-2months) before you then apply for a car loan - this route would ensure it doesn't look like you have as much credit available to you. I suppose it depends on how much you earn, owe, your existing credit levels and how much you are planning to borrow as to whether the amount of credit you have is likely to be a issue in getting the loans.

jaxs

The card is just over 11k and the car would be about 10k. As I said, I dont think I'd have a problem getting both, but Im thinking the main thing is to get rid of the credit card debt and maybe live with my current car for a bit longer.