Advice: Car Loan Bad credit

Dondaddyd

Hi

I'm in need of a new (used) car. I'm looking for a loan amount around £3000 - £5000. Basically I can pay up to £200 a month with a maximum duration of 3 years. I've done the sums and am absolutely certain of this.

My Experian score is poor (650) and I have a default on my account, which is about to be settled at the end of this month.

There are a plethora of Bad Credit Loan companies out there but I'm not sure which to go for as all seem to have mixed reviews.

Is there a reputable bad credit loan company?

Based on experience can anyone please recommend me a bad credit loan company?

I went through the Experian website looking for a loan and they put me through to Aspire who sourced Everyday Loans, while they approved me I didn't have a good feeling about them so declined the offer.

Any recommendations of bad credit loan companies based on experience dealing with them would be much appreciated!

Also, if there are any other solutions as to how I can finance a car (other than saving because time is an issue) other than a loan please share! I'm in need of a solution.

Tixy

I'm sorry but there aren't any good bad credit companies.
The good companies lend to people with good credit history and who they believe are able and likely to pay back the money they owe.

Whilst your account has an unsettled default then I would think your chance of getting any loan for this sort of amount is very very unlikely (except for a guarantor loan which is another bad idea).

Once the default is satisfied and shown as satisfied on your credit report (which could take up to a couple of months after the date you pay it off) then you might stand a chance of getting secured car finance with one of the higher APR outfits. But you'll pay through the nose for the vehicle and the finance.

Don't go through any loan brokers and never enter your bank details into any of the loan broker websites, or even a website that looks like its an actual lender, all you will do is lose money from your account.

As another solution could you not save up the £200 for just 3-4months and buy a cheap runaround to get you about, whilst you continue saving for a better car?

CH27

Dondaddyd wrote: »

Hi

I'm in need of a new (used) car. I'm looking for a loan amount around £3000 - £5000. Basically I can pay up to £200 a month with a maximum duration of 3 years. I've done the sums and am absolutely certain of this.

My Experian score is poor (650) and I have a default on my account, which is about to be settled at the end of this month.

There are a plethora of Bad Credit Loan companies out there but I'm not sure which to go for as all seem to have mixed reviews.

Is there a reputable bad credit loan company?

Based on experience can anyone please recommend me a bad credit loan company?

I went through the Experian website looking for a loan and they put me through to Aspire who sourced Everyday Loans, while they approved me I didn't have a good feeling about them so declined the offer.

Any recommendations of bad credit loan companies based on experience dealing with them would be much appreciated!

Also, if there are any other solutions as to how I can finance a car (other than saving because time is an issue) other than a loan please share! I'm in need of a solution.

There is no such thing.

Apples2

It's like asking for a Tall, Short person, or a Fat skinny bloke.

Dondaddyd

That's a terrible analogy and not very helpful either. Thank you to all those that have answered constructively.

By "reputable" I mean they operate to a level of service comparable to say a high street lender, I'm not expecting the interest on the loan to be low. I just don't want to do business with lenders that appear dodgy or give me misinformation and have a reputation of doing so.

For example Aqua (credit card) may have a high APR due to the market it targets, but the actual customer service they provide I didn't find that bad.

DCFC79

Dondaddyd wrote: »

That's a terrible analogy and not very helpful either. Thank you to all those that have answered constructively.

terrible analogy no,

helpful yes as it was funny

why not save up or i can offer a loan but you wouldnt like my interest rates and what the penalty is for missing a payment.

Have you tried any loan companies ?

Apples2

The answer to your question is that there isn't one!

Your only option to get onboard with a reputable lender, is to get someone to guarantor your loan for you, although you won't find many on here promoting any pro's about that!

It's bad enough these days for someone with a good credit file to get a loan, but you have a default.

If you own bank will not accept you, there is no sensible option.

It is simply crazy to consider hideous interest rates simply because you fancy awarding yourself a £5k car.

DCFC79

You might have already thought of this OP so apologies, but Do you actually need a car thats worth £3,000 to £5,000 and why do you need a car thats worth £3,000 to £5,000. Can you not make do with a les expensive car eg 1 that is within your means.

Dondaddyd

DCFC79 wrote: »

Have you tried any loan companies ?

I went through the Experian website looking for a loan and they put me through to Aspire who sourced Everyday Loans, while they approved me I didn't have a good feeling about them so declined the offer.

Also, if there are any other solutions as to how I can finance a car (other than saving because time is an issue) other than a loan please share! I'm in need of a solution.

So pretty much the general consensus is that bad credit loans are a bad idea.

This leaves me a little stumped...

It is simply crazy to consider hideous interest rates simply because you fancy a £5k car.

A little presumptuous perhaps, I said at the beginning of the thread that I'm in need of a new car. Now the value of the car is irrelevant. Affordability is subjective. If you have an issue with the price I've stated that's your issue.

I don't need to justify whether I need or "fancy" a car, my personal circumstances are just that, personal. What I came here for is advice about bad credit loans.

BackOnTrack

Your best bet is probably wait until the default shows as settled then go to a dealership and see if they can do anything to help, be honest with them. I would expect the answer to be that they won't be able to get finance for you but it is probably your best bet.

It is also quite possible that if you can get around 1k together you could get an older car that will still be reliable. Japanese cars from the 90's are very reliable and may hit this price point just look out for anything that has been thrashed by boy racers.

Dondaddyd

DCFC79 wrote: »

You might have already thought of this OP so apologies, but Do you actually need a car thats worth £3,000 to £5,000 and why do you need a car thats worth £3,000 to £5,000. Can you not make do with a les expensive car eg 1 that is within your means.

I do need a car for both professional and personal reasons. And unfortunately the sooner the better. It is possible that I could get a cheaper car, would that in itself make a bad credit loan more viable?

As I said being able to afford payments of up to £200 over a 2-3 year period isn't really the issue. It's who to go with.