First Time Loan

powerbase

Hi,

I've decided to get a loan so I can buy a new car. I have half the money for the car already so I'd need a loan for the other half (5-7k) over 3-5 years. I know the details aren't exact but I'm still deciding.

I've never needed a loan before this is why I'm asking all these questions. I have a very good credit rating and I'm very careful with Credit Cards (I do tart but only do put the money from the CC into high interest savings account and it's paid at the end of the interest free period so it's not "real" debt as I have the money). I also space out any applications I need.

I'll go to my bank this week but from looking around I think I'll get a better deal online with monekback. What information do you need to provide? Do you need to send away payslips etc? How long does it take, is it a high or low acceptance rate, and what do people think of moneyback in general? I don't want to bother applying for a loan if I'm not going to get accepted and leave a messy footprint on my credit history. What about masterloan as well?

Any information would be appreciated.

Thanks

darkcloudi

Moneyback do provide good rates of interests on loans as my sister used them for there loan. They are a subsidary of Alliance and Leicester. My sister hasn't had problems with them.

I believe she borrowed £4000 and never needed to provide wage slips, you looking for a little more so they may request to see them. The rate of interest they provide is determined on your credit rating.

I used the AA for my Car Loan and it was a joint loan with my mum for 11000 and never had to provide any wage slips either. Although they might be some instances where they may ask to see them. This was my first loan and it went through immediatly. Also had no problems with them or there customer service.

If your credit rating is good you should be fine to get accepted for the loan and the money is sent to your bank quite quickly from the two companies I mention above, usually within 5 days of them receiving the signed agreement.

Rafter

pb,

Banks like Moneyback Bank, Northern Rock and Masterloan don't make any money out of loans at these rates unless you accept the overpriced insurance.

Because the rates are so good they attract enough applicants to 'cherry pick' those who accept the insurance then make a tidy return.

So.... you need to play along with their games....

Accept payment protection when you apply and you will probably get the rate advertised.

Then call up and ask for the paperwork to be reissued without insurance - they won't like it but they cannot withdraw their loan offer - the insurance is for your benefit not theirs and cannot be made compulsory - by law.

Good luck.

R

PS - you will probably get the best rate if you apply for more than £5000 and watch out for early repayment charges. Don't think Northern Rock charges them but others do.

Luke

Are you saying you already have over £5000 in cash? I don't want to be a kill-joy but lets look at the facts:
- Loans cost money
- Cars fall in value
You could get something nice for £5000 easy if you looked.