Very small loan

joeyoung

I amin need of a very small loan, about £1500.
I have just got a new job that pays £25,000 a year and am in need of a car to get there.
As you can see I will have no problem paying this back, I am 21 and live wiht my girl friend and her parents, I have very limited expensses and could potentially pay this money back withing 3 months, 4 at the most.
I have never taken out a loan before and honestly, do not have a clue about this. I have asked friends and family but they are just unable to as thery don't have the money.
Any suggestion?

Thanks,
Joe.

Emmzi

take your contract to see your local bank office. They usually prefer you to be employed for a few months but may make an exception if you have a good record with them.

[Deleted User]

I bought my last car with a 0% credit card! It was £2400 and i had 12 month interest free so I paid it off at £200 per month, didn't use it for any new purchases, and the whole thing was cleared before i had to pay any interest. Obviously you have to buy through a dealer rather than a private sale but its a very satisfying way to buy a car :j

joeyoung

I don't own a credit card and was speaking to my friend about 12 month interest free CC but I gather the bank don't just give anybody a credit card, how do I go about doing this? What sort of requirements are needed? Sorry I am really new to everything like this.

DevCoder

tbh with your lack of credit record then £1500 CC limit would be borderline in current climate.

they would probably offer you a loan as long as you meet credit criteria for a loan which is less stringent, electoral roll, no missed payments on credit, no ccj etc.

Expect about 12% APR, but if you could save for 3 months and repay then the settlement figure comes down a lot on the loan.

joeyoung

Only prblem is I have had a couple of missed payments on my phone contract until I cancelled it to save the trouble because at that point I was in and out of work. But now being in a secure jo with a very big company, I am not sure they would be entirely convinced.

[Deleted User]

could you buy a much cheaper car ?whilst it might not last long it should give you time to save for something better,and also have you taken into account how expensive insurance will be at 21?

joeyoung

This si including my insurance, the car will be about £1000 and insurance being £320 deposit with £180 in installments over 10 months. I would rather have a car that get me home from work not just to work

maginot

Unfortunately it woud be unlikely any mainstream lender would make a loan to you.

All they will see is :-

1) missed payments
2) lack of credit history (apart from missed/late payments)
3) new job with lack of security
4) no fixed address (are you a tenant or have any bills in your name?)

Are you on the electoral role at your girlfriends parents house?

It is often is a vicious circle when you need money to make money etc

The advice I'd recommend is either try to borrow from friends or family for a really cheap runaround or scooter! Or just have to use public transport for the initial few months until you have saved some money.

It is sometimes a good idea to see how the job goes before getting into significant debt, you will have £3000 to pay before you have even seen a first paycheck!

poppasmurf_bewdley

I agree with everything Maginot says above.

Maybe a bike and a tracksuit would be an idea for you. Tell the new firm you're a keep fit fanatic.

Peelerfart

Is it just me or does £1,500 not sound like "a very small loan"?