Loan For a Car & Consolidation - A Few Questions

grantp_2

Hello,

I am fairly new to all of this. I am looking to get a new loan and have some questions before I go ahead.

I currently have a £6000 loan over 5 years with my bank (Halifax). I want to take out a larger loan to pay the balance of this off (£4600) and clear some other debt plus buy a new car.

I'm looking at £17500 over 7 years.

1) Do I stand a better chance of getting accepted if I stick with my bank? Northern Rock do a better rate so would prefer to switch if possible.

2) I have heard that if I apply for a loan and the application is rejected that I cannot realistically apply for another one for 3-6 months?

3) Does taking PPI offer a better chance of being accepted?

4) I have heard that you can only borrow as much as your salary? I earn around £17000 gross but net earnings are around £12,500-£13,000.

4) The Equifax Smart Search on MoneySuperMarket.com states my credit record is 'Good.' I'm hoping this should suffice to get accepted.

If anyone has any advice/tips or anything to bear in mind, as I really need this loan accepted! Can't wait another 3/6 months as current car does need replaced.

Thanks in advance for any advice.

Hermione54

Sorry to be negative, but you are about to make the same mistake as I did, and so many others have on these boards. You cannot borrow your way out of debt, consolidation just means things get worse and worse. If you absolutely must have a reliable car, you don't need to spend thousands. The depreciation on a new car is horrible and you will owe far more on it than it is worth for years to come; get a good modest used one. I really wouldn't advise someone on £12.5k - £13K net salary getting a loan for £17,500, especially if it is over 7 years and mainly for a car that you will probably want to change after four or five.

grantp_2

Thanks for your response. Your comments have been taken on board. It's not a brand new car I'm going for, it would be a 2004/2005 model.