Taking out a loan at 21 with fair credit rating

JoshB1990

Hi i am currently after a loan to buy a car, i have had 2 loans in the past first one being with a high interest company second one with my bank. I paid off both loans half way through each of there terms and never missed any payments but when i paid off the one at santander i applied for a new loan of £12000 and was declined, i have been employed with the same company for the past 5 years and currently earn £32000 a year on my night rate but £24000if not taking shift pay into account. Since then i have checked my credit rating n wasn't on the electoral register so i have registered and am back on it. Once the loan is shown as settled i should have a fair to good credit rating. Could anyone give me any advice on which company would best suit my criteria as i don't want to apply at too many places as this will go against me. Any help would beideal thanks.

DomRavioli

Noone will will offer you 12k, that is half your standard income per year, regardless of credit rating. the only place which may do is your bank, but even then 50% of income is never going to happen. If its for a car, go through a dealership finance, that is the only way you may be able to get a loan for a car, or perhaps buy a car you can afford.

JoshB1990

What about say £10000 i do want it over 5 years and am willing to pay up to £300 a month? And to get finance i heard you stand a lot better chance if you put a deposit down, if this is the case wot sort of deposit do they look for? Thanks

DCFC79

So your 21 and have been with the mployer since you were 16 and you earn £24k / £32k.

Why can you not save the cash since you earn so much.

JoshB1990

Sorry i forgot to mention the first 4 years was an apprenticeship so didn't earn a great deal been on the higher pay for almost a year.

AdamMc90

I'm 21 earning around £26500 a year basic, and got rejected a loan from Sainsburys (market leader) but got accepted for a £6k loan with my bank (natwest). I think the best bet is going to your own bank for the loan but 12k seems a lot. Is it for a car? I'd suggest the boring option of saving as much as you can first and loaning the rest

DomRavioli

It begs the question why do you need a 12k car? Why not buy a cheaper car, because you'll be lucky to get 5k. The deposit needed in a dealership is anywhere from 30% to 70% of the value of the car.

JoshB1990

Well i loaned £6k in September from the bank and paid that off in full so why would i be lucky to only get 5k?

DomRavioli

Because of your income, most lenders will do about 25%, depends on the institution. You still havent said why you need a 12k car, perhaps look at something in your price bracket.