Advice on a personal loan

Abe130

Hi guys,

I wanted to ask your advice before applying for any form of loan and having the credit check on my file.

I recently checked my credit score on experian and it returned a score of 720, I have a CCJ satisfied in april of this year for £335 and 3 previous defaults dating back to my time at university which are now all satisfied.

Since checking this and having been in a stable job with an income of £17,000 for the past 13 months I am now looking to borrow £6,000 for a new car.

I decided to be pro-active in regards to my credit score and have taken out a credit card with the intentions of paying off in full every month arount 10% of the available credit. however since taking this out my score has reduced to 656 on experian.

What I am asking is before I apply for any type of loan (and risk being refused credit which will further reduce my credit score) I am looking for any advise as to what chance of success my application for the loan has at present?

Im looking to repay over 4-5 years (paying around £160 -£180 a month) as this is the value of my recent pay increase.

Is it worth applying for a loan and risking being refused now? or is it better to let my credit score increase slightly first? or am I wasting my time without a hope of getting one with my CCJ and previous late payments?

P.s it is also showing on my credit file I have 0 late payments within the last 12 months.

Any advise would be great

Mara69

One CCJ and 3 defaults means you are extremely unlikely to get a loan of any description - much less one that a third of your (pre-tax?) salary.

My advice is for you to stop applying and start saving.

DCFC79

As to your chances i dont think no can tell you if you will get the loan or not. Whats the limit on the cc ?
Whos your bank ? as generally i your own bank wont lend to you the no 1 will.
You tried nationwide soft loan search to see what you could be looking at ?

Oh and the credit score is worthless, i hope you went for the £2 stat report.

Abe130

I have not applied for a loan with anyone as of yet.

I took out a basic card with capital 1 with just a £500 credit limit as its only purpose was to improve my credit score and pay off in full each month.

I currently Bank with HSBC and have done for approx the last 10 years. I will look into nationwide soft loans too as I have been considering switching my current account also.

Abe130

I just checked and you cant apply for a loan with nationwide if you currently have a CCJ on file :S

DCFC79

Abe130 wrote: »

I have not applied for a loan with anyone as of yet.

I took out a basic card with capital 1 with just a £500 credit limit as its only purpose was to improve my credit score and pay off in full each month.

I currently Bank with HSBC and have done for approx the last 10 years. I will look into nationwide soft loans too as I have been considering switching my current account also.

Try your bank, maybe going in to speak to them will be best, they know your finances better than anyone but its no guarantee you will get a loan.

somethingcorporate

No chance, sorry.

You have shown yourself to be extremely unreliable with money, no-one will give you a loan for £6k on your current salary.

SeanG79

The credit score means little, each lender have their own "scoring" methods.

When was the CCJ lodged and how soon after was it satisfied? Was it related to a "loan" type of agreement?

The 3 defaults, how long ago were they picked up and how soon after were they settled?

What is the price of the car in comparison to the £6k advance?

Abe130

The CCJ was lodges on 03/01/2012 and satisfied on 24/04/2012 it was relating to a 'credit sale'

And all 3 defaults were settled within 3 months of them becoming 'default'

The £6k is the same price as the car, I am looking to buy private rather than enter a finance agreement with a motor trader.

SeanG79

You will need to approach your bank for a personal loan. From what you have said I doubt that would be approved.

Besides a personal loan, to raise vehicle finance for a vehicle purchased from a private seller, will be charged at a premium IF you can even find a lender to agree.

Most "reputable" lenders will insist the vehicle is purchased from a dealer with a valid consumer credit license for them to consider the lend.

Abe130

Thanks for your advice guys I think my best option at this point would be to have a visit to the bank and go in with an open mind.

If I am not approved my best course of action is just to save my funds while activly trying to improve on my current credit score.