3k Loan for 20 year old

LeeGolding

Hi friends,

I am trying to get a loan for my 20 year old girlfriend. I tried Zopa and they declined online with no reason. Tried Abbey and have had no reply whatsoever.

She only wants £3000 to buy her first car.

She doesn't have a poor credit rating, no credit cards, living with parents, earns £12k per annum. The only minor problem is that her place of work has no land line so we cant put a landline in for applications, only a works mobile. Her work address is perfectly valid of course.

What lender can I go to with the best rates for younger people?

Thanks

Lee.

rsykes2000

Lack of credit is a very common reason for refusals, mainly because companies can't see how you conduct credit accounts so it makes it harder to get credit if you have none. Is she on the electoral roll ? If not, this will be a reason for refusal as well.

floyd

I had this problem trying to get my first (and only) credit card. No credit history, no credit so I had to get an Argos store card, buy something smallish on it and pay it off in installments then I had companies offering me credit left right and center!

tripled

She has quite a low income and if she doesn't have much credit history will find it hard to get a loan. Why not try for a smaller amount? In fact, is spending 3-4 months wages on a car, not even counting insurance, mot, maitenance, etc really necessary anyway?

[Deleted User]

Why not wait 3-6 months and save it up. If she has lived 20 years without a car I very much doubt hell will freeze over to wait a bit longer.

This buy now mentality isnt worth it trust me. Do you NEED it or do you WANT it! cars are not investments they depreciate like a rock, you get ripped by dealers and they need about 2K+ per year to run them.

Guess how much my car cost me - £600 it does 60mpg and is in A1 condition a 1995 corsa diesel. I used to own a ferrari 355 that my dad gave me for graduating, but I grew up, sold it for for 40K to buy a house. Obviously there is some mickey taking from mates who are wandering about in sports cars but who cares, they are in alot more debt then me and I can see a few of them as being in serious trouble.

BenL

Does your g/f bank with Abbey??

If not try her bank, rates might be higher but she will have some history with them and chances are they will have scored her for upgrades and additional products already.

I used to work for Abbey and could see on the customer db how much loans people were pre-approved for, CC possible limits, overdrafts etc that customers could get easily.

[Deleted User]

rates will be up at 20%+ for a small loan less then 7.5k without much credit history.

how about i loan it to her and get 20% APR, seems fair enough to me, make me rich!

gastfo

Hi Lee,

I agree with the previous posts. It's all about want's and need's and after
we have what we want and are dearly paying for it, we sometimes wish we hadn't.
I read somewhere a car should never cost more that 2months income and my Mondeo has not even cost me 1 months worth, is in great shape and looked after.

Have you checked your girlfriends credit rating?
I had no credit record when I returned to England in 2003 so I had to establish a record. I would recommend applying for a low rating approved credit card and to pay off in full every month. Argos card is a good idea and maybe you should apply for a credit score. Find out where you are.
Zopa will only lend to A+ to B credit scores meaning mostly people that don't need a loan, LOL

Has her bank account got an overdraft? Why has her employer only got a mobile phone? How long has she been in employment? Checking this would help and get her established.

Try it, but please don't go for a high APR loan just to get what you want, the pitfalls are too big.