Loan suitability

dstev

I am thinking of taking out a loan to pay for a new car. Don't fancy getting car dealership finance as it is just too expensive.

Here is my history and current status:

• Earning approximately £35k a year (I say approximately as I get paid £31k flat with bonuses that are not hard to achieve and I have come out with about £35k for the last 2 years)
• I have one credit card with M&S that has a £4000 credit limit and £0 balance. I also had one recently closed credit card account with Tesco with a limit of £4500.
• I currently have 2 loans I am paying and one that I am in the process of paying off.
• One loan has an outstanding balance of £10,455 at £158 per month. This was to pay for our upcoming wedding.
• One loan has an outstanding balance of £4,700 at £102 per month. This loan was for my fiance's new car as she could not get a loan herself has she had no credit history (which I wish I hadn't done now!)
• Other outgoings are £480 per month mortgage and £75 a month Sky bill and not a lot else as my fiance pays the utility bills and council tax.

I have just finished paying off a loan at £255 per month.

I would like to apply for a £15,000 over 60 months at £286 per month with Tesco.

My Experian credit rating is 947 that will rise as it hasn't taken in to account the end of the loan and closing of credit card account (I wouldn't apply until this goes on my history)

I have never missed a loan or mortgage payment and had only 1 late credit card payment ever due to forgetfulness more than anything else!

How do you think my chances are of being accepted? If you look at it logically it is obvious I can pay the loan off as I have just finished paying a similar loan off and my circumstances have not changed.

One other thing to note is that I work for Tesco. Do you think this may this help my application?

Any helpful comments appreciated.

Thanks, Dave.

Sparx

Do you not get preferential rates/deals with Tesco Bank as they are your employer? Well under the same group anyway.

dstev

Sparx wrote: »

Do you not get preferential rates/deals with Tesco Bank as they are your employer? Well under the same group anyway.

Not that I know of but I'll ring and check anyway.

Not sure I can ask for any less than 5.2%! I'd take a better chance of being accpeted though.

TadleyBaggie

I'd say you have no chance, you currently have around £15K debts and want to add another £15K. On a basic £31K that would be seen by lenders to be unsustainable.

dstev

TadleyBaggie wrote: »

I'd say you have no chance, you currently have around £15K debts and want to add another £15K. On a basic £31K that would be seen by lenders to be unsustainable.

This my fear.

If anybody with half a brain cell looked at it then it would be obvious I was a very minimal risk however due to it being calculated by a programmed set of rules then I think I may be unsuccessful.

Treadmill

Do you really want to be paying a total of £546 per month in loans ? A 15k car on a basic salary of £31k seems a bit OTT to me, that aside though it is your decision.

Maybe try a company like Nationwide first that does a soft search that won't affect your credit file just to see if they approve in principal, you don't have to take he loan but it would be a good indicator. As far as working for Tesco is concerned I can't see that having any bearing on the decision.

Curr946

well you wont know until you try. Just to note, they may accept you but at a higher rate.

stephane_2

Just buy a cheaper car.....

R_P_W

You see yourself as low risk? What would you do if you lost your job? Do you have savings to live off for 3-6 months until you found another job?

What you are suggesting sounds insane to me.

Apples2

dstev wrote: »

If anybody with half a brain cell looked at it then it would be obvious I was a very minimal risk .

How on earth do you see it like that?
You have a life on credit, over £10k for a wedding (let's not go there) along with another £4k for a car leaves you £15 thousand pounds away from having Zero.

You've just cleared one loan but are now looking to saddle yourself with a HUGE financial burden for the next 5 years.

In my eyes you are a huge risk, without even considering your missed payment marker.

Treadmill

The only people Apples2 thinks should get credit are people that can afford to buy the item cash...