Why cant i get a loan!

demontfort

A kid earning a pocket money salary spends £1300 on a TV and wants to spend £11k on a car, why would you chose to wreck your finances buying things you can't afford and don't need! My dad earns nearly £100k and has a lot of savings yet buys his TV from Cash Converters and agonised long and hard about spending £6k on a secondhand car (yes he is a bit tight).

Also to put this in perspective I saved up carefully from when I was a kid and it took me until my early twenties to build up at least £10k in savings. So now this lad want to go and blow £11k of somebody else's money on a set of wheels in the blink of an eye.

Reading posts like this make me realise why the country is in such a mess. Everyone is just so used to easy credit and have this sickening sense of entitlement when it comes to borrowing. 0% credit cards, Store Cards, Jumbo Loans, 90-95% mortgages they should just scrap the lot of them, in the long run we'd doing people a favour. You only have to read these board to realise that. People should learn to live within their means and when it comes to luxuries you should work hard, save up and go without until you can really afford it. Remember.......

CREDIT IS A PRIVILEGE NOT A RIGHT

poppasmurf_bewdley

crackster wrote: »

there must be something i can do how do people get loans these days with out begin rich to start with if i was on 38k a year i wouldn't need a loan...lol

The simple answer is: They don't. People like you, and many in better circumstances, are being turned down for loans every day. By the thousand. Banks just aren't lending to anything that is anything less than copper bottom guaranteed. Why should they risk £11k with you when they can lend it to someone who will put up security and they know they will get their money back if anything goes wrong?

I have £x amount of savings with my bank, but I doubt they would give me a loan for half that amount simply because my only income now is my private pension, and my only debt is about £150 for something I bought on my credit card last week. It is that tight.

_Andy_

Sounds like such a sensible plan.

Caz3121

How much do you currently save per month.
If you have no savings and had to use wonga for whatever reason it will look to lenders as if you will not have the money to pay them each month

Will you be planning on living rent free with your parents for the next 5 years? You may find in 2-3 years time you want to move out, you have a dream car that is worth less than you have outstanding on finance and running costs mean you can't afford to do anything with your life

gb12345

Caz3121 wrote: »

had to use wonga for whatever reason it will look to lenders as if you will not have the money to pay them each month

Not only did he use wonga, but he wasn't able to repay them on time due to overtime and hours being cut.

Rather questions whether he is capable of committing to paying 200 quid every month for 5 years.

Apples2

Over £200 for five years is easy but a payday loan for one single commitment only a couple of weeks later was a bridge to far?

OP has zero outgoings but still failed with that one simple task.

Seriously op, forget borrowing until you learn how to manage money. That includes having lots of outgoings, that day is surely coming unless you will spend a lifetime being looked after by mum.

Gentoo365

You are going straight from payday loans to a £10k unsecured loan.

I think that is one of the issues. You need to build up a history of using credit. Maybe lending a few thousand and getting a cheaper car first.

Once you have shown that you can handle smaller loans you will be able to then get larger ones.

One option (which I do not recommend, but will mention anyway) is to look for specific car finance where the loan is secured on the car. I know nothing about this (especially for 2nd hand cars) so cannot really comment.

barbarawright

Caz3121 wrote: »

How much do you currently save per month.
If you have no savings and had to use wonga for whatever reason it will look to lenders as if you will not have the money to pay them each month

Will you be planning on living rent free with your parents for the next 5 years? You may find in 2-3 years time you want to move out, you have a dream car that is worth less than you have outstanding on finance and running costs mean you can't afford to do anything with your life

One word of caution if you want a fancy car to impress the ladees - a BMW parked in mum's drive is no aphrodisiac.

NorthernSilver

demontfort wrote: »

CREDIT IS A PRIVILEGE NOT A RIGHT

Credit is servitude and shackles to the system.

opinions4u

Car loan over 5 years will upset many credit scoring systems.

They tend to prefer 4 years or less.