Does it make a difference speaking to the bank manager?

sorken

Hi Everyone,

My partner is trying to apply for a £4000 loan for a car. For the last few years we have bought cars at a couple of grand only for them to have constant problems and eventually fall apart. As I'm expecting we would really like something more reliable and will last a bit longer. Plus we cant afford to buy a car outright again.

Anyway he got declined by his bank over the phone last night and I was just wondering if it would make a difference going into the bank and speaking to the manager?

He makes around £21000 a year. He is on the electrol role and has also got a next account that he pays on time although he has only had this for 4 months.

Is it true that we may have a better chance getting car finance through a car dealer, could this be an option to try?

[Deleted User]

Unlikely. The lending process is very automated.

Car finance would gernerally be easier, as the loan is secured on the car, so they can pop along to your house and take it back if you start missing payments, meaning they get at least some of their money back.

sorken

Ok thanks for the reply.

As I said he's only had the next account for 4 months, his credit score is only at fair at the moment. Does anyone know how long he needs to be paying this back for his credit score to start going up?

[Deleted User]

I'd recommend he gets a credit card and uses that on a regular basis (paying off in full each month). That will help his rating more than a Next account.

sorken

Sorry I dont know much about credit cards.

Are they hard to get and could you use one to pay for a car?

davey_b

Careful with the credit card option as yes it does improve your credit profile but in my experience you have to be very strong willed not to spend spend spend. You should be able to get a good finance deal from the car dealer and this will be easier to obtain....Make sure you find out the APR rate as dealers like to quote the flat rate and never except the first credit terms or the first price for the vehicle.

Tixy

If he hasn't had a card before then he'll need to be looking at subprime cards - these have low limits and high APRs. Not suitable to buy a car.

If he gets one he needs to think of it as a credit building tool only.

Buy a couple of things on it each month, and set up a direct debit to pay in full each month. That way he won't be charged any interest, but will improve his credit rating.

CLAPTON

We don't know your full circumstances but if you are expecting a child is this the best time to go into debt?

sorken

No its not ideal to be going into debt, but we have no other options. We live in a remote area and need a car.

I would rather have the security of transport if ever there is an emergency than be stuck in the middle of nowhere with no help!

DCFC79

You must be buying the wrong car for £2k if they eventually fall apart, I know 2 people who have bought cars for under £2k and are still going.

sorken

Thanks for the replies so far everyone.

So I've been looking a bit more into car finance and I see there is companies like creditplus and carloan4u that offer finance, they seem to have good reviews online, does anyone know if this is the case?

I've noticed the odd person say your just as well doing the finance direct from the dealer and may also get a better deal doing it this way...? Would this be a better option? And could you be just as successful going direct with the dealer if you've only got a fair credit score?

Thanks for any advice