HP question

xsupercarlx

When applying for a HP loan, are your chances of being successful increased if the deposit is larger or does it not make a difference.

With it being a secured loan, I would have though that a 5k loan for a 7k car (say you paid a 2k deposit) would be more attractive to a lender.

xsupercarlx

Does anybody know?

BugsyBrowne

xsupercarlx wrote: »

Does anybody know?

It all depends on your credit rating and what HP company you're using as a big deposit is fine but having a good credit history is more important.

So basically if you've a dodgy credit rating then a big deposit could sway in your favour depending on outstanding balance but with a good credit rating a deposit won't be needed.

xsupercarlx

BugsyBrowne wrote: »

It all depends on your credit rating and what HP company you're using as a big deposit is fine but having a good credit history is more important.

So basically if you've a dodgy credit rating then a big deposit could sway in your favour depending on outstanding balance but with a good credit rating a deposit won't be needed.

Thank you for answering, my situation, I have an O/D (never gone over the limit) and the usual mobile and internet bills and a Next catalogue, thats about it for credit as I've never had a need for credit cards.

SeanG79

The deposit doesn't make too much difference with high street/"prime" lenders, but will become more important with weaker credit covenants...