loan advice

JChaps86

Hi, I'm new to the forums and have just joined wanting advice.

Up until the beginning of last year I had never had any credit. I went to my local O2 store to get myself a sim only contract and was refused on the grounds of bad credit history.

I went to Santander and got myself a credit card with no problems and have never missed a payment since. I actually pay more than minimum payments every month. Went bacK to O2 and got my sim. Never missed a payment.

Now this weeK the gearbox in my car went and as it's an banger it's not really worth fixing.

I first went to carcraft and after 8 hours of bartering and nagging we had finance in place for a Meriva which i then decided I didnt want enough to justify the 120 pm cost. The did find a finance company willing to fund the purchase though!

I decided I needed a cheaper option and found a £3,000 car from a local dealer but as it's and oldish car and cheap, finance wasn't really an option.

I paid a deposit and thought I'd go to Santander and get a loan and pay for my car, no problem! Wrong! Santander won't give me a loan and neither will Tesco BanK. Both citing a low credit score as the reason.

I earn £13000 a year and have low outgoings, I'm in a steady job and have no oustanding debts as far as Im aware.

Can anyone shed any light on why I cant get a loan and more importantly can anyone advise me on how to secure the money for my car ASAP?

Any replies are greaty welcomed!

Cheers!

John

Apples2

You're making a few mistakes here,

1. Carcraft - great dodge on that one. You should be celebrating. The car would have cost an absolute fortune. The car they sold you would've been long gone before you finished paying.

2. Committing to a car purchase without having any money! That's madness.

Do you have family who could help you out? Not that I think it's a good idea but a way forward nonetheless.
As its a small local garage you may just have to pull out, once you explain why the dealer will know it is not worth pursuing.

If your own bank reject you, it is unlikely you will get a loan. You could try nationwide who will do a soft search on you. That would give a quick and easy idea if they will accept you.

_Andy_

I'm genuinely curious - you spent EIGHT hours there? Really? Did you take a lunch break?

Mfox2012

It depends are you on electoral register ? have you checked your credit score. You say you have a credit card what is your limit and how much of it are you using. Basically if you are using most of your credit limit and had a few searches done recently by car finance companies, then this can look like a lot of searches, and using most of your avaliable credit as you only have the card. Then an additional search from the bank this all brings the score down. What age are you also do you have a few years history or what. All these things are taken into account not just if you pay on time. Mabye see if perhpas your mum or dad could get loan for you and you pay the payments back perhaps. If the bank who see your wages going in have said no i think you are going to find it hard just now. Other option is if you can do without for 6 months. Make more payments to CC etc and no more credit searches and try again. And like other poster said try the nationwide soft search gives you a good indication of rate etc

JChaps86

Yes a full 8 hours! They were reay going for the hard sell! I didn't have a dinner brea and was getting very grumpy! By the time I left I had been offered a 10 pate Chevrolet Aleos with a 8999 window price for 107 per month over 5 years pus my old goosed car as a deposit. It was quite cheap when you consider over 2000 of the price was finance costs.

But I changed my mind as I felt i was setting for a car that wasn't ideal.

When I say ive committed to but the car, I mean I've told the dealer I want it and left a £100 deposit. I explained when i said i wanted it that it was dependant on me securing finance (That i didn't thin was going to be this hard!).

It shoulb be noted that I need a car for work and without it i could be jobless. I havent got the hard cash to repair mine or replace it with something cheap either .

What about credit cards? If i coud get 2 with a limit of 1200 i'd be covered but they'd iey be high interest woudn't they?

I'm very stressed with a this!
TY

stephane_2

The problem is that you've been making application all over the place & that will show on your credit report.
As for the credit cards, considering you've never had one before then I doubt very much that you'll get one with a limit of £1200 yet alone 2 is extremely unlikely....but you can always try.

Apples2

They would both be high interest, you would also have another fee on top for paying with a credit card. Even a cash advance would cost a small fortune.

No chance you would get a 0% card, even if you did the limit would be low.

Get another banger for a few hundred and open a savings account. This little surprise you are facing now will be repeated many times throughout your life, the sooner you prepare for it the better.

JChaps86

I'm 26, don't thin I'm on the electoral register and have ony had a credit history for the last 12 months. Before then I never spent what i didn't have and paid for everything in cash. My card is 2500 and its up to 2300. I haven't viewed my credit score, how woud i do that?

catwoman73

OP. Don't buy a car from Carcraft. They're massively overpriced and their finance is a rip-off. Have a look at https://www.parkers.co.uk to see what cars are really worth.

If you earn £13k per year and have low outgoings, don't you have some savings that you could buy a car with?

How far away is your job and could you cycle there or move within cycling distance? Unless you either live with your parents or a well paid partner, it will be difficult to afford to run a car on £13k per year. You will be a lot better off in the long term if you could manage without one.

Apples2

It doesn't look good when in the last 12 months you have spent £2,300 more than you have earned.
It isn't too late to turn this around, forget about a car and use the bus, clear the credit card (they are a ball and chain, not a good thing at all) and build some savings.

JChaps86

I'm a father of 2 and need my car for work (I visit clients regularly). I've always afforded a car in the past despite lower earnings and higher insurance. I don't have any savings as any parent will know any disposable income goes quickly! I can afford £100 per month loan repayments but need to find a lender, just done a credit check and my score is very low 543. Quite frustrating considering I've spent my life avoiding debt and I only got a creidt card last year to improve my credit rating.