loan advise

craigeastlondon

hi peeps , i need to get a loan for around £5000 to buy a car as the family is relocating to live with the in-laws so we can save for a mortgage, so i will now be traveling to work and need a car that i know will be reliable , i've completed an iva in October 2011 , now i expect to pay high apr due to me being stupid with my money when i was younger but having a family was what wised me up and put me in the iva to put things right , im after advise of who to use as im hoping to try and get a mortgage next year to 18months , i have a little money saved but thats to pay for the items in our rented home to be moved and put in to storage while living with the in-laws, i was thinking more of a loan than a car finance as i would prefer to be able to change cars when we get our own home but if needs must car finance is an option
thanks for your help and advise

gb12345

craigeastlondon wrote: »

hi peeps , i need to get a loan for around £5000 to buy a car as the family is relocating to live with the in-laws so we can save for a mortgage, so i will now be traveling to work and need a car that i know will be reliable , i've completed an iva in October 2011 , now i expect to pay high apr due to me being stupid with my money when i was younger but having a family was what wised me up and put me in the iva to put things right , im after advise of who to use as im hoping to try and get a mortgage next year to 18months , i have a little money saved but thats to pay for the items in our rented home to be moved and put in to storage while living with the in-laws, i was thinking more of a loan than a car finance as i would prefer to be able to change cars when we get our own home but if needs must car finance is an option
thanks for your help and advise

The IVA will count against you as that (and possibly any defaults/CCJs you got when you were younger) will be on your credit history.

How much do you earn (gross), do you have any other credit and are you currently on the Register of Electors

craigeastlondon

thanks for the reply , i understand the iva will make it hard hence i expect high apr , my gross is £40000 a year , I've got an account with experian to see and understand my credit history , I've only got one default on my file that will drop off on june 10th this year , I've got credit cards to help rebuild my credit history and show that i can be trusted with credit , my credit score is 945 out of 999 , I'm on the voters roll and complete straight with everything as theres no point lying , were moving at the end of july to the in-laws and can only save a little till then which wont give me enough to get a car , im happy to wait till the default drops off but thats about as long as i want to wait as i don't want to be sorting a car out as the same time as the move as i think it will be to much ,

gb12345

Salary wise, you should have no trouble getting a 5k loan - your main problem will be your credit history.

The best thing to do would probably to try applying with the Nationwide as they do a "soft search" on your credit file, which means that it doesn't show up to other lenders. That will give you an idea of if you will be accepted and likely APRs. Or you could try talking to your own bank and see what they say - they will have the benefit of seeing the way you now manage your accounts.

What you mustn't do is go around randomly applying for loans as each one will show on your credit history and worsen your chances (or you'll end up getting scammed by a "loan broker").

craigeastlondon

thanks for the advise i thought about my bank do you think it would be better to see them in person or do you think it will still be the same out come if i do it online ? I've yet to apply for a loan just working out wheres best to go, thanks for your time and help

gb12345

craigeastlondon wrote: »

thanks for the advise i thought about my bank do you think it would be better to see them in person or do you think it will still be the same out come if i do it online ? I've yet to apply for a loan just working out wheres best to go, thanks for your time and help

Doing it online will mean that they probably just treat you "as a number", so if you can do it in person it would be better as you might be able to get a human to make a decision.

craigeastlondon

gb12345 wrote: »

Doing it online will mean that they probably just treat you "as a number", so if you can do it in person it would be better as you might be able to get a human to make a decision.

i would like to give you a big thank you gb12345 , i went into see my bank today and to my amazement they gave me the loan that i was after at a very good rate , they also gave me a credit card with 0% balance transfer and much lower apr than my other ones which means my hard work has paid off on building my credit , you advice was very helpful next step is to and get a mortgage by the end of 2014 many thanks

debtcutter

What rate did you get on the loan, out of interest?

craigeastlondon

Loan apr was 13.9% big drop as they first said 22.9% and the other places wanted 26.9% min ,

debtcutter

craigeastlondon wrote: »

Loan apr was 13.9% big drop as they first said 22.9% and the other places wanted 26.9% min ,

Nice. If you got a 0% card out of it as well, it sounds like you've done alright! :T