Loan Applications - credit scores

BigCroyd

Hi,

We are looking at applying for a loan for around £10,000 for a new car. We have read various articles about the dangers of representative APRs. We would like to apply for the loan with several different providers to get the best rate. My questions are:

1) Will applying for several loans have a negative effect on my credit score?

2) If the loan is approved, will I get a chance to see what the APR rate is before I accept the loan?

3) If the answer to question 2 is no, can I cancel the loan and will this also affect my credit score negatively?

Kind Regards

BC

Apples2

It's all bad sadly.

1. Any more searches than 2 in less than 3 months is likely to diminish your chances of acceptance and/or push the rate they offer you upwards.

2. You won't know the Apr until they accept your application. A full credit search will have already been undertaken. They will then offer you the loan, it is up to you if you take them up on their offer.

3. You don't have to take it but bear in mind that a search has been conducted (refer to answer 1 above)


Be careful of dealer finance, they talk about low interest rates but they are talking about flat rate which is half the Apr.

DCFC79

BigCroyd wrote: »

Hi,

We are looking at applying for a loan for around £10,000 for a new car. We have read various articles about the dangers of representative APRs. We would like to apply for the loan with several different providers to get the best rate. My questions are:

1) Will applying for several loans have a negative effect on my credit score?

2) If the loan is approved, will I get a chance to see what the APR rate is before I accept the loan?

3) If the answer to question 2 is no, can I cancel the loan and will this also affect my credit score negatively?

Kind Regards

BC

10k for a new car is an odscene amount, you thought about nearly new or used car of a year old ? You might be able to save money otherwise.

iolanthe07

10k for a new car is an obscene amount,

No -it really isn't these days.In fact you will only get a fairly basic new car for 10 grand.

izools

You should go via Nationwide -

They will perform a "Soft search" on your credit file and provide a real-life quote, the actual apr that you will get, based on your information and credit score, but they do this via a soft search on your credit file that other lenders can't see, so your credit score won't be affected.

Good luck!

DCFC79

iolanthe07 wrote: »

10k for a new car is an obscene amount,

No -it really isn't these days.In fact you will only get a fairly basic new car for 10 grand.

Maybe you have a point, just seems a lot to spend, haven't looked for a while either.

izools

DCFC79 wrote: »

Maybe you have a point, just seems a lot to spend, haven't looked for a while either.

I agree, and I don't like new cars anyway.

They're all so limp wristed and have far too much to go wrong.

I've owned three BMW E-39 5-Series' - first one the gearbox went, garages fault for using wrong hydraulic fluid. Second one mother has and bloody loves it, although just had its first MOT Failure at 11 years of age and 100,000 miles. Drop links. I blame the speed bumps around where she lives rather than the car

Only £100 to fix anyway.

My current one is a 530d M-Sport.

£4,000 (just bought it), tight as a nut and the best all round car I've ever owned. It was £45,000 new and feels like a £45,000 car to this day.

If it ever becomes uneconomical to repair I'll just get another E39. IMHO best car ever made.