Advice on applying for a loan?

Moshpot

Hello Everyone,

I am new here so please be gentle

Basically we need to get a new car quite urgently as ours is on itss last legs (one of our children has problems getting around). I have some money available towards but could do with another 2-3 K to get the sort of car we are after.

Now normal car finance is a no go for us I believe, as I cannot drive (medical) but my husband is a full time stay at home dad, so is not in employment.

So I am thinking about getting a loan, on a 2-3 year term, although ideally one without harsh early payment charges as would aim to clear quicker.

However I would like some advice to see if I would be able to get one. Rough situation is: I am full time employed, with current employer for 2.5 years and annual salary is £20K, we also receive tax credits and my daughters DLA on top. My take home salary, tax credits, DLA and everything else means I get around £2900 into my bank account each month , into my bank account.

As for credit past I have never paid late or missed payments or anything. Total available credit available to me is £15 K (couple of cards and a catalogue account). Out of these the total balances are currently £2,800 (which should be cleared in the next 6 months). I don't really want to use card for car as would hope to get a better interest rate.

We are not home owners, renting, have lived in this house for nearly three years and had 6 years in previous address. I am on electoral roll here and previous house.

So questions are:

1. Would the available credit and current balances stop me getting a loan?

2. Do I declare just salary as income or all of the incomes?

3. Any other smart ideas for helping us get a car ( we can't really wait until we have saved although could do this fairly swiftly )

Thanks for any advice anyone has

kloana

Moshpot wrote: »

1. Would the available credit and current balances stop me getting a loan?

Your debt is not massively high. Whilst there is often some talk about a large amount of available credit being bad, it can also look good (just the very fact that you haven't used it!). Impossible to give a definitive yes/no though, as to chances of acceptance. Other things to consider would be the likes of income (which you've included), and outgoings, which your lender will ask about. If your outgoings are very high in relation to your income (i.e. little or nothing left to repay any loan), then the answer is likely to be 'no'

2. Do I declare just salary as income or all of the incomes?

Different lenders will ask different questions - which will be clear on the application form. Some will just ask for income (all combined), some just for salary, and some will ask for a breakdown of salary, benefits, other, etc.

3. Any other smart ideas for helping us get a car ( we can't really wait until we have saved although could do this fairly swiftly )

I take it your daughter is not in receipt of HRM DLA?

Also, do you have someone 'in the know' who can shop around with you? Perhaps the money you have already may be enough for a reliable runner.

[Deleted User]

if dd gets higher rate mobility dla swap it for a motability car

ch3101

Most lenders will accept most incomes.

As main income though they'd only take salary and DLA, but then additional income would add in tax credits, child benefit etc...

As stated before you haven't used very much credit at all, and your homeowner status shouldnt stop you getting a loan either, it just might be more difficult to get a headline rate.

debtcutter

If you have a good, sensible history of using credit cards (by the sounds of it, you've done fine so far) then you may be able to get a 0% on purchases credit card rate.

I know you said you hope to get a better int rate than a credit card, but if you can get 0% on purchases, it doesn't get much lower than that!

ch3101

Pretty sure Tesco are doing a 0% for 16 months card, that may be one of your better options?