Car Loan help

vikster2_2000

Hi all,

I just need some help, I have a bit of a dilemma. I would like a new car (ideally but would settle for a decent second hand car) as I travel a far way each day for work.

I have a fair credit score with Experien (which I know is just their tool to give me guidance on how I score and lenders do not see this), so I applied for car finance. Which was declined, the reason being because of some information on my credit report.

I think this is due to being in default over an overdraft with a bank which I have been paying off each month for over 2 years. This default is actually in dispute due to certain reasons. However until it's resolved I will have problems getting finance even for a second hand car.

I'm trying to be realistic and reasonable with my money, so that if in 6 months time my car fails miserably it's MOT (very likely) I can apply and hopefully be accepted for a small loan to contribute to buying a second hand car.
I know until the default is sorted I will have trouble with finance, but I want to know if there's something I can do in the mean time to improve my credit rating so that if I apply for a small loan in a few months I am less likely to be rejected or have a horrendous APR that a £1.5K loan will cost me £5K.
I don't want to apply for a credit card for bad credit unless I am sure I am likely to be accepted so that the amount of searches for credit are very few.

Any advice would be greatly appreciated as I feel like I'm stuck being "rejected" and will be for a few more years.

Thank you in advance

[Deleted User]

One search won't harm, particularly not 6 months before a loan application.

Have a stab at aqua or vanquis etc. If you get it, remember to use it wisely.

vikster2_2000

I have had a recent search already, so this one for a credit card would be a second, I just didn't know if that would greatly effect my chances either.

Trust me I would use it wisely and make sure I'll pay it off each month. I just wasn't sure if getting a prepaid credit card would be beneficial or not as a credit search is not done, and although there is a price involved it's a small price to pay to build up your credit report without risking a search.

I just want to make sure I put myself in the most attractive light so that if I do apply for finance I am more likely be acceptable.

[Deleted User]

I wouldn't worry about one more search. Aim low if you're worried, so you have a greater chance of getting it - eg Vanquis.