Loan question - help

leedb

Hi all

Urgently need to get a new car as old one has died.

Need to get a loan to do it. Have another existing loan, and some card debt - not major amounts in either case.

Tried to get a new 0% credit card deal about 3 or 4 months ago, but got declined as had gone over my card limit at the time (the monthly interest sent me over and I got back under within days and not been over since).

Am I likely to face problems getting a loan? If so, which lenders are better to try.

Thanks.

Lee

leedb

Hi all

Any comments welcome on this, thanks.

lee

leedb

Hi all

Would really appreciate any advice/opinions on this.

Thanks

Lee

CLAPTON

the sort of factors that lenders take into consideration are

your income
your age
whether you are emplyed or self employed
how long you have been in that employment
you current level of debts
whether you are renting or buying or living with parents
how long you have been at your current address
whether you are on the electoral roll
what your credit record says
and a few other things.

leedb

Thanks Clapton

I was thinking more in terms of how much that rejection 4 months ago would affect me.

Also, and I don't know again if there is answer here, in general what % of your income do lenders consider "safe" in terms of paying debt? What I mean is if card payment + loan payment + morgage = x% of salary each month, at what % do they think, er no?

Thanks

ravo_80

Lee,

Just a couple of comments regarding your need for a car loan:

1. Have a look and see how much debt you are in already, can you really afford to take on the loan, no matter if the bank will lend you one or not.
2. Do you really, really need the car? When you look at running costs, petrol, insurance, tax, mot, wear and tear, loan interest payback it is a costly sum! Would public transport or car pooling be another option?
3. In the MSE book of Martins it does say that your credit rating is set by your current cards, loans, ccj's and also missed payments or rejections. So it may be that it will affect your application still.
4. How 'dead' is your other car? Would the garage bill not be a cheaper option than a whole new car? At least you'll have some guarantee from the repair.
5. Was the original loan for the car that has died? If so just think about putting yourself into another agreement just to have another car die and be even further up the proverbial creek!

I reckon that if you saved the money you would otherwise have spent on the car and loan for a couple of months, then you would at least have enough for a 'cheap' but decent car and just think, it would be paid for by your hard earned cash and not by the bank. Then carry on saving the amount you would have put into a loan and pay it off your cards and other loan. Then when that gets paid off, put ALL the money you would have been paying for the 2 loans and the cards into a savings account (or off your mortgage if its a high rate) and pay off your mortgage. Then save all that money up and you will never need to worry about your banks decission, they'll probably be phoning you up asking you to invest in their product!
Look at everything else you spend too and see if you can make savings there, or are you due some cash back from overpaying your utility bills?

I'm not just making this up, I'm offering some advice that I wish someone had offered me! I have 2 loans running now costing 300+ a month that was for a car I bought when I was a teenager (some 10 years ago now!). Just kept paying it and my cards off with a new loan. I'm on my 6th car now... I wish I had kept the 3rd!

If you take this advice then good. But if you decide not to then don't be pressured into going for the high rate secured consolidation loans!

Feels good to get that off my chest.

Sean

leedb

Sean/Revo

Thanks for your time and detailed response.

To answer briefly - yes I do need a car. Live a long way from work, and public transport is a no no as would take hours - literally. Old car was beyond repair.

Referring to previous post, does anyone know roughly what % of your salary lenders will allow in paying off loans/cards etc?

Or thoughts on my other questions welcome.

Thanks

lee

leedb

hi again all

anyone have any thoughts/insights on the % question?

Thanks

loansexpert

GO to this secured loans or unsecured loans page and explore the options available.

leedb

thanks for the spam loansexpert.

To anyone else - I've seen that as long as you have 40% of your income left over after rent/mortgage, loans/cards etc, you should be ok - can anyone shed any further light on this?

Thanks

Lee