Car Loan

wizzywig27

Hi all

Was hoping for some advice in this if anyone has any?

First of all, please can I ask that people do not comment on the company question, I've read up on them and made a conscious decision to go with them.

I have had problems in the past with credit (although none for numerous years now) and can afford he repayments. My bank won't offer me a loan so that is a no go...

Basically I went through carloan4u who said 5 declined me before one 'approved' me (although her email below would suggest otherwise).

When she was on the phone she suggest it was 13% flat rate, what does that equate to in standard APR?

I got this from her:

Private and Commercial have come back to me requesting the following documentation

· Copy of the customers latest three months bank statements
· Copy of FULL UK Driving Licence at current address - photocard AND signed counterpart.
· Landline contact number and name of HR representative for a Job Check

Once we have these we can submit over for a decision on a full approval.

Seems a bit full on if you ask me. Also seems she does not have full approval which is what she implied.

I am scared this is producing a number of searches on my account.

[Deleted User]

APR is a little more than double flat rate. So not cheap.

SeanG79

The bank (Private & Commercial) that have approved are active in the near to sub-prime market.

They will issue the broker (carloan4u) an acceptance, but the bank statements, driver's licence and job check will be conditions of the acceptance/approval. The have requested all these in advance of issuing you documents, because until the bank have received those items, they can withdraw the acceptance.

Hope that helps.

Tixy

As a rough guide flat rate is usually about half the APR.

I wouldn't be happy handing over that level of information to a loan broker especially but even to a lender that wasn't one of the main clearing banks/high street lenders.
The bank statements would be the biggest issue to me (I guess the driving licence isn't too unreasonable as you will be driving a vehicle that is owned by them).

wizzywig27

Problem is, only recently (due to house move) I've been living in my overdraft, so fear a decline from these as well. Spoke to her and she advised about 27% APR.

When I approached my bank the initially offered me 24.9% on a loan then declined me when I put through the application.

I don't know if I should proceed. The rest of the requirements are ok and have almost 2k going in a month, so repayments ain't a problem, but they will just see the fact I am living in my overdraft (at present)

SeanG79

With the bank statements, they will not be worried if you are within an authorised overdraft as long as you dont exceed it.

They are looking to see that you will be able to make the monthly payments.

You have already had the credit search done, so can submit the statements. If you then decide not to proceed, you have lost nothing and if they see the bank statements and decline the application, then that was inevitable anyway.

Good luck...

Tixy

So is your main concern that handing over the date means you will be declined rather than concerns about the privacy issues/handing over your personal data?

In terms of being scared of this resulting in multiple searches on your credit file - then this will very likely be, presumably 6 so far. But sending the data in shouldn't mean any additional search by this particular lender (although if they decline you will the broker continue applying to other lenders on your behalf racking up more searches?)

wizzywig27

Another problem is, I bank with Halifax, just noticed I'm paperless statements, so can only download in CSV format (excel) so they won't be official.

Have another account with statements but that's my 123 account for bills only with no salary going in!

wizzywig27

I worry that someone I don't know knows what I spend my money on, knows who I bank with, knows who I pay money too.

I am also worried about a decline and further searches. I've worked hard to get where I am (went from Vanquis with APR of 59% to mainstream and don't wanna screw that up)

Tixy

wizzywig27 wrote: »

I am also worried about a decline and further searches. I've worked hard to get where I am (went from Vanquis with APR of 59% to mainstream and don't wanna screw that up)

If you have been able to get some mainstream credit then are you sure you need to go as far down the subprime scale as this?
Was it just your own bank that declined you? was that for a personal loan? and if so did you look at mainstream car funding through a dealer?

wizzywig27

Do you mean like ford finance? I am genuinely scared of being declined in from of people. Plus with these searches now my chances of acceptance with anyone is low.

I applied through my bank only, no others.

I have three (arguably two) mainstream credit cards which are Barclays, sygma and Halifax.