Already have one loan would I be OK for a second ?

Pete.g

Hi just a quick question,

I already have a loan (tesco) for the car I am running atm, now I fancy a change of car would I be OK to apply for a second loan, buy a second car then sell the original and pay off the first loan?

I've never done this before so was wondering how likely I would be to be accepted for the second loan. I would class my credit rating as very good.

I have had a look at loans and have seen M&S will give 3months grace on new loans which would be ideal as it would give me time to sell the first car and pay the original loan off before the new loan payments start.

Thanks,

Pete.

[Deleted User]

You can certainly apply for a second loan. Whether you would be accepted would depend on your credit file, your income and how the new lender views you as a risk.

CLAPTON

Pete.g wrote: »

Hi just a quick question,

I already have a loan (tesco) for the car I am running atm, now I fancy a change of car would I be OK to apply for a second loan, buy a second car then sell the original and pay off the first loan?

I've never done this before so was wondering how likely I would be to be accepted for the second loan. I would class my credit rating as very good.

I have had a look at loans and have seen M&S will give 3months grace on new loans which would be ideal as it would give me time to sell the first car and pay the original loan off before the new loan payments start.

Thanks,

Pete.

will the first car pay off the first loan?

had you considered keeping the car and saving money for future cars thus avoiding paying all that interest?

thebritishbloke

The 'grace' periods they give you aren't free. You'll be charged interest on the full balance for all 3 of those months. Given that interest will be calculated on the current loan balance, which in this case will be the full loan amount, you'll be paying a hell of a lot in interest for those 3 months.