Loan wrongly declined

welshwolf_2

Thanks for all your advice guys/girls. I suppose my main concern isn't really with having a new car at this point but rather knowing that my credit rating is sufficient enough for me to have a loan if it turns out I ever need one.

laidbackgjr

From what you've said, your credit rating is probably good enough to get a loan, just not for 15k+, you'd probably get a loan upto around 8k. It's not just about credit rating but also about how much you earn, if you want a 27k new car then you probably want to be concentrating on increasing your earnings rather than worrying about your credit rating.

somethingcorporate

£27k on a car on a £20k salary :O

You're not rewarding yourself, you'd be punishing yourself for years to come.

welshwolf_2

Just to clarify, since I have no credit cards and any finance agreements have been satisfied a while ago, does it affect my application for credit because I have no on-going credit commitments? Please see below for my credit history:


CLYDESDALE FINANCE
Loan
Satisfactory
Settled 10/02/2013


HSBC BRANCH BANKIN...
Current Account
Satisfactory
£0 01/06/2014


HITACHI CAPITAL CO...
Loan
Satisfactory
Settled 07/11/2010

NATIONWIDE BUILDIN...
Current Account
Satisfactory
£0
15/06/2014


GMAC UK PLC
Hire purchase/C...
Satisfactory
Settled 30/06/2013

27col

poppasmurf_bewdley wrote: »

Why on earth not! I have a £27k car. It's a Mondeo Ghia Estate Auto. List price was £27k.

Only difference is that I only paid £12k for it at less than three years old. And I paid cash.

You might have a £27k car but you very sensibly only paid £12k for it. That is a world difference to what the op is wanting to do.
You let someone else lose the £15k, the op is proposing to lose the £15k himself.

poppasmurf_bewdley

27col wrote: »

You might have a £27k car but you very sensibly only paid £12k for it. That is a world difference to what the op is wanting to do.
You let someone else lose the £15k, the op is proposing to lose the £15k himself.

Yes, that's why I mentioned it, hoping the OP would take note. Not only that, he'll be paying interest on that lost money.

mattyprice4004

I don't understand the 'you don't need a £27k car' comments - if the lad wants a £27k car and can afford it, then good on him. However, I'm on the finance companies' side - at the moment it'd have been a bad idea.


OP, I do agree that on your current wage it's an awful lot of financial commitment. I needed something a bit nicer than the Corsa/Fiesta/etc a lot of my friends still have, so bought something 10 years old that was over £27k when new - and aside from regular servicing it hasn't gone wrong yet.

Perhaps that'd be a good option for you? There are loads of cars from the early 2000s that are flashy and rather quick - you'll just spend a bit of what you'd pay on finance on repairs instead (stuff will break at 10 years old!)

27col

poppasmurf_bewdley wrote: »

Yes, that's why I mentioned it, hoping the OP would take note. Not only that, he'll be paying interest on that lost money.

Some people do seem to be intent on making bad financial decisions. It's a ridiculous concept. You spend up to 5 years repaying capital and interest on money that you lost, the moment that you drove it from the show room. All so you can "feel good" about owning a new car. Or, to give yourself a "treat".