What are my chances of obtaining a loan?

jennymeg2

Hi,

I'm looking for some advice. I need to apply for a car loan soon as my car is very tired and old!
My Credit score is fair, with no missed payments from 2008.
I have an Argos store card which I owe £1400, and 3 overdrafts totalling £750.00. I earn £22,000 per annum. I have no savings!

I want to borrow £6,500 over 5 years which I know I can afford.

What are my chances of being accepted?

I have just joined the Credit Union in order to start saving in the New Year.

Can anyone help!

Cheers x

[Deleted User]

Living in your overdraft is a big negative and will limit you

Assuming you were accepted, how would you repay it? The fact you have no savings suggests you have no surplus at the end of each month.

Foxy-Stoat_3

Good !

Although nothing that is posted on this forum will make a blind bit of difference to the lender.

Good lucks.

thebritishbloke

I don't think you can afford to borrow it if you currently have no savings and £2,150 of debt you can't afford to repay.

fwor

As zx81 says, your past history suggests that this won't go well. If you have accumulated £2k of debt without the additional loan repayments, how do you plan to free up the extra money per month?

The fact that your credit rating is "fair" suggests that you will only get a loan with a comparatively high rate of interest, so it won't be cheap overall.

A much better solution - provided you can keep your old/tired car running for another 6 months - would be to start your Credit Union savings ~now~ and ask them for a loan when you have a proven record of saving regularly. The interest rate for this is likely to be ~much~ lower than you will get anywhere else.

jennymeg2

Thank you all for your helpful replies! I could have a surplus at the end of month, I intend to spend on other things rather than clear my debt! I pay minimum payment on storecard which isn't great as interest is high. Was wanting to get a 0% balance transfer credit card & pay of within timeframe! But as I want a car loan didn't want to apply for more credit!

thebritishbloke

jennymeg2 wrote: »

Thank you all for your helpful replies! I could have a surplus at the end of month, I intend to spend on other things rather than clear my debt! I pay minimum payment on storecard which isn't great as interest is high. Was wanting to get a 0% balance transfer credit card & pay of within timeframe! But as I want a car loan didn't want to apply for more credit!

Seriously?...

forgotmyname

You dont have any surplus at the end of the month though, because you have not paid the debts off.

Overdraft = Bad
Minimum payment = Bad.

No missed payments from 2008? Does that mean you have missed payments and oustanding finance from before then?

jennymeg2

I had 3 late payments on my loan.

I recently did a soft search with MONEYSUPERMARKET for loans and it said I had a high chance of getting a loan with 3 of the big banks! Still a bit scared of applying and getting refused!

Foxy-Stoat_3

I would be more scared of clearing the Argos car and 3 overdrafts, buying a car then being in the same position + £6500 of additional debt in a few months time !

Do cancel your Argos card and your overdrafts after you pay them off and live within your means from now on, use a spreadsheet to plan your monthly/yearly budgeting.

Not sure why you have 3 current accounts all with negative balances.

SilverSaloon

you can buy a perfectly reliable car for a lot less than £6500.

Do that after a few months of saving up.

what is actually wrong with your current car?