Lloyds bank loan advice needed please.

lewis1984

Hi all,
Ive been with my current bank Lloyds for over 5 years. I was contacted by my local branch a few weeks back offering me a credit card in which I declined as I have a low interest virgin card. However I would like a £8k loan for a new car so I rang the bank and said that I was offered a credit card but would I be eligible for a loan? I was informed not eligible for a loan at the moment but to ring back on the 5th of next month as it is reviewed monthly. My circumstances are - between £1300 and £1600 a month income, full time employment although I have 1 default on my account from 4 years ago I have been trying to re-build my credit score. All current bills paid on time mobile phone, credit card etc. Is there much difference in criteria in a personal loan as apposed to a credit card?
I have heard that lloyds also like to say no and I am thinking of moving banks.

Many thanks

Lewis

SHill

Hey things are not the same as they were 5-4 years ago. Can you budget for the loan including the % interest rate. Have you put some savings aside incase you cannot pay for a few months. Have you set aside any emergency money for that rainy day.
Have you checked your experiean & the other well named credit check agencies. You can do this for little as a couple pounds. Paper copies will be sent to you. How long have you lived at current address, are you voting register. Are you paying off other credit using credit cards regularly.
you say you want a loan but be sensible as to how much and how long your willing to pay for it.
You say you make between to monetary values take out any over time paid that part of the income is not always a given. Just state you flat basic salary after tax and NI and anything else (pension) when you are completing any requests. Be honest on forms. Don't do too many request at once as too many in short space will hit your credit worthyness.

CLAPTON

to borrow 8,000 on a modest income of say 20k is quite high

maybe save up and buy a cheaper motor?

lewis1984

Ive got a noddle account and used to have a experian account. I think ill have to set up a new experian or try equifax and see if they hold any different information.
In regards to 4 - 5 years ago thats when the 1 default is from ive been offered the credit card in the last few weeks but already have 1 with virgin. My income of £1300 - £1600 per month is after tax and NI and any other contributions.
If they wont accept the loan then do you think going for hire purchase is an option? I hardly think 8k over 4 years is alot when people regularly finance new cars who are perhaps on even less pcm

SHill

Slow down. Breath there is no real rush or you'll be making a bigger and more expensive mistake.
I have learned my lesson & took me to read and review this website what I had to do to get myself out of debt.
Right then ensure you right down all you daily, weekly, monthly outgoings (be honest here all you non negatioables). Stop anything you no longer payout for or want to pay out for. See what's left. Will this cover your monthly car loan, petrol, insurance, road tax plus any service or work done on your car. Like I said emergency fund to pay for tyres, excess etc. yes it's nice to have a new car but if you go with the car loan you have to read the small print which includes mileage per year. You may limit to only doing 10,000 miles a year then any extra you will have to pay over and above your loan with them.
It always in the detail!!
Get some savings behind you so that when you apply for the loan or even 0% perchase card. Look through this site find about ways to budget and save too.
Do your homework/ research know what you are paying for and when. So stand a better chance of amount of money. Just keep reading money saving expert. Read the entries on the forum on people wanting to be debt free.

CHR15

Have you been putting 200 a month into a savings account?

If not, try it for 6 months or so to make sure you can afford the repayments.
if you can, great, now factor in the servicing, insurance, tax etc and be confident it is affordable.

the bonus now is that you need to borrow less money.

don't try keeping up with the Jones'. Ignore what other people have, most of them are probably on here looking for ways to avoid paying for their cars as they got ripped off.

AndyT678

lewis1984 wrote: »

I hardly think 8k over 4 years is alot when people regularly finance new cars who are perhaps on even less pcm

Yes it is! Yes people do it and those are the people you find on here with their tales of woe and repossession etc...

I have a different attitude. My salary is probably about 3 - 4 times yours and my wife's is about double. I live about 50 miles away from my work and consequently do a fairly high mileage. A year ago I very grudgingly paid more than twice what I have ever paid for a car before when I parted with the INSANE amount of £5,000 in cash. This profligacy still troubles me today.

You do not need an £8,000 car. You cannot afford an £8,000 car.