Need a loan for a new car

worried123

I wonder whether anybody could pos advise or give their opinion please.

I need a new car for work....cannot do my job without one and mine is knackered completely. I would like a fairly new used car as i want longevity and reliability and want to spend 8,000. I am 60 next year with no private pension and this might be the last decent car that i am in a position to buy. (I dont reach state pension age until 66 by the way if wondering whether i am eligible for a loan).

I am concerned and nervous as i have not applied for any credit for absolutely years and I wonder whether the bank will give me an unsecured loan of 8,000. I am female, work full time but only earn around 25k a year. I am no longer a home owner but my rent is very low and I could afford the repayments.

I think that what concerns me is that on my online banking it says there is no reserve for a loan and i should ring the bank or go into them (with barclays and i have an appointment in a weeks time to see somebody).

My credit score is 999 - excellent....but despite this i dont have any real credit history over the last 6 years as i have chosen not to use it. I have only had my barclay card for about 5 months and only applied for this to build some credit history and i pay the balance each month....i have no debts at all.

I am so worried that the bank might turn me down. I dont know what the criteria would be for being given a loan and it wouldnt help me if they only offered a small loan much less than what i need. I appreciate that i should just go in there and do the deed and i will be no worse off if they say no...but it will leave footprints over my credit report that will bring my score down for the next avenue i will have to go down........

I am not sure whether to apply for a peer to peer loan....would there be more chance of them accepting me.......or i will end up as a last resort getting car finance from where i purchase.....i am just feeling nervous about the whole thing and i do need to do something quickly as my car is about to die on me....

Do you think i am more likely to be given a loan by the bank, peer to peer or get car finance where i buy from.....

Any help you could give...info or knowledge would be greatly appreciated.....thanks...

Gaz83

Your credit score is worthless.

Presumably if you could easily afford the repayments, you must have had spare money each month - what do you have in savings?

You can but ask. Banks don't make their acceptance criteria public. So the only people who will be able to give you an answer are the banks themselves.

andyfromotley

I would try the eligibilty checker on the main MSE site. It wil ime almost cretainly yurn up a cheaper loan than your own bank.

worried123

Thank you - I have tried the eligibility checker on this site but it doesnt appear to be working. I cannot find it elsewhere on the internet either.....i really would like to check my eligibility beforehand as it would give me more confidence in seeking a loan.

worried123

Does anybody know how the loan eligibility checker works please....

I have tried several times......putting in my details and it shows what the cheapest loan would be but then goes on to say check eligibility and i press that green tab but nothing happens???? do you have to wait for a period? confused.....

DCFC79

worried123 wrote: »

Does anybody know how the loan eligibility checker works please....

I have tried several times......putting in my details and it shows what the cheapest loan would be but then goes on to say check eligibility and i press that green tab but nothing happens???? do you have to wait for a period? confused.....

Yes its pretty much instant.

You tried a second browser ?

burlington6

Gaz83 wrote: »

Your credit score is worthless.

Presumably if you could easily afford the repayments, you must have had spare money each month - what do you have in savings?

You can but ask. Banks don't make their acceptance criteria public. So the only people who will be able to give you an answer are the banks themselves.

We know the answer to that lol

worried123

Well my own bank - barclays - could only offer me an apr of a whopping (are you ready for this)......25.9% and that is with a perfect credit score of 999 - they could see my income and that i could afford the loan and knew i had no debts and a good disposable income.

I then walked into a car dealership and got 0% on a brand new car.

Pixie5740

It's already been mentioned on this thread but I'll say it again, your perfect 999 score is worthless. You don't have a universal credit score. They're just numbers made up by the credit reference agencies to sell people products they do not need. Barclays sure as hell never saw your 999. Barclays will have used a combination of factors such as affordability and your credit history (not score).

worried123

it just shows however that different lenders seem to have different criteria.......i think that 25.9 was absolutely outrageous. That i can then be offered 0% finance elsewhere is just amazing.

My bank didnt do a search - i didnt allow them to as i didnt want to apply on that forecasted apr.....was told that had i applied and the loan been approved it wouldnt have been any lower than that 25.9.

Time to cancel my experian account with them before i am clobbered with their £15.00 a month.

Typhoon2000

Ther car company makes money by selling you the car, so can afford to subsidise the 0% offer. The 0% offer is hook to tempt people who cant afford to buy out right into purchasing a higher priced vehicle than they normally would. The bank can only make money on the APR.