What documents do they ask for? £10,000 personal loan

[Deleted User]

They are unlikely to be desperately keen on it.

michaelmystery

Deleted_User wrote: »

They are unlikely to be desperately keen on it.

And what if I am buying this car for myself, but I don't currently have a drivers license or any history of paying car insurance?

Because that's really what I'm trying to do here.

I plan to get my license, but haven't yet got it.

[Deleted User]

They'll have few problems with a car for yourself.

Taking out a loan just to give to someone else is the equivalent of saying "I'll just p!ss your money up the wall, but promise I'll pay it back anyway".

Lenders can sometimes interpret that as somewhat casual approach to one's financial management.

But all the same, I wouldn't go buying a car until you can...well, drive a car.

michaelmystery

Deleted_User wrote: »

But all the same, I wouldn't go buying a car until you can...well, drive a car.

OK, well I can chose myself, but I'm asking about the loan company.

I'm just asking in terms of whether they will care, or whether their credit systems won't like it?

The consensus I'm getting is that these loan companies care about little other than whether you can pay back the money or not.

fwor

There tends to be an assumption built in to loans for cars that if you hit hard times and stop paying, they can find you and recover the car. If you're going to give it to someone else, there's a good chance they won't be able to - so they may either decline or impose a higher interest rate.

Also, as has already been said, it's unwise to buy a car in anticipation of passing your test. I believe pass rates are still under 50% for the UK test (and that includes people taking re-tests) so you should not assume it will be a walkover. The economics of buying a car on credit are bad enough, without having a fast depreciating asset that you have to tax and insure, but which you also can't freely drive.

thomathy

Candyapple wrote: »

checking that your income matches what you've put it down as

How does this work? I have often wondered, since this type of check is mentioned from time to time in these forums. But I cannot see how it is possible. I do not think this information is stored as part of the credit reference agency's file, since no such information is visible when requesting a copy of your own credit file.

I don't think there can be any cross-referencing behind the scenes by financial services firms either, to look at any consistency of answers. This would be completely unworkable, since their application forms all ask completely different questions, for example some ask "How much do you earn?" others "What is your salary" and others "What is your income?", all of which are quite likely to have different (possibly very different) answers. And income is such a variable thing - it might be twice as much next year as this year, or half as much. But neither is an indicator that the stated values are inaccurate.

Do lenders really have any ability to detect income? I don't think they can, unless you put all income through one bank and it happens to be the lender or associated with the lender.

[Deleted User]

Have a look at Hunter, which checks for inconsistencies.

DCFC79

michaelmystery wrote: »

And what if I am buying this car for myself, but I don't currently have a drivers license or any history of paying car insurance?

Because that's really what I'm trying to do here.

I plan to get my license, but haven't yet got it.

So pass your test and then buy the car.

If you do it the other way round you could end up with a car sat on your drive and you unable to drive it as you have no license.

michaelmystery

Out of interest, what is the most likely way to get approved for a £10,000 loan?

You say that they assume you could sell the car to pay back some of the loan?

What about the other common reasons.

Zopa lists the following reasons...

Car
Home improvements
Debt consolidation
Credit cards
Boat
Business
Caravan
Christmas expenses
Electronic goods
Holiday
Holiday home
House deposit
Jewellery
Land purchase
Motorbike
Pay off relative or friend
Repairs
Stocks and shares
School fees
Solar panels
Tax bill
Wedding expenses
Other

ReadingTim

I'm not advocating lying, but how, seriously, can banks check you used the loan for the stated purpose?

Take for example a car loan. Would they monitor your account for payments to a car dealer? But what if it was a private sale? What if you paid the dealer with a credit card provided by an unrelated banking group? Or took out cash over a period of days and paid in cash? Do they request info from the DVLA or insurance companies to see whether you acquire a car or insurance within a few weeks or months after taking out the loan? And for how long should they monitor your account and other spending habits to satisfy themselves?

It seems to me that it's impossible for them to "check up on you" without a massive invasion of privacy, if not breach of data protection, and that's before one considers the effort (and therefore cost) in terms of doing this. Especially if the punter makes the repayments on time each month, every month.

I would imagine that the only time they'd be concerned is if you default and they're looking to get some of their money back - for example by seizing the car. But if there's no car 'cos the money was spent on the horses instead, you'd have a problem, and the various awful repercussions mentioned above would start to happen. But at that stage, you're probably fairly deep in the !!!!!! anyway....