Car finance

amy2015

I am thinking of going for car finance I am limited for options due to historic defaults. One of the options was Money barn. My question is in a couple of years I would like to apply for a mortgage and will having a car finance with Money barn on my credit file cause me problems? How is it shown on your credit file? Thanks

cjmillsnun

On your credit file, it will show the loan amount, the payment amounts and the term.

How historic are the defaults, and can you afford the repayments on the car you are looking at?

Is your current car reliable?

Would you be better putting aside the payments you would've spent on the car finance aside for 6 months or so and getting a cheaper car whilst you let your credit file improve.

In a couple of years you may then be able to get the car you want with a much better choice of finance.

Remember a car is a depreciating asset meaning that with finance, you will always lose out. Therefore it may be better to hang on, pay cash for something slightly more reliable and then get a better deal later on so you lose less.

System

Car finance like having other loans will have an impact on the amount of money you may be able to get on a mortgage due to the affordability test.

Get the mortgage then get the car.