Loans versus car finance after bankruptcy

icklesarge

What are the chances of getting a personal loan or car finance with a decent Apr after bankruptcy? I am slightly below the national average on clear score. I have money for a deposit and more than enough surplus income. Has anyone got any specific lenders or banks that I should contact, as it seems like a mine field. If I apply for loans and get declined does that affect my credit file?

Tia

sourcrates

Is the bankruptcy still on your credit file ?


If so, its unlikely anyone will give you credit, except the guarantor loans people, and you do not want to go down that route.


There are some companies that operate a scheme where you have a box installed in the car, and after you make your monthly payment, the box is activated, and it can be driven, like a pay as you drive thing, this has no credit checks, Google may be of help.

TheGardener

How long ago were you discharged?
Have you make sure your credit file clean up was done thoroughly?
Have you done anything to rebuild your credit history? (having a credit card and clearing it in full each month, squeaky clean management of your banking facilities et etc)

If BR was >6 years ago and you have cleaned your file and managed your finances well since then - then you should be able to get a reasonable finance deal.

icklesarge

Thanks for the replies, I was released from BR JAN 2016. How do I make sure my credit file clean up was done thoroughly? I had to change to Barclays bank pre BR and I wouldn't say they have been that helpful in rebuilding my credit file. Yes all bills come out of my bank account I have a save to buy ISA and a savings account. Only credit card I can get is 29% Apr. So I'm looking to apply for that and make small purchases and pay off immediately. In desperate need of car, just dont want to waste any more money on bangers. Ta

System

Not very if it is that fresh especially if you can only get a 29% APR.

In desperate need of car, just dont want to waste any more money on bangers.

You'll be wasting money on a newer car but in depreciation instead and that depreciation is likely to be more than the repair costs on a bangernomics car.

You seem to be awfully in a hurry to go back down the path that led you to bankruptcy and clearly you've not learned any lessons from it. You say you've excess money. Keep running the banger, put the excess money in a regular saving account and use that plus the money from the sale of whatever car you have to buy a better car. Rinse and repeat a few times over a decade and you'll be at the point you can walk into a dealership and buy a new car in cash.

icklesarge

I wouldn't say I'm in a hurry or I wouldn't be asking for advice. I don't want to buy a brand new car which will depreciate quickly either. I have worked hard over the last 2 years to be in the position I am in now and without knowing the history of what led me down that path originally I don't think it's fair to make some of the comments you have. But like I say I came for advice. I was wondering if there was people that had been in the same situation Had found a lender that had been able to offer a good Apr?my current car which I have had for 7 years costs on averagr £600 a year on mot and mechanical issues. Thanks

icklesarge

Also before the grammar police arrive, I have sausage fingers.

sourcrates

icklesarge wrote: »

Also before the grammar police arrive, I have sausage fingers.

Know grammer polize ere mate, what type of sausage ? lol

sourcrates

Here, check this out :


https://www.stoneacre.co.uk/pay-as-you-go-car-finance

foxy-stoat

icklesarge wrote: »

I wouldn't say I'm in a hurry or I wouldn't be asking for advice. I don't want to buy a brand new car which will depreciate quickly either. I have worked hard over the last 2 years to be in the position I am in now and without knowing the history of what led me down that path originally I don't think it's fair to make some of the comments you have. But like I say I came for advice. I was wondering if there was people that had been in the same situation Had found a lender that had been able to offer a good Apr?my current car which I have had for 7 years costs on averagr £600 a year on mot and mechanical issues. Thanks

You say "In desperate need of car" but you are in no hurry....

What car have you got and what is the approximate value?
How much have you saved up and how much do you anticipate your monthly repayments being?
How much are you looking to spend?

£600 a year isnt too bad to keep a car on the road though.

By all means use the credit card for monthly purchases and clear the balance when the statement comes in to build some positive history but you dont need to drop thousands of pounds that you dont have for a reliable car, maybe 2 or 3.

TheGardener

icklesarge wrote: »

!!!8230;...How do I make sure my credit file clean up was done thoroughly?
Follow this link - the date of the post may seem old but all relevant stuff https://forums.moneysavingexpert.com/discussion/677875/credit-reference-file-clean-up-post-bankruptcy

I had to change to Barclays bank pre BR and I wouldn't say they have been that helpful in rebuilding my credit file. This is something you do yourself but applying for something like a Vanquis Credit Card - then use it regularly - BUT the really important bit is that you pay it off in full each and every month. If the account is managed squeaky clean, then they gradually increase your credit limit. I must STRESS - pay it off in FULL each month. Other things are having a mobile phone account you pay on time, having a good record of paying utility bills etc.

...

Until your BR drops off your credit history (and all credit files are cleaned) you will not get mainstream credit - only high interest.
Get copies of all your histories from the Experian/Equifax and Noodle to check if your credit history looks ok
https://forums.moneysavingexpert.com/discussion/677875/credit-reference-file-clean-up-post-bankruptcy