Hire purchase Interest Rate

DCFC79

Tarun139 wrote: »

I appreciate everyone's help. I was actually thinking I made a huge mistake.

I wanted to increase my credit score as I want to get a mortgage in a couple years.

I also needed a car, so I thought I'd buy a semi decent car that I could use to help with deposit in the future, thinking I could pay it off by June.

How not to do it.

somethingcorporate

DCFC79 wrote: »

How not to do it.

Oh dear! That will be an expensive lesson. 6 months, £10k loan, 25% APR = £1k in interest.

Pixie5740

Tarun139 wrote: »

I appreciate everyone's help. I was actually thinking I made a huge mistake.

I wanted to increase my credit score as I want to get a mortgage in a couple years.

I also needed a car, so I thought I'd buy a semi decent car that I could use to help with deposit in the future, thinking I could pay it off by June.

This is one of the dumbest plans to build credit history I have ever seen on the forum. It's up there with people thinking pay day loans help improve credit history.

mustiuc

"Thinking I could pay it off by June".
With all my respect regards to what you said... I can assume we will see you again in June asking for help because you wont be able to keep the payments/interest.
If you have money, buy with cash!!! Don't put yourself in debt for a stupid car; which wont be yours without paying the big final/balloon payment. You will end up paying half of it +25% and give up when they'll ask for another 3.5-5k final bill.
If you "can afford" 1.8k a month payment why you don't buy a SH/HP instead of pcp?
Best and easier way to buy a history over a year is to have a CC, buy something of £100 and set a £10/month direct debit. And forget about it. Buy a contents/house insurance and pay monthly (my wife is "building her history" by paying £2.5 a month for contents insurance).
You started this journey with good intentions but there is a big chance to ruin everything by taking the hard way to do it. If you fail a payment your mortgage will be gone or the interest will be much higher.
Cheers