car loan newbie qs

anangel

Hi there,

I'm totally new to credit! Only ever had an overdraft!

I did a search on MSE for personal loans for cars and i came back as 10% likely to get a decent loan (£4000).

I've just done a search on Zuto (via autotrader) and I'm "pre-approved" but I have to speak to someone next to find out about interest rates etc, so I know that this could still be a really expensive option.

I've just got a Barclaycard and am waiting to hear what my limit will be (Max £1500) and I need some of that for other things beside car.

My credit rating is 913.

My questions are:

1. How long after getting a credit card should I wait before applying for car finance?
2. Are there any other options beside the Zuto loan on AutoTrader?
3. How can I get the APR down if I do go through Zuto?
4. Is there like a minimum spend to get credit? I'm looking at borrowing about £4k but it could be less.

Thanks in advance!

[Deleted User]

You should apply for the loan when you need it. Assuming you need the car imminently, you don't have 6-12 months to build up much history of using the card.

Ignore your credit score. Your APR will be based on your risk - you just need to fill out the application accurately.

Each lender's site will tell you the minimum loan value. Your own bank may be another option.

Terence_Burrows

Probably a bit late but in regards to car finance there are many avenues you can take. You can either:

- Go to a bank and use a loan to pay off the finance ( if the rate is cheaper )
- Go direct to a dealership and finance directly through their supplier.
- As @zx81 said above APR is based on your risk so the more accurate the information you put in the better.