Trying to get a loan

iamwilllavery

Thanks in advance for any advice.

My current state of affairs are:
16k on Credit Cards all 0% and all are going to last for 18-24 months
8.5k personal loan with Tesco ending May 21
CCs and Personal loan was used to renovate house.
Mortgage free on a 225k house.

Long term I believe my finances are in good enough shape but maybe they aren't.

I would like to get a loan for 7.5k towards a car. I am struggling to get offers even off some banks. The best rate I have got so far is around 16% which I think is crazy high.

Any advice on how to get that % down?

Thanks in advance again.

Ben8282

Value of house is unfortunately not relevant
With an existing loan you will find it very difficult to get a headline rate on a second loan.
You also have a pretty large credit card balance. The fact that it is at 0% is not necessarily to your advantage as if you are looking for further finance now lenders will be very concerned at your ability to repay the credit card balances or maintain the payments when they become interest bearing. Obviously you are not stoozing as if you were you would not be seeking another loan at this point so it will be automatically assumed that you do not have the funds to repay the credit cards.

It will of course all depend on income an affordability but I think you will find things difficult as far as getting another loan at a low rate of interest is concerned. Good luck anyway.

Gaz83

You don't say what your income is, but you've already got £25k of unsecured debt. You're going to struggle to find anyone willing to lend you money at their headline rate.

iamwilllavery

My disposable income at the end of each month is £950.

Gaz83

iamwilllavery wrote: »

My disposable income at the end of each month is £950.

Shouldn't take you too long to save then!

[Deleted User]

16% is a surprisingly good rate, given your indebtedness.

But save for a few months and avoid paying the interest altogether.

BoGoF

If you are making numerous applications then stop....now.

Lots of hard searches are not a good look on your file. No more applications for 6 months and pay down some of your existing debt from that spare £950.

Are you paying minimum payments on the cards.

£950 disposable income tells us nothing about your actual income.

BoGoF

From you post on the debt-free board you say you earn £35,200 and your wife £21,000. So £56,000 between you with no mortgage and you have accumulated £25,000 of debt? No savings?

You must be leading an extravagant lifestyle, aka living beyond your means.

EssexHebridean

At 25k in debt, I'd suggest stopping to think whether adding another 7.5k is a good position to put yourself in. You say it's "towards" a car which suggests a car of a higher value, which in turn suggests you have savings. Savings while also paying interest (the existing loan) in generally a bit of a no-no aside from a basic emergency fund.

Go through your budget, make savings where you can to increase your monthly surplus.
If you need a car - rather than just want - then save the surplus for a couple of months and buy a runaround that will get you from a-b.
Set the payments to the CC's to a little above the current minimums to avoid the payments dropping off over time.
Check if you can OP the loan - if you can, do. If not, stash money aside (earning interest) until you have enough to clear it early.
Turn your attention to stashing enough money to clear the cards when the 0% ends - or keep an eye on them with regard to further 0% deals - ideally fee free.
Once you are debt free then your surplus is all yours to do what you like with - you can then save for the car you want, rather than need.

iamwilllavery

We are and we aren't. When you inherit an old country house a temporary teacher and can't get a mortgage because you were temporary we wanted to get the work done some way.

15k of savings, 20k personal loan, 10k of credit cards.

Kitchens, bathrooms, carpets, oak flooring, furniture

The last year we have been spending the majority of our disposable income on things in our house e.g. a utility room at £1400. Thankfully now that should be our house spending over for quite some time.

We are currently paying all cards off at 0%

enthusiasticsaver

I don't think you will get a good rate if you have £25k of unsecured lending already. As that has presumably built up over a short term period that will send red flags to lenders. My advice is attack the debt then apply for a 0% money transfer in 6 months time.