Advise needed regarding Personal Loan

rajeshwarsrm

Hi guys, I am looking to take out a personal loan primarily for buying an used car. I have very good Credit rating with no unsercured loans and no defaults. I also checked eligibility with major personal loan providers and all come up with me having a very good chance of getting loans of 12k or so.

This is my first time taking a personal loan, so I have a query regarding the Purpose of loan and how strict are providers regarding the loan usage. The primary purpose for me getting a loan is for buying a used car, but if for example I get a 12k loan and buy a car for say 9k or so. Is it okay if I use the rest for other purposes like say home improvement or getting insurance for car?

I am asking this question as I understand that APRs can be influenced by the purpose of loan. So is it okay if I get the loan for buying a used car but use the rest for other purposes? Or is it better if I choose the purpose as 'Other' which seems to be an option in most applications?

Apologies if this sounds like a noobish question, but I really am a noob when it comes to Personal loans. Thanks in advance 

jonesMUFCforever

Yes and Yes. You could perhaps see if they ask for multiple reasons for the borrowing - if not as you are using the majority of the funds for car purchase you will not get into any trouble.
Being MSE you could also consider just taking out a loan for the £9k or whatever amount you need for the car?

[Deleted User]

As long as the bulk of the amount is for the stated purpose, you should be ok.

rajeshwarsrm

Thanks Jones and ZX. I would actually prefer getting a bit more loan for some other expenses as well, so this helps.

DCFC79

rajeshwarsrm said:

Thanks Jones and ZX. I would actually prefer getting a bit more loan for some other expenses as well, so this helps.

Remember though, your credit score is only seen by yourself, lenders see your history.