£3000 loan for a 18 year old?

KirilsPopovs

I'd like to take out a £3000 loan to buy a motorbike. 
My credit history is "Fair" and i have a stable monthly income of £1100 after tax at the moment. I am currently an apprentice.
What do you recommend I do? Are there any places I can take a loan out and not pay insane % or is it a bad idea in general? Thanks in advance.

Caz3121

how much do you put into savings each month currently? is the loan to cover insurance also or will you be paying for that separately. Will having a bike save you other costs?

KirilsPopovs

Caz3121 said:

how much do you put into savings each month currently? is the loan to cover insurance also or will you be paying for that separately. Will having a bike save you other costs?

I'm trying to reply but it keeps saying the post is suspicious and I need to email a team. Any idea why that is?

MEM62

You have just reached adulthood and want to start it in debt.  That does not bode well for the finances of your future self.  You are taking home £1,100 per month, it would only take you a few months to save up and pay for it with cash.  At least then, if it is a Chinese bike, you won't still be making payments on something that meted away in the first winter of use.     

KirilsPopovs

MEM62 said:

You have just reached adulthood and want to start it in debt.  That does not bode well for the finances of your future self.  You are taking home £1,100 per month, it would only take you a few months to save up and pay for it with cash.  At least then, if it is a Chinese bike, you won't still be making payments on something that meted away in the first winter of use.     

That is true, although, the bike i want to get was the most selling 125cc bike in 2020 and is very reliable apparently despite being a Chinese bike. Lexmoto lxr125.

Ebe_Scrooge

In terms of being accepted for a loan, it will depend on a number of factors including any outstanding debts you have.  Ignore the "fair" rating given by the reference agencies, it means nothing - what history do you have?  Have you got a credit card that you use and repay regularly, any other loans or credit accounts?

Aside from whether or not you'd be accepted for a loan, could you afford it?  How much disposable income do you have every month?  £3000 is not a huge amount to save if you put your mind to it, and of course saving up would save you a fair amount in the long run in terms of interest you're not having to pay.  Even if you did get a loan, are you sure you'd be able to afford the repayments, in addition to any other outgoings you'd have, and in addition to the running costs of the bike, and the inevitable repairs that will crop up?

george9071

Due to your age you may not get excepted for a good interest loan, because your only just of legal age for credit and they don’t have a record of how you manage an account regardless if your credit score is “fair”. You might be best to wait a while or if your mind is set on the loan, speak to your bank before you try any of the high interest/dodgy loans out there that you will be paying off for ages 

pjcox2005

Not used it but have you looked here Cheap personal loans guide - Find the best rates - MSE (moneysavingexpert.com)
It includes a loan eligibility calculator so you can work out if you'd be accepted and likely rate. I expect other websites have similar comparison tools.

jay1804

KirilsPopovs said:

I'd like to take out a £3000 loan to buy a motorbike. 
My credit history is "Fair" and i have a stable monthly income of £1100 after tax at the moment. I am currently an apprentice.
What do you recommend I do? Are there any places I can take a loan out and not pay insane % or is it a bad idea in general? Thanks in advance.

For that amount I would say, save up, you would find it difficult to get finance out at a decent rate. Although you're not taking out credit for the bike now , it might be a good idea to start building your credit history, you can do this via a credit card, if you want more information, you can search the website/forum or ask.

a_car_person

I know you want a loan but maybe a credit card might be better - could be easier to get and you have Section 75 if anything goes wrong (hope it doesn’t).

KirilsPopovs

Thanks for all your replies everyone. I think I'll hold off on the loan. Another question i have is about credit cards, I currently don't have one and the best I can get is either aqua classic with 32.9% ARP or capital one classic with 34.9%. Do you have any experiences with either of those and is it a good idea to get one of them to build credit score?
Thanks in advance.