Loan application after coming out of Stepchange for a lower interest Rate

Steve2938

Hi All 

I'm new here so I'm looking for some advice, I have a car loan with Moneybarn at 19.9% Apr and I'm almost a year clear of any debt and out of Stepchange  and I'm trying to building up my credit rating, so this is what I want to do, I want to switch the the car loan to a lower APR so I have now received my settlement figure and I want to go to the ban to ask for a loan and a lower APR I know it's not a lot of detail what do you think my chances are, currently I pay £ 389 a month, I had to buy a reliable car because I was travelling a lot for work, I haven't missed a payment and I have money in the bank my credit score is 763.
I called money barn and asked for a settlement figure which they provided but also said "because I am a good customer haven't missed any payments etc to contact their direct sales and they could potentially give me a better interest rate ? really " why can't they offer it anyway.

thanks if you read any advice will be great 

thanks Steve 

DCFC79

Steve2938 said:

Hi All 

I'm new here so I'm looking for some advice, I have a car loan with Moneybarn at 19.9% Apr and I'm almost a year clear of any debt and out of Stepchange  and I'm trying to building up my credit rating, so this is what I want to do, I want to switch the the car loan to a lower APR so I have now received my settlement figure and I want to go to the ban to ask for a loan and a lower APR I know it's not a lot of detail what do you think my chances are, currently I pay £ 389 a month, I had to buy a reliable car because I was travelling a lot for work, I haven't missed a payment and I have money in the bank my credit score is 763.
I called money barn and asked for a settlement figure which they provided but also said "because I am a good customer haven't missed any payments etc to contact their direct sales and they could potentially give me a better interest rate ? really " why can't they offer it anyway.

thanks if you read any advice will be great 

thanks Steve 

Your credit score doesnt mean anything, what matters is your history as that is what lenders see.

Any chance you can either move closer to work or get a job closer to home ?

Steve2938

It was a few jobs where I had to travel for as i'd started sole trading
I'm permanently employed as well so I'm trying to build a business as well,  all my accounts are in credit no debt apart from the car loan which is currently necessary 

thanks for the reply I'm off to the bank tomorrow to see if there is anything they can do if not it will be a phone call back to money barn and see what lower rate they can offer 

FeaturelessVoid

What does your credit file report regarding these debts?

If the defaults and/or AP markers are still there your chance of accessing low rate mainstream credit is very low.

Nebulous2

Your own bank and Moneybarn aren't the only options. 

Have you tried a eligibility checker online? 

Steve2938

FeaturelessVoid said:

What does your credit file report regarding these debts?

If the defaults and/or AP markers are still there your chance of accessing low rate mainstream credit is very low.

Hi My credit report has missed payments due to my missed payments while in DMP

MEM62

Just some food for thought.

Steve2938 said:

I have a car loan with Moneybarn at 19.9% Apr  

Steve2938 said:

and I'm almost a year clear of any debt 

So you do not view the car loan as debt?  

Steve2938 said:

I had to buy a reliable car because I was travelling a lot for work

There is no direct relationship between what you spend on a car and reliability.  

As you have cleared all your other debt there should be a reasonable chance of you getting a better APR if your history is otherwise clean.  What is the settlement figure and what is your income?  Affordability may be the issue as you will be judged as having both loans.    

Steve2938

the settment figure is £13k and my income is 47k with not a lot of other outgoings

WhoopsIDidItAgainITrolledWithYourHeart

Steve2938 said:

the settment figure is £13k and my income is 47k with not a lot of other outgoings

You can ask them what the better deal is by phoning them, or just apply for a loan elsewhere, but with all those missed payments on your file I'd be very surprised if a mainstream lender would touch you with a bargepole, let alone at sub-19.9%