Car finance

usfive

I'm a carer for my son and cant find anyone that will do finance! 
I receive carers allowance,  universal credit and child benefit. 
There's never a option on the online forms for my situation.  Only unemployed and that looks awful because I'm actually not.  I was hoping to get a loan for around 8,000 over a time they want for a car and pay off credit cards. I've done the calculator things and its definitely manageable.  Any advice?

MattMattMattUK

usfive said:

I'm a carer for my son and cant find anyone that will do finance! 
I receive carers allowance,  universal credit and child benefit. 
There's never a option on the online forms for my situation.  Only unemployed and that looks awful because I'm actually not. 

Technically you are unemployed, you do not have paid employment (either PAYE or self-employed).

usfive said:

I was hoping to get a loan for around 8,000 over a time they want for a car and pay off credit cards. I've done the calculator things and its definitely manageable.  Any advice?

My advice would probably to be to pay off the credit cards first, debt consolidation rarely works. What is the split between your credit card debt and the additional borrowing for the car?

usfive

Just under £2000 for cards. 
So its mainly for a vehicle. 
Really need car to support my son. Old car had to be scrapped unfortunately.  Timing is terrible 

MattMattMattUK

usfive said:

Just under £2000 for cards. 

Are you paying interest on that debt, if you are not when do your interest free periods expire? How long would it take to clear the debt at current repayment levels?

usfive said:

So its mainly for a vehicle. 
Really need car to support my son. Old car had to be scrapped unfortunately.  Timing is terrible 

Do you need to spend £6,000 or could you get away with less, at least until your debts are clear? 

ManyWays

If your son gets the higher rate mobility DLA you may be able to get a motability car.

Herzlos

Your bank should at least see the various benefits coming in, so I'd try there first.

There's often a section for "other income" that I think you could record the benefits into.

You could presumably select "carer" rather than unemployed.

scrappycars

I'm sorry to hear that you are having difficulty finding a lender that is willing to work with your specific financial situation. It can be frustrating to navigate the lending process, especially when there are limited options available.

Here are a few suggestions that may help:

1. Speak with a financial advisor or credit counselor: A professional can provide you with valuable insight into your financial situation, as well as offer guidance on how to improve your credit score and increase your chances of being approved for a loan.

2. Look for lenders that specialize in working with low-income individuals: There are lenders that specifically cater to borrowers who receive government assistance, such as carers allowance and Universal Credit. These lenders may be more willing to work with you and offer more flexible terms.

3. Consider getting a co-signer: If you have a friend or family member with a good credit score and a stable income, they may be willing to co-sign on a loan with you. This can increase your chances of being approved for a loan and may also help you get a better interest rate.

4. Check your credit report: Before applying for a loan, it's a good idea to check your credit report and make sure that all of the information is accurate. If you find errors or discrepancies, you can dispute them with the credit bureaus and have them corrected.

Remember to always read the terms and conditions of any loan agreement carefully before signing. Make sure you understand the interest rates, repayment terms, and any fees associated with the loan. Taking on debt is a serious decision, and it's important to be well-informed before making any commitments.

usfive

ManyWays said:

If your son gets the higher rate mobility DLA you may be able to get a motability car.

its quite expensive I think. When we looked into it £64 per week but the deal bracket was you never get the option to buy the car. At least with a loan or HP you do

Herzlos

usfive said:

ManyWays said:

If your son gets the higher rate mobility DLA you may be able to get a motability car.

its quite expensive I think. When we looked into it £64 per week but the deal bracket was you never get the option to buy the car. At least with a loan or HP you do

It's a pretty good deal for a new car certainly; you sacrifice the mobility part of the DLA payment and you get a rolling 3 year lease on a new car, with servicing, tyres, insurance, etc. included.
You'd really struggle to get a comparable new car for the same money (I've tried).

But yeah, at £64/week it's likely to cost more than a used car over the 3 year term.

[Deleted User]

usfive said:

I'm a carer for my son and cant find anyone that will do finance! 
I receive carers allowance,  universal credit and child benefit. 
There's never a option on the online forms for my situation.  Only unemployed and that looks awful because I'm actually not.  I was hoping to get a loan for around 8,000 over a time they want for a car and pay off credit cards. I've done the calculator things and its definitely manageable.  Any advice?

Getting into even more debt is a big no in my opinion. You say things are "manageable"? What's your plan when said car you're looking to finance needs costly work doing to it or life throws you an unexpected expense?

macman

How do you intend the service an additional debt of £8k with only your income from benefits to use?