Bad Credit - Car insurance

caroline999_2

hello,

i am looking for a bit of advice...

i have my driving test in a couple of weeks and am looking to buy a car in the region of about £700, so far i don't know how i will pay for it but i am trying to get a loan for that amount from my Credit Union but i am not sure if i will get it due to a very poor credit rating....?

if not tho i will have to try and save the money over a shoert period of time..

anyway it is going to be so expensive for me to insure it as it will be my first policy i would like to pay monthly installments but i need to know whether the insurance companies will let you do this with a very bad credit rating? ie are you credit checked when you apply to pay your insurance monthly?

the problem is i have been on confused.com and the cheapest quote is around £650 and there is no way i could afford to pay that outright plus the cost of the car?

i am not in a MASSIVE hurry for this and i am not just doing it because i WANT a car, given a choice i would gladly do without the extra costs but it is looking like my job is relocating to a business park in an area outside of the public transport route.. i cannot afford to loose my job as i have been with the company a good few years now and am finally earning a half decent salary which is helping me get my debts under control, i have a good job that i enjoy with benefits, pension etc...

i am just wondering if anyone has any answers, thoughts, advice...

anything would be appreciated

Thanks so much

Caroline :rotfl:

Thunderbird_2

caroline999 wrote: »

hello,

i need to know whether the insurance companies will let you do this with a very bad credit rating? ie are you credit checked when you apply to pay your insurance monthly?

Yes, they will check your credit files in order to lend you the money.

Have you got a credit card? If yes, you can pay the full premium on that card and try to overpay it yourself, provided you still have money to spend before you reach your credit limilt. If no, you might be able to apply to one of the Capital one credit card ( yes, the one which charges you 29.9% APR) and pay the premium on it and then overpay it with aim to clear it in 3-4months.

A thread started few days ago about how much to budget for the cost of running a car. Click here

I urge you to post your SOA ( statement of affairs) on the DebtFreeWannaBe Board for a possible workout or advice on your finances.

Be proud to deal with your debts!

raskazz

Not all insurers will check it, in fact most probably don't.

Ths is because they normally take a deposit of around 10-20% of the annual premium upfront and of course have the option of simply cancelling your cover if you miss a payment.

Quietgirl

Hi,
Thought I would reply to your post. My credit rating is totally shot. Bancrupcy, house repossession which will all be off my file by the end of this year. I passed my driving lesson last month. I checked confused.com and it came up with Bullseye insurance for me which was the cheapest. I signed up with them for monthly payments obviously its costing me more tho. I then found out that Bullseye is actually Swinton Insurance.

caroline999_2

Hi all,

Thanks so much for your replies and advice.

what i understand from your posts is that there is a chance the companies will insure me with bad credit and that there is possibility for monthly repayments - this is good news but i guess with these things you never quite know until you click the 'apply' button.

quietgirl - congratulations on passing your driving test and having your debt off the file next year!! thanks for your comments they have really given me some hope :j

Thunderbird - thanks for your advice i really appreciate it but as for taking out a credit card to cover it, i could not got a credit card now or any form of finace due to debts and very bad credit history so that is not an option for me unfortunately. i am just about to look at the link you posted tho which sounds like something that will be really useful so thanks for posting

raskazz - i hadnt thought of it like you put it, the insurers i guess won't lose any money if you don't pay as they will just cancel your policy so really its not that big a risk for them??

Thanks again guys for all your replies, much appreciated

Caroline