Best Loan opinions and advice

Jack_Gleeson

Hello all im wondering if some of you finacial guru's could shed some light on me and guide me on the right path on which loan to get with my following situation. ill explain my financial situation below so you can make give me the best advice possible

my credit :
barclaycard limit = £500 debt = 0
capital one card Limit = £500 debt = £158
Egg loan = £1178

My earnings:
13k a year and i can do overtime if that would help me when applying
My age is 20

reason for loan:
Im wanting to purchase a car to get me from and to work and also to be able to just get about from a to b. the price im looking to spending is around 2-3 K for the car, i also want to be able to pay off my loan in full and pay off my credit card and also pay off a years on my cars insuarnace, so all in all ive came up with the figure of £6000 for the loan ammount im after, the time period would be the maximun time possible so the payments are lowest, e.g. over 6+ years so that the payments are around £80 a month, i would be able to pay that easy enough.

I was told it would be best to pay my egg loan of £1178 and then apply for the 6Kloan via egg cause im more likely to get it cause it shows ive paid one off, but i dont know how long it would take me to pay it off so i was wondering if anyone had any other ideas, all feedback would be greatly appreciated, thanks alot

Jack

jonesMUFCforever

Jack
Have you done an Income and Expenditure to see what you can afford to pay monthly?
Don't forget MOT and servicing, new tyres etc etc that always add to the cost of motoring.
Also bear in mind that if you only want a car costing £2 or £3k , will it last until you have finished repaying? You could be half way paying back the loan in say 3 years and find yourself wanting/needing to replace again.
IMO if you need to borrow do it for shortest period possible.
Eric

Luke

I know its not what you want to here, but just get a cheap car £750ish. Loans for cars are silly, the car is going to fall in value whist you loan increases in value. Switch your cards to 0% and you could ask for a limit increase and try and do a sbt to get the egg loan on to a 0% card.
Eric made a good point about the length of your loan. Imagine if in three years you took out another loan or car finance agreement while you are still paying for your original one.