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    • icklesarge
    • By icklesarge 6th Aug 18, 1:41 PM
    • 6Posts
    • 4Thanks
    icklesarge
    Loans versus car finance after bankruptcy
    • #1
    • 6th Aug 18, 1:41 PM
    Loans versus car finance after bankruptcy 6th Aug 18 at 1:41 PM
    What are the chances of getting a personal loan or car finance with a decent Apr after bankruptcy? I am slightly below the national average on clear score. I have money for a deposit and more than enough surplus income. Has anyone got any specific lenders or banks that I should contact, as it seems like a mine field. If I apply for loans and get declined does that affect my credit file?

    Tia
Page 1
    • sourcrates
    • By sourcrates 6th Aug 18, 2:17 PM
    • 15,898 Posts
    • 14,952 Thanks
    sourcrates
    • #2
    • 6th Aug 18, 2:17 PM
    • #2
    • 6th Aug 18, 2:17 PM
    Is the bankruptcy still on your credit file ?


    If so, its unlikely anyone will give you credit, except the guarantor loans people, and you do not want to go down that route.


    There are some companies that operate a scheme where you have a box installed in the car, and after you make your monthly payment, the box is activated, and it can be driven, like a pay as you drive thing, this has no credit checks, Google may be of help.
    Last edited by sourcrates; 06-08-2018 at 2:42 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • TheGardener
    • By TheGardener 6th Aug 18, 2:32 PM
    • 2,496 Posts
    • 2,446 Thanks
    TheGardener
    • #3
    • 6th Aug 18, 2:32 PM
    • #3
    • 6th Aug 18, 2:32 PM
    How long ago were you discharged?
    Have you make sure your credit file clean up was done thoroughly?
    Have you done anything to rebuild your credit history? (having a credit card and clearing it in full each month, squeaky clean management of your banking facilities et etc)

    If BR was >6 years ago and you have cleaned your file and managed your finances well since then - then you should be able to get a reasonable finance deal.
    • icklesarge
    • By icklesarge 6th Aug 18, 2:46 PM
    • 6 Posts
    • 4 Thanks
    icklesarge
    • #4
    • 6th Aug 18, 2:46 PM
    • #4
    • 6th Aug 18, 2:46 PM
    Thanks for the replies, I was released from BR JAN 2016. How do I make sure my credit file clean up was done thoroughly? I had to change to Barclays bank pre BR and I wouldn't say they have been that helpful in rebuilding my credit file. Yes all bills come out of my bank account I have a save to buy ISA and a savings account. Only credit card I can get is 29% Apr. So I'm looking to apply for that and make small purchases and pay off immediately. In desperate need of car, just dont want to waste any more money on bangers. Ta
    • Tarambor
    • By Tarambor 6th Aug 18, 2:48 PM
    • 3,968 Posts
    • 3,002 Thanks
    Tarambor
    • #5
    • 6th Aug 18, 2:48 PM
    • #5
    • 6th Aug 18, 2:48 PM
    Not very if it is that fresh especially if you can only get a 29% APR.

    In desperate need of car, just dont want to waste any more money on bangers.
    You'll be wasting money on a newer car but in depreciation instead and that depreciation is likely to be more than the repair costs on a bangernomics car.

    You seem to be awfully in a hurry to go back down the path that led you to bankruptcy and clearly you've not learned any lessons from it. You say you've excess money. Keep running the banger, put the excess money in a regular saving account and use that plus the money from the sale of whatever car you have to buy a better car. Rinse and repeat a few times over a decade and you'll be at the point you can walk into a dealership and buy a new car in cash.
    Last edited by Tarambor; 06-08-2018 at 2:50 PM.
    • icklesarge
    • By icklesarge 6th Aug 18, 3:00 PM
    • 6 Posts
    • 4 Thanks
    icklesarge
    • #6
    • 6th Aug 18, 3:00 PM
    • #6
    • 6th Aug 18, 3:00 PM
    I wouldn't say I'm in a hurry or I wouldn't be asking for advice. I don't want to buy a brand new car which will depreciate quickly either. I have worked hard over the last 2 years to be in the position I am in now and without knowing the history of what led me down that path originally I don't think it's fair to make some of the comments you have. But like I say I came for advice. I was wondering if there was people that had been in the same situation Had found a lender that had been able to offer a good Apr?my current car which I have had for 7 years costs on averagr 600 a year on mot and mechanical issues. Thanks
    • icklesarge
    • By icklesarge 6th Aug 18, 3:01 PM
    • 6 Posts
    • 4 Thanks
    icklesarge
    • #7
    • 6th Aug 18, 3:01 PM
    • #7
    • 6th Aug 18, 3:01 PM
    Also before the grammar police arrive, I have sausage fingers.
    • sourcrates
    • By sourcrates 6th Aug 18, 3:18 PM
    • 15,898 Posts
    • 14,952 Thanks
    sourcrates
    • #8
    • 6th Aug 18, 3:18 PM
    • #8
    • 6th Aug 18, 3:18 PM
    Also before the grammar police arrive, I have sausage fingers.
    Originally posted by icklesarge

    Know grammer polize ere mate, what type of sausage ? lol
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • sourcrates
    • By sourcrates 6th Aug 18, 3:22 PM
    • 15,898 Posts
    • 14,952 Thanks
    sourcrates
    • #9
    • 6th Aug 18, 3:22 PM
    • #9
    • 6th Aug 18, 3:22 PM
    Here, check this out :


    https://www.stoneacre.co.uk/pay-as-you-go-car-finance
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • foxy-stoat
    • By foxy-stoat 6th Aug 18, 3:23 PM
    • 3,221 Posts
    • 1,821 Thanks
    foxy-stoat
    I wouldn't say I'm in a hurry or I wouldn't be asking for advice. I don't want to buy a brand new car which will depreciate quickly either. I have worked hard over the last 2 years to be in the position I am in now and without knowing the history of what led me down that path originally I don't think it's fair to make some of the comments you have. But like I say I came for advice. I was wondering if there was people that had been in the same situation Had found a lender that had been able to offer a good Apr?my current car which I have had for 7 years costs on averagr 600 a year on mot and mechanical issues. Thanks
    Originally posted by icklesarge
    You say "In desperate need of car" but you are in no hurry....

    What car have you got and what is the approximate value?
    How much have you saved up and how much do you anticipate your monthly repayments being?
    How much are you looking to spend?

    600 a year isnt too bad to keep a car on the road though.

    By all means use the credit card for monthly purchases and clear the balance when the statement comes in to build some positive history but you dont need to drop thousands of pounds that you dont have for a reliable car, maybe 2 or 3.
    • TheGardener
    • By TheGardener 6th Aug 18, 3:49 PM
    • 2,496 Posts
    • 2,446 Thanks
    TheGardener
    !!!8230;...How do I make sure my credit file clean up was done thoroughly?
    Follow this link - the date of the post may seem old but all relevant stuff https://forums.moneysavingexpert.com/showthread.php?t=677875

    I had to change to Barclays bank pre BR and I wouldn't say they have been that helpful in rebuilding my credit file. This is something you do yourself but applying for something like a Vanquis Credit Card - then use it regularly - BUT the really important bit is that you pay it off in full each and every month. If the account is managed squeaky clean, then they gradually increase your credit limit. I must STRESS - pay it off in FULL each month. Other things are having a mobile phone account you pay on time, having a good record of paying utility bills etc.

    ...
    Originally posted by icklesarge
    Until your BR drops off your credit history (and all credit files are cleaned) you will not get mainstream credit - only high interest.
    Get copies of all your histories from the Experian/Equifax and Noodle to check if your credit history looks ok
    https://forums.moneysavingexpert.com/showthread.php?t=677875
    Last edited by TheGardener; 06-08-2018 at 4:37 PM.
    • icklesarge
    • By icklesarge 6th Aug 18, 4:16 PM
    • 6 Posts
    • 4 Thanks
    icklesarge
    By in desperate need I mean my cars broken again, I work and have a child to get to school/holiday club also. Bus is not an option. I don't want to hurry into a decision, but I do need make an informed decision. Hence why I am here.

    I have a vaukhaull astra, which I reckon would only get about 500 on part ex if that. I've saved 1500 and I'd be looking to pay 250 a month and maybe a 10k car, about 5 years old.

    Thanks for all the help
    • madvicker
    • By madvicker 6th Aug 18, 4:29 PM
    • 146 Posts
    • 101 Thanks
    madvicker
    By in desperate need I mean my cars broken again, I work and have a child to get to school/holiday club also. Bus is not an option. I don't want to hurry into a decision, but I do need make an informed decision. Hence why I am here.

    I have a vaukhaull astra, which I reckon would only get about 500 on part ex if that. I've saved 1500 and I'd be looking to pay 250 a month and maybe a 10k car, about 5 years old.

    Thanks for all the help
    Originally posted by icklesarge
    I would need more information to make an accurate assessment, but on the face of it my advice would be to stick with the old banger. Here's why:

    AS your car is post bankruptcy, I'm assuming you own it outright. If you have saved 1500 in the last 2 years, that means your spare cash comes to about 70 a month. Yet you want to pay 250 a month just on the finance for the car? Which, I'm assuming would be on top of what you pay for car maintenance, fuel, insurance etc?

    Your current maintenance costs are 600 (does this include fuel and insurance?), or 50 a month - your new car wouldn't be that much cheaper.

    The figures don't really support it thus far. Of course I have had to make some assumptions, for more accurate advice you could complete an SOA but its up to you.
    • icklesarge
    • By icklesarge 6th Aug 18, 5:17 PM
    • 6 Posts
    • 4 Thanks
    icklesarge
    No I have other savings that are for a deposit on a house in the future, and I have surplus income. The 250 would be on finance repayments only, I can afford that and still save for my deposit. I don't spend money on anything else really, other than my child.

    The 600 figure is only on car maintenance. (MOT/When it breaks down)
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