Applying for a loan at 19
Discussion
Hi all,
Looking to change my car next month. Everyone my age seems to go down the finance route however I don't want the finance to be tied to the car.
I've had a loan in the past albeit only for 2.5k, that loan was paid off this month. I've got a load of monthly direct debits I pay as well, phone contract, netflix, road tax etc.
I checked my credit rating on experian - 975. I'm not sure if this is because I haven't had much credit before or because I haven't missed a payment on the credit I have had.
I compared loans on one of the big comparison sites, one big name in particular came out on top (Hint - they also do insurance). They didn't have the lowest APR but they did have the best chance of accepting me compared to the others.
I applied for a loan with them on Monday, and haven't heard anything back. Their site says I should have recieved a decision within a day, so I'm starting to get worried that theres an issue and I'm likely to be rejected.
Anyone been in a similar situation? Or have any advice for someone of my age looking for a loan?
Cheers
Looking to change my car next month. Everyone my age seems to go down the finance route however I don't want the finance to be tied to the car.
I've had a loan in the past albeit only for 2.5k, that loan was paid off this month. I've got a load of monthly direct debits I pay as well, phone contract, netflix, road tax etc.
I checked my credit rating on experian - 975. I'm not sure if this is because I haven't had much credit before or because I haven't missed a payment on the credit I have had.
I compared loans on one of the big comparison sites, one big name in particular came out on top (Hint - they also do insurance). They didn't have the lowest APR but they did have the best chance of accepting me compared to the others.
I applied for a loan with them on Monday, and haven't heard anything back. Their site says I should have recieved a decision within a day, so I'm starting to get worried that theres an issue and I'm likely to be rejected.
Anyone been in a similar situation? Or have any advice for someone of my age looking for a loan?
Cheers
Hammy98 said:
Hi all,
Looking to change my car next month. Everyone my age seems to go down the finance route however I don't want the finance to be tied to the car.
I've had a loan in the past albeit only for 2.5k, that loan was paid off this month. I've got a load of monthly direct debits I pay as well, phone contract, netflix, road tax etc.
I checked my credit rating on experian - 975. I'm not sure if this is because I haven't had much credit before or because I haven't missed a payment on the credit I have had.
I compared loans on one of the big comparison sites, one big name in particular came out on top (Hint - they also do insurance). They didn't have the lowest APR but they did have the best chance of accepting me compared to the others.
I applied for a loan with them on Monday, and haven't heard anything back. Their site says I should have recieved a decision within a day, so I'm starting to get worried that theres an issue and I'm likely to be rejected.
Anyone been in a similar situation? Or have any advice for someone of my age looking for a loan?
Cheers
I would think that your own bank may be a good bet........as they will be able to check your account conduct that other providers would not be able to do.....Looking to change my car next month. Everyone my age seems to go down the finance route however I don't want the finance to be tied to the car.
I've had a loan in the past albeit only for 2.5k, that loan was paid off this month. I've got a load of monthly direct debits I pay as well, phone contract, netflix, road tax etc.
I checked my credit rating on experian - 975. I'm not sure if this is because I haven't had much credit before or because I haven't missed a payment on the credit I have had.
I compared loans on one of the big comparison sites, one big name in particular came out on top (Hint - they also do insurance). They didn't have the lowest APR but they did have the best chance of accepting me compared to the others.
I applied for a loan with them on Monday, and haven't heard anything back. Their site says I should have recieved a decision within a day, so I'm starting to get worried that theres an issue and I'm likely to be rejected.
Anyone been in a similar situation? Or have any advice for someone of my age looking for a loan?
Cheers
Hammy98 said:
I checked my credit rating on experian - 975. I'm not sure if this is because I haven't had much credit before or because I haven't missed a payment on the credit I have had.
I would take zero notice of this - credit scores given by the credit scoring agencies are pointless. All lenders have their own scoring criteria and use the agencies for information, to see what kind of person you are in terms of credit, but they do not get to see the credit score. Monday was a Bank Holiday. 
. And Friday was also a holiday.
So the back office will be sorting through 4 days of applications from Tuesday morning. (Technically 5 days as last Thursday was a wind down day to the long weekend and most junior clerical workers will have been on the internet talking about their weekend plans)
In addition, a number of staff will have taken week long holidays either side of the Bank Holiday so the back office will be short staffed.
And on top of that a significant number of junior back office workers will have pulled sickies yesterday due to drinking too much over the weekend or taking too many drugs and just being a bit too tired to face a days work.
Then to cap that, the managers will be prioritising editing their list of which juniors won't be getting a bonus, pay rise, promotion etc just at the moment while also fending off hundreds of calls from the front office asking them why they haven't got a f
king grip on their department and insist on repeatedly hiring useless wasters. 
. And Friday was also a holiday. So the back office will be sorting through 4 days of applications from Tuesday morning. (Technically 5 days as last Thursday was a wind down day to the long weekend and most junior clerical workers will have been on the internet talking about their weekend plans)
In addition, a number of staff will have taken week long holidays either side of the Bank Holiday so the back office will be short staffed.
And on top of that a significant number of junior back office workers will have pulled sickies yesterday due to drinking too much over the weekend or taking too many drugs and just being a bit too tired to face a days work.
Then to cap that, the managers will be prioritising editing their list of which juniors won't be getting a bonus, pay rise, promotion etc just at the moment while also fending off hundreds of calls from the front office asking them why they haven't got a f
king grip on their department and insist on repeatedly hiring useless wasters. DonkeyApple said:
...
Then to cap that, the managers will be prioritising editing their list of which juniors won't be getting a bonus, pay rise, promotion etc just at the moment while also fending off hundreds of calls from the front office asking them why they haven't got a fking grip on their department and insist on repeatedly hiring useless wasters.
You sound like you may have knowledge of this... Then to cap that, the managers will be prioritising editing their list of which juniors won't be getting a bonus, pay rise, promotion etc just at the moment while also fending off hundreds of calls from the front office asking them why they haven't got a f
king grip on their department and insist on repeatedly hiring useless wasters. TheAngryDog said:
I would take zero notice of this - credit scores given by the credit scoring agencies are pointless. All lenders have their own scoring criteria and use the agencies for information, to see what kind of person you are in terms of credit, but they do not get to see the credit score.
Lenders DO see an individuals credit score, as well as the underlying characteristics that make up that score (number of searches, arrears history etc). The only thing hidden from the lenders is how that score was generated (i.e. the factors and coefficients in the scorecard).I'd ring them and chase
Age is against you, guess you don't own your own home, don't have much evidence in managing credit agreements which all turn a cheap lender off. These will be significant components of their scorecards
A better option might be to get a 0% credit card which allows transfers to your bank - obviously this depends on the sums you are looking to raise.
Also, if you are buying a car, why do you not want it to be tied to the asset? You will have a higher probability of getting accepted if there is security underpinning it (car).
Age is against you, guess you don't own your own home, don't have much evidence in managing credit agreements which all turn a cheap lender off. These will be significant components of their scorecards
A better option might be to get a 0% credit card which allows transfers to your bank - obviously this depends on the sums you are looking to raise.
Also, if you are buying a car, why do you not want it to be tied to the asset? You will have a higher probability of getting accepted if there is security underpinning it (car).
Edited by dogz on Thursday 20th April 22:55
dogz said:
I'd ring them and chase
Age is against you, guess you don't own your own home, don't have much evidence in managing credit agreements which all turn a cheap lender off. These will be significant components of their scorecards
A better option might be to get a 0% credit card which allows transfers to your bank - obviously this depends on the sums you are looking to raise.
Also, if you are buying a car, why do you not want it to be tied to the asset? You will have a higher probability of getting accepted if there is security underpinning it (car).
I've realised age is a huge factor in this, I put all my details onto a loan comparison site and the majority had me on a 50/50 chance of being accepted - due to my age.Age is against you, guess you don't own your own home, don't have much evidence in managing credit agreements which all turn a cheap lender off. These will be significant components of their scorecards
A better option might be to get a 0% credit card which allows transfers to your bank - obviously this depends on the sums you are looking to raise.
Also, if you are buying a car, why do you not want it to be tied to the asset? You will have a higher probability of getting accepted if there is security underpinning it (car).
Edited by dogz on Thursday 20th April 22:55
My reason for not wanting the loan to be tied to the asset is flexibility, if I decide I need a change I can trade it in without dealing with finance companies as I'm the owner and registered keeper.
Also means that should the worst happen and I lose my job in a couple of years, I can sell the car and pay off the remainder of the loan.
If you're looking for more opinions then you'll have to give us the figures. Total loan amount, length of loan and whether you would intend to pay it off early or not... And a rough idea of the car so we know how much depreciation is likely vs the full loan amount.
Some here will never use credit. Some have a benchmark so long as it makes sense financially. Some will accept at whatever APR!
Some here will never use credit. Some have a benchmark so long as it makes sense financially. Some will accept at whatever APR!
Hammy98 said:
Good news! Got an email this morning telling me I've been accepted - albeit with 8% Apr.
Parents think 8% is a bit ridiculous, but colleagues are telling me to bite their arm off due to my age... any opinions?
Offer your parents a better rate than they are getting on their cash or offer them a 2% premium over what they can borrow at. Parents think 8% is a bit ridiculous, but colleagues are telling me to bite their arm off due to my age... any opinions?
8% is ridiculous in some regards but it is unsecured and your lender doesn't know who the hell you are. Your parents on the other hand would know exactly who they are lending to and also have security so would be able to lend to you at under 4%.
Jaska said:
If you're looking for more opinions then you'll have to give us the figures. Total loan amount, length of loan and whether you would intend to pay it off early or not... And a rough idea of the car so we know how much depreciation is likely vs the full loan amount.
Some here will never use credit. Some have a benchmark so long as it makes sense financially. Some will accept at whatever APR!
Mini Cooper S - 14 plate, 12k miles. - £14500Some here will never use credit. Some have a benchmark so long as it makes sense financially. Some will accept at whatever APR!
Trading in a Citroen DS3 - WBAC value £5200, expecting £5000 trade in.
Loan amount is £9500 over 26 months - £400 a month.
I really dont have much outgoings with the exception of my car and insurance, so would probably manage to pay £550ish every second month or so.
DonkeyApple said:
Mixing chips with piss here but that is an absolutely moronic amount of money to be spending on a completely generic wagon at the age of 19. Assuming typical income levels of that age group and the lack of a trust fund.
I've been through 2 cars in the last 18 months, both of which I've had to change due to reliability issues. Theres lots of older cars I'd like which are priced a bit more reasonably, but I can easily rack up 300 miles a week so I'm going to go for a newer car with warranty this time round. My current car is a 1.6T so I don't want a step down in performance. I can get the mini with 3 years warranty and servicing for the 400 a month, and the only other costs would be insurance, petrol, mot and tax. Then when its paid off in 2 years I'll have a paid for car with a years servicing and warranty still left over. I'd rather spend this kind of money on a car now while my outgoings are low and I'm living at home, than in a few years when I'm looking to move out.
Just for comparison, majority of people my age have A1s, Polo Gtis, BMWs, Merc A classes - all leased. At least in this situation I'll pay maybe £100 a month more than them, and get to keep the car.
DonkeyApple said:
Offer your parents a better rate than they are getting on their cash or offer them a 2% premium over what they can borrow at.
8% is ridiculous in some regards but it is unsecured and your lender doesn't know who the hell you are. Your parents on the other hand would know exactly who they are lending to and also have security so would be able to lend to you at under 4%.
My initial thought was to borrow from my parents as I did this last time around. However this time they'd like me to take care of it myself, so said they'd be willing to guarantor me - which it turns out isnt required - however wouldn't lend me the money.8% is ridiculous in some regards but it is unsecured and your lender doesn't know who the hell you are. Your parents on the other hand would know exactly who they are lending to and also have security so would be able to lend to you at under 4%.
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