First time loan

[randomman]

Hi all,

My missus is looking to get a small loan for a car (£2000, we will discuss the car later!)

She has never had credit before, just an overdraft, which she has never missed a payment on that.

Basically I know the slippery slope once you start getting reject for loans, it makes it bloody hard to get one in the next 6 months.

So does anyone know a loan company thats pretty easy going on people new to credit? (I dont mean someone like Yes! who seem proud of their 48% apr) as she would like to get it right first time.

Cheers all

[andyquantum]

Speak to the bank first, might drop lucky with a decent rate. They're more likely to lend the money in the first place if she's been with them a while. £2k's not a lot for some of them, it might be worth seeing how much overdraft is available

[Vee]

Speak to her own bank.

[ALawson]

Why not just by a banger and save up? There are some pretty good motors out there for £500!

You could try the normal places A&L, Northern Rock etc they usually have good deals on or look here http://www.moneysavingexpert.com/cards/

[randomman]

Bank is on the cards, and probably will be, but she hasn't been there very long (6 months ish) and I dont want them being a hard-arse about it

[james_tigerwoods]

A 2k loan will have a pretty high interest rate as there's not much incentive for the bank to loan you that money - Much as it pains me to suggest this - have you looked in to getting a bigger loan, say £5k over a longer period and get a better, probably more reliable, car?

The repayments will be longer, but a £5k car might be money better spent than a £2k car.

[215cu]

Speak to her bank as she will have a rating there on what type of customer she is. Credit reference is something of a catch-22, can't get credit with no history of credit.

If she wants a a couple of grand, don't talk her into more.

A loan for a car and house is de-rigeur, I would imagine the bank would be happy to at least talk, don't expect a low rate though, they are normally for larger sums of money.

[JDMTim]

Is there no chance of saving over a few months rather than borrowing 2k?

I'm not adverse to credit at all, but for such a small amount the APR you'll pay is daft!

[GreatGranny]

You can obtain your credit rating free through Experian. You can sign on for 6 months free I think but remember to cancel it before the 6 months or else there is a charge.