Car loan for friend with no credit history
Discussion
Their bank may be a good place to start as they will hold information on them already. It might also work out cheaper to borrow a bit more, loans under £7.5k tend to be pretty expensive. The alternative is to get a credit card with a low limit, use it for petrol and food shopping and pay it off every month for a year to build some credit history.
Thanks.
His bank has said no, doesn't fit into their lending criteria.
Started new job so needs to get a car pretty quick hence doesnt have 6 months to build up credit file by paying off a credit card etc.
I didn't know if anyone knew of a lender who specialised in this type of risk profile?
His bank has said no, doesn't fit into their lending criteria.
Started new job so needs to get a car pretty quick hence doesnt have 6 months to build up credit file by paying off a credit card etc.
I didn't know if anyone knew of a lender who specialised in this type of risk profile?
jonamv8 said:
Performed a credit check on my mate to help him find a suitable car loan for 7k.
NODDLE:
We don't hold enough data to create a credit file.
Any ideas on a lender who may be suitable for this criteria that won't charges 49% APR !
Look at it from the lender's PoV. They've got Johnny Random turn up, and they can't find any info on whether he's safe to lend to or not. Why not...?NODDLE:
We don't hold enough data to create a credit file.
Any ideas on a lender who may be suitable for this criteria that won't charges 49% APR !
All the mainstream lenders are going to raise their eyebrows, and find a safer punter - so he's left with the "Soddit, let's take a punt, but it'll cost you" sub-prime lenders.
His choice is a fairly simple one - find an outfit outside of the mainstream lending industry who will take a punt at a rate he doesn't run screaming from, find a mate to lend it him personally, buy what he can actually afford, or build a credit history and try again.
Some Gump said:
Why not get a 2k car instead?
+1
If people have not had experience of using an old car every day, they seem convinced that anything out of warranty is about to breakdown.
Although I have something special to use as an occasional 'toy', my daily cars have always been old, and have never had reliability issues. Have just demoted a 22 year old (no aircon) which has been faithful for 15 years, to garden rubbish removal, and am now regularly using a 17 year old. Have owned that car since it was 5 years old, now of negligible value, but it has never missed a beat and is a delight to travel in.
A good 7k car with debt, might be no better than a good 2k car without debt.
Remember also, a 7k dealer car can be bought at auction for 4.5k by private buyers.
I know, because I bought one. It was just 14 months old with nearly 2 years warranty remaining.
OP your mate needs to cut his cloth to suit. I have just searched ebay for Honda civics (as an example) and there are buckets of them for sub £1k. I did probably close to 100,000 miles in similar cars when I was a touch younger with very few problems.
Alternately he would get a new 125cc bike for £99 a month or so.
Alternately he would get a new 125cc bike for £99 a month or so.
Edited by Chainsaw Rebuild on Wednesday 30th August 21:48
James_B said:
Yes, there are lenders. Their prices reflect the risk, and he'd be a fool to use them.
If and when he asks if you'll be a guarantor for an Amigo loan, please don't say yes. The legal situation is that you'll owe the money when he fails to pay, and it'll be at 50% APR, rather than the 5-10% that you'd get from a normal lender.
hahaha Don't worry I would never do that! But thanks for caring!!! We are re-thinking the situation for him.If and when he asks if you'll be a guarantor for an Amigo loan, please don't say yes. The legal situation is that you'll owe the money when he fails to pay, and it'll be at 50% APR, rather than the 5-10% that you'd get from a normal lender.
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