Obtaining Credit

[asbo]

Evening all,

Now I know it's been talked about non-stop for the last six months, so apologies if this is a sort of repost.

How easy is it to obtain credit at the moment?

I'm looking to finance a car purchase (hopefully a CSL) come the summer time as I'm fed up forking out repair bills for old German supersaloons. To that effect, I'll be in need of around £20k on top of the £6-8k I'll have as a deposit. I can justify up to £800 a month in order to re-pay quickly. I'm self-employed with an income of ~80k.

Can anyone offer any tips as to how I can get a decent rate - if a loan at all? I had wondered whether obtaining credit through my buisniss would be a better option - if it's an option at all. I am a bit of a novice to all this so any advice much appreciated.

Ta.

[s3fella]

You can get it but it is not that cheap and being sefl employed may limit your options. The problem with advice like this is that in the summer, things will be very different on loans, rates availability etc.
You really are best in exploring the dealer options nearer the time, an concentrating on getting as much depostit together as possible. You may also want to consider a PCP or leasing arrangment ona newer car, as car values are so turbulent at present.

Make sure all your accounts and self certificates are up to date for your application too and that your credit file is as strong as possible, it helps if you have some up to date credit cards that you are using at the time of your application!

[Piginapoke]

Definately do nou use Dealer finance as the entry and exit fees will hurt. Use your Bank, shop around, should be able to get <7% APR without too much bother. The fact you are self employed doesnt matter as long as you have a decent credit score.

[asbo]

Cheers 'fella.

What do you mean by 'up to date credit cards'?

Cayman S and E92 M3 are also on the shopping list but I really would love a CSL.

[Pork]

For me, I'd be speaking to my bank. I've (supposedly) got a great credit record (especially when the bank is trying to sell me something!) and would say c7% is optomistic, even at the mo.

g/l getting the CSL, crackin' car.

[Stang]

First port of call....

Credit Check
Financial Advisor


Words I am sure I have said before although it must have fired in one ear and out the other.

Also if it is a new business you have then finance companies might like you to be trading for a bit longer. I could not even get an iphone on business contract due to the short time I was trading.

[asbo]

Stang said:

First port of call....

Credit Check
Financial Advisor


Words I am sure I have said before although it must have fired in one ear and out the other.

Also if it is a new business you have then finance companies might like you to be trading for a bit longer. I could not even get an iphone on business contract due to the short time I was trading.

Happy new year. I hope you had a good one?

Done both of the above, and my finance advisor is confident, but then again he would say that or else he'd be out of a job!

[Stang]

asbo said:

Stang said:

First port of call....

Credit Check
Financial Advisor


Words I am sure I have said before although it must have fired in one ear and out the other.

Also if it is a new business you have then finance companies might like you to be trading for a bit longer. I could not even get an iphone on business contract due to the short time I was trading.

Happy new year. I hope you had a good one?

Done both of the above, and my finance advisor is confident, but then again he would say that or else he'd be out of a job!

I actually managed a very good new year Sir, I trust you had the same. Although the prospect of going back to work after having 6 weeks off is slightly sad. But hey ho v-power and my lifestyle does not pay for itself.

Well if the finance advisor is confident and your credit check it good you have nothing to worry about. Just check the rates although the more loan apps you go for the worse it could be (I think) as I am sure it's like insurance... they keep info on all applications you apply for. I don't think I would fire it against a business if I had the choice. I like being able to sleep at night.

[s3fella]

The credit card thing I mean is if you are the same person, same circumstances etc, and have no credit cards, or none that you currently are using, your score will be owrse than if you have some small balances on currently regularly used cards that you pay each month! Weird, as people think that no credit would give a better score than having cards with maybe 30k of limit unused on them (that you could spend tomorrrow), but in this day and age, people without any credit make the lenders nervous!

[Simpo Two]

Can't you find £20K out of the £80K you earn? Borrowing money will only cost you more.

[Merlot]

asbo said:

Evening all,

Now I know it's been talked about non-stop for the last six months, so apologies if this is a sort of repost.

How easy is it to obtain credit at the moment?

Well, I applied for a new credit card the other day. Did it to balance transfer a smallish £2.5k debt which I could pay off, but the money is in an 8% fixed savings account so provided credit is free/low is worthwhile me doing it. I had an instant decision online and a credit limit offered of £22k which is about my annual salary (seems way to high). Needless to say I accepted the card, but requested a more sensible limit of £4k instead.

[asbo]

Simpo Two said:

Can't you find £20K out of the £80K you earn? Borrowing money will only cost you more.

Not when a large percentage of my monthly income is tied up with the mortgage and savings plans no.

[asbo]

Merlot said:

asbo said:

Evening all,

Now I know it's been talked about non-stop for the last six months, so apologies if this is a sort of repost.

How easy is it to obtain credit at the moment?

Well, I applied for a new credit card the other day. Did it to balance transfer a smallish £2.5k debt which I could pay off, but the money is in an 8% fixed savings account so provided credit is free/low is worthwhile me doing it. I had an instant decision online and a credit limit offered of £22k which is about my annual salary (seems way to high). Needless to say I accepted the card, but requested a more sensible limit of £4k instead.

Where did you go for this out of interest?

[asbo]

A wee bump for the daytime massive...

[Merlot]

asbo said:

Merlot said:

asbo said:

Evening all,

Now I know it's been talked about non-stop for the last six months, so apologies if this is a sort of repost.

How easy is it to obtain credit at the moment?

Well, I applied for a new credit card the other day. Did it to balance transfer a smallish £2.5k debt which I could pay off, but the money is in an 8% fixed savings account so provided credit is free/low is worthwhile me doing it. I had an instant decision online and a credit limit offered of £22k which is about my annual salary (seems way to high). Needless to say I accepted the card, but requested a more sensible limit of £4k instead.

Where did you go for this out of interest?

Tesco.

[anonymous-user]

Simpo Two said:

Can't you find £20K out of the £80K you earn? Borrowing money will only cost you more.

If he is a sole trader he will be able to claim the interest back if the car is for business use.

[smartie]

Dave_ST220 said:

Simpo Two said:

Can't you find £20K out of the £80K you earn? Borrowing money will only cost you more.

If he is a sole trader he will be able to claim the interest back if the car is for business use.

he only gets tax relief on the interest, and then only the proportion attributable to business use.

[Vron]

Merlot said:

asbo said:

Merlot said:

asbo said:

Evening all,

Now I know it's been talked about non-stop for the last six months, so apologies if this is a sort of repost.

How easy is it to obtain credit at the moment?

Well, I applied for a new credit card the other day. Did it to balance transfer a smallish £2.5k debt which I could pay off, but the money is in an 8% fixed savings account so provided credit is free/low is worthwhile me doing it. I had an instant decision online and a credit limit offered of £22k which is about my annual salary (seems way to high). Needless to say I accepted the card, but requested a more sensible limit of £4k instead.

Where did you go for this out of interest?

Tesco.

I take it that offer with Tesco at 8% was a few years ago??

[bigbubba]

Piginapoke said:

Definately do nou use Dealer finance as the entry and exit fees will hurt. Use your Bank, shop around, should be able to get <7% APR without too much bother. The fact you are self employed doesnt matter as long as you have a decent credit score.

What entry and exit fees?

There are no early repayment penalties that apply if that is what you are talking about? - Some bank loans have these.

There are acceptance fees normally in the region of £300, but if that is going to 'hurt' then I don't think the OP would be able to afford £800 pcm.

Dealer finance is easier to get than a bank loan as it is a secured loan.

OP; You do not need to go through the business if you are just concerned about it being a stronger bet for acceptance.

I am the am the Assistant Group Manager of Finance and Insurance at one of the largest family owned motor groups in Europe. If you need any help just PM me and I will point you in the right direction.

Bubba

[Merlot]

Vron said:

Merlot said:

asbo said:

Merlot said:

asbo said:

Evening all,

Now I know it's been talked about non-stop for the last six months, so apologies if this is a sort of repost.

How easy is it to obtain credit at the moment?

Well, I applied for a new credit card the other day. Did it to balance transfer a smallish £2.5k debt which I could pay off, but the money is in an 8% fixed savings account so provided credit is free/low is worthwhile me doing it. I had an instant decision online and a credit limit offered of £22k which is about my annual salary (seems way to high). Needless to say I accepted the card, but requested a more sensible limit of £4k instead.

Where did you go for this out of interest?

Tesco.

I take it that offer with Tesco at 8% was a few years ago??

Huh? No, the credit card I applied for was with Tesco. Was that not the question?

The 8% Fixed account is a withdrawn product from First Direct, taken out in June (?) last year.