Car finance question???

Question

Ive being declined 4 a loan with my bank to reduce my payments on my existing loan because of a few late payments, I've also applied online 4 loans and credit cards out of curiosity but i have now realised it may have left footmarks on my credit score. Would this affect me getting finance on a car that i am looking at for 4,000. I work full time and earn a good wage. Would this be a problem??????

The problem is not the fact i cant pay because i am not short of money, but it is because my payments are sometimes late!

Answer 1

no it shouldnt

Answer 2

You need to stop applying for credit, this affects your credit rating. Do visit Experian and Equifax to see what is exactly wrong with your credit and that there is no other problems except your bank loan.
If everything is up to date and you have a deposit, you may still be able to get a loan linked to your car, however it is now less likely that you will get a good rate. Steer clear of the "sub prime" lenders especially companies like log book loans and welcome finance.
Unfortunatley when you don't pay on time your risk goes up and your rate does too.
If you can't keep up your current loan payments then how can a new credit provider think that you will keep up on a new loan.

Real Question = Can you really afford to buy a new car if you can't keep up your payments on everything else (even though your existing car might cost something to fix up, so might your new one)

Answer 3

Are you say that applying for loans and credit cards may have lowered your score? The only thing I can say is that I have in fact heard that any time you open or close and account or even get denied for credit, that it brings down your credit score. I recently closed my BofA credit card and found that my credit score went down by 7 points. Can't say for sure though that it was the cancellation of my BA credit card, it could have been something else that lowered my score by 7 points. Hope that helps...

Answer 4

If you are so well off as you keep stating why do you need a loan.

The reason why you are being turned down for credit is because you have applied for several forms of credit in a short space of time.

You need to get your repayments organised, then you will not be late making payments
Arrange direct debits to repay the money, then it will be up to the creditor to collect the funds monthly.

Answer 5

The reality is that banks don't like people who are late on their payments.That alone could cause your problem. Your bank is most certainly aware of your online loans and various credit cards. But it sounds like you might be living above your means. Do a simple test. Write down all your assets (as if you were liquidating) and your monthly wages in one column, and then in another column write down all you debts (pay off sum) plus your monthly bills (ex. phone elec.water) If your debts are greater than your assets then you need to seriously consider a cheaper form of transportation.

Answer 6

Someone will always lend you money but dont get sucked into high interest rates for the sake of getting something. Talk to your bank again and explain that you have learnt the error of your ways , they want your money !! If not enquire at another bank or building society . If you are getting refused you have the right to ask why and to know what is messing up your credit score.

Answer 7

The problem is not the fact i cant pay because i am not short of money, but it is because my payments are sometimes late!

Does your bank allow you to set up automatic payments from your account? If not, move your account to the other bank in town. They offer that option.

Answer 8

If you are in Great Britain, yes, it is!! If the car is on finance, it is wholly owned by the finance company, until the debt is totally paid off. Therefore, it cannot be legally sold until the finance is cleared. The law may well be different in the U.S.A., but this is Y!A U.K. and Ireland, after all...

Answer 9

I think so.
Why dont you go to
www.experian.co.uk or
www.equifax.co.uk
and look at your credit score and rating.
If you apply online to have it delivered by post it only costs £2, but more expensive to view online.
Good Luck!

Answer 10

For free consumer information on bad credit auto loans and how to obtain one read http://www.getbadcreditcarloan.info

Answer 11

Yes when you don't pay your bills on time you become known as something called a deadbeat and people in the business of lending money all of a sudden don't want to lend to you. Totally unfair, huh?