Help & Advice

Personal loan for car purchase

Hi there, I am looking into purchasing a car on finance in the near future. My credit score is around 828 - I rent a house and have direct debits going out of my bank for my credit agreements.

I'm not too worried about getting the finance sorted but me and my girlfriend are wanting to get a personal loan soon for around £5k. Would this ruin my changes of getting a car on finance?

Richard C


Answer

Hi Richard, a great question and apologies for the delayed response.

Are you thinking of applying for the personal loan and hire purchase at the same time? You seem to have a good credit score so as long as you can prove your income showing that you can afford both loans then i don't see the personal loan as being an issue. What will the personal loan be used for?

Also how much are you looking to finance when purchasing your next car and do you have a deposit or a part exchange? Please make an application and once approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Answer correct as of September 2016

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In this illustration your credit score is set to

Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

We compare products from 18 of the UK's top lenders to get you the best deal.

Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

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More related questions

Hi again, well we are wanting to get the loan now for home improvements and then get the car Finance around September time. I will be looking to get a car for £5500 and should have £700 deposit to put down. We can prove our income as well & between us we earn around £32000 per annum so hopefully this should look good for us?

Answer

Hi Richard, from what you've said we'd be able to help with no problems at all. As long as you're paying the personal loan monthly payments off on time before applying for car finance that'll look good on your credit profile to be honest and shows lenders that you're a "safe bet" when lending large amounts of money too. I look forward to your application in the future. Regards, Rachel

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Hi
I'm thinking of a car finance. I would like to spend £6000 because my job now requires me to drive around to visit clients. My credit score is currently 765. What are the options?

Answer

Hi Lamine, thank you for your question.

You have very good credit and a regular income which is an excellent start. We may be able to help you!

Please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

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Rachel Wilson, Underwriting Manager

Set your budget

£
4 years

In this illustration your credit score is set to

Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

We compare products from 18 of the UK's top lenders to get you the best deal.

Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

CarFinance 247 is a broker and not a lender