Help & Advice

Can i have a car loan if i already have a personal loan?

I have taken out a £15000 personal loan for home improvements. But i need car finance to get a car. I am keeping to all my repayments on my current loan. Can i obtain car finance?

Sandeep


Answer

Hi Sandeep, yes - this is completely possible. If anything the personal loan will strengthen your credit rating if you keep all the payments up to date.

I take it you have a UK licence and are on the electoral roll at your current address? Also do you have a deposit of any kind and how much are you after? Car finance is very similar to a personal loan anyway. The loan is just secured on the car when you take out car finance.

So, basically if you don't pay your repayments on time the finance company can come and take the "asset" (your car) away. With a personal loan this isn't possible as it isn't secured against anything and you could have used the loan for multiple purposes.

Please make an application when you're ready and email me the reference number. Kind Regards, Rachel

Answer correct as of September 2016

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Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

Representative example:

Borrowing £7,500 over 4 years with a representative APR of 27.4%, an annual interest rate of 27.4% (Fixed) and a deposit of £0.00, the amount payable would be £246.43 per month, with a total cost of credit of £4,328.83 and a total amount payable of £11,828.83.

Rates may differ as they are dependent on individual circumstances. Subject to status.

CarFinance 247 is a broker and not a lender

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Rachel Wilson, Underwriting Manager

Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

Representative example:

Borrowing £7,500 over 4 years with a representative APR of 27.4%, an annual interest rate of 27.4% (Fixed) and a deposit of £0.00, the amount payable would be £246.43 per month, with a total cost of credit of £4,328.83 and a total amount payable of £11,828.83.

Rates may differ as they are dependent on individual circumstances. Subject to status.

CarFinance 247 is a broker and not a lender

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