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Edwin Miles. Underwriting Manager

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Declined for car finance at CarLoan4u

Hi, I recently went to Car Loan 4 U and got rejected for a £5k loan (no deposit - over 4 years). Being self employed my salary can fluctuate, but I can guarantee £1000 in cash goes into my bank every month. I have put down a deposit of £75 on a car worth £9000 (VW Passatt Diesel) including additional warranty and retail price protection. I am now in a position of raising finance and can make a deposit contribution of £3500 cash plus my trade in of my current vehicle totaling £4000 towards a new vehicle. I need to finance a further £5000.

An additional point to make - changing my car will reduce my motoring expenses by £140.00 on fuel and around £40.00 monthly on maintenance as servicing is included for 2 years. There is no evidence of Car Loan 4 U searching my credit file. My Equifax report returns FAIR or AVERAGE credit score of 410. I have never defaulted, neither do I have anything outstanding – however I have missed occasional payments and exceeded credit limits on occasions.

Based on our high deposit and slow depreciating choice of vehicle, in your opinion do we stand a good chance of obtaining credit? I am reluctant to apply if we will be rejected and further harm our credit score. Many thanks

Posted by Daniel on

Answer.

Hi Daniel, thank you very much for your detailed question and i'm glad to say that we have a different lending panel than Car Loan 4 U so with such a large deposit i'm reasonably confident we can get you approved for the £5000 that you need.

This is as long as you can you prove your income with 3 months bank statements. Also, are you on the electoral roll and do you have a full UK licence? If so, please make an aplication when you can and if approved we provide a no obligation quote and you can buy your car from any dealer in he UK. Kind Regards, Edwin

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Question.

I am a teacher, earning £34000 per year and have been refused car finance from Carloan4U. I have a poor credit history due to some old store/credit cards which have been/are being paid off. (The credit limits were £600, £400 and £450 and there is less than that to pay.) I don't want to make a joint claim with my wife as I want to improve my credit rating and I need a new car to get me to work. Can you help? I have seen a car in one of my local dealers but I've seen comments on a review site that says you don't provide finance for car purchases other than from your own stock - is this correct? Regardless, I will need to replace my current car and I have £500 - £750 deposit. Is it worth my time applying; I'd rather carry on with my current car than keep applying and getting turned down. Thanks.

Posted by Pete on

Answer.

Hi Pete, we do have a different lending panel than CarLoan4U and with a deposit of £750 i'm quite confident that we can get you approved for finance.

We also have lenders that help people with poor credit so whilst i can't guarantee an approval we do have a chance.

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, Edwin

Posted by on

Question.

I have been declined by car loans 4u and my bank. My credit score is about 300. I have past settled defaults in 2010 and store cards, catalogues, which are all well under credit limit and bang up to date. I also have a number of contract phones and never have a problem being accepted there. I really need a new car! How can I get approved? I am self employed and have an income of £400 per week.

Posted by Stressed Eric on

Answer.

Hi Stressed Eric, i believe that we have one sub prime lender on our panel that CarLoan4u don't work with so there's a chance we can help. Can you prove your income with bank statements as you're self employed? Do all your earnings go through your account? Lastly, are you on the electoral roll at your current address and do you have a deposit? I also take it you have a full UK licence.

If so, 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, Edwin

Posted by on

Question.

Hi, I am looking to borrow approx £4000. I have a car to part ex worth about £600 and £500 cash. My credit score is 712, I have 1 CCJ value of £250 from 3 years ago and 3 defaults of around the same time valued approx £2500 (I lost my job). I applied 4 months ago to carloans4u and was turned down. It was a joint application with my husband, we have now checked his score and it's very poor due to some missed payments (recession), I work part time with same company for last 2 and half years earning approx £9000 pa. My husband pays the mortgage etc. I do not want to run risk of applying if its going to be turned down as I'm trying to rebuild my credit but in need of new car! Many Thanks

Posted by Traceybh on

Answer.

Hi Tracey, this is a tough question really. We do have one more sub-prime lender on our panel than CarLoan4u and they like to take people on who have deposits so you fit the bill as you have approx £1100 in total towards a £4000 car. As you only work part time you'd have to make a joint application with your husband again. It's your call but without doing a credit check i can't give you a definitive answer i'm afraid. Kind Regards, Edwin

Posted by on

Question.

I've done a recent credit search which showed I was fair. I'm under a debt management team and have been for three years. I recently tried carloans4u which I was declined when looking at a car loan for £8000. What can I do as I am desperate for a change in vehicle?

Posted by Marcus on

Answer.

Hi Marcus, for an £8000 car in your current position you'd need a decent sized deposit. Is this the case? Have you got a part exchange you could use? If not we only have one other lender (different to Carloan4u panel) that may be able to help however, you may not get £8000 - perhaps £6000 maximum - this is dependant upon your credit circumstances and income. Please apply if this is ok. Regards, Edwin

Posted by on

Question.

I recently put a deposit on a vehicle and have been declined by carloan4u, I have 1 settled default for £400 from January, I require a loan for £8300 this is after £250 cash deposit and £1300 px for my current vehicle. My credit score is 607, I have proof of income, however my bank statements show a payday loan from September. It was settled within 2 weeks but this was there reason for the decline. Do I stand any chance with you? Also is your process the same as there's, as I was accepted and given an amount and told to chose a vehicle only to be let down AFTER I had secured the vehicle with a cash deposit?

Posted by Concerned on

Answer.

Hi "Concerned", we do have similar lenders to Carloan4u on our panel but we have one or two more options. Do you know which lender you were approved with and i can check whether this is the case? Payday loans are frowned upon unfortunately by lenders but we;ll try our best to help out. Look forward to your response. Edwin

Posted by on

Question.

Hi I am self-employed and currently only take a wage of approximately £1000 per month.I have an excellent credit rating (with experian) and am looking to buy a car for a maximum of £20,000 but am going to put down a deposit of £5000 so I need £15,000 for my purchase. I have recently been declined finance on the basis that the amount I pay back monthly cannot be more than 25% of the money going into my account. Is this usually the case with lenders and would it be wise for me to show increased income into the bank account before I make a finance application (so as not to harm my credit rating through searches)?Many Thanks

Posted by Beamz on

Answer.

Hi Beamz, thank you for your question. It is hard to say without seeing an application but if you really do have good credit then we could try to get you approved with one of our prime lenders. They only require a copy of your driving licence. However, if you have some missed payments etc then we would be looking to get you approved with one of our near-prime lenders. However such lenders will require proof of income and affordability and if you are only putting £1000 per month in to your bank account then unfortunately this would fail affordability checks for a £15-20k loan.For this kind of advance you would be looking at putting around £3000 each month into your account to prove affordability. I hope this helps, Edwin

Posted by on

Question.

Hi, Im in full time employment and have a steady job. Unfortunately due to redundancies 4 years ago I have a bad credit score which I am slowly rebuilding. Debts consist of 2 credit cards, one with 1,800 and the other with 5,000. The larger is with a debt management company which I have been regularly paying off monthly for the last 2 years. Due to promotion at work I need to buy a car that is reliable and a bit more professional looking and I am looking to get a £7,000 loan. I have a car which I am looking to part exchange which is valued around 2-3k. However Im still concerned that because of my poor credit rating applying for a car finance loan will be declined and affect my credit score. Appreciate any help or advice

Posted by Phil on

Answer.

Hi Phil, apologies for the delayed response. As you're now back on track and have an improved income and a decent deposit i am reasonably confident we can help. I can't guarantee anything as you're still in a DM plan but i'd certainly like to try our best. The balls in you court though. Kind Regards, Edwin

Posted by on

Question.

Hello, I applied through Carloan4U but they would only offer me £5k . If I was successful with you, would I need to take a minimum amount and if so, would it all need to go on the car or could it go on the car and other things like insurance, tax etc? Thanks

Posted by Bernie on

Answer.

Hi Bernie, when we approve you for car finance it is for the car only so it can't be used for insurance etc. We have a different lending panel than carloan4u so there is a possibility that we can get you approved for more than £5000 but this will depend upon your circumstances and income. Please apply when you get a moment. Kind Regards, Edwin

Posted by on

Question.

Hi Edwin, thanks for your response, i'm unsure of what company accepted us as it was done through carloans4u website, I got a call back but there was no point going ahead as the criteria didn't fit the car we want. We are looking for a 2002-2004 with a value of £8000, we have a car but hoping to private sell for £3000, looking to borrow over 2 years £4000 - £5000 depending on what interest rate you can offer. My credit score isn't very good due to a default from a couple years ago which is being disputed, this account has been cleared, dispute notice has been applied, I am in full time employment and have been for the last 6 yrs with the same company, recently promoted to Lead, I've been on electoral register for 21 yrs. All previous cars have been purchased through savings, paid in full with no finance, however this time round I would like to keep some savings in the bank.

Posted by Alison F on

Answer.

Hi Alison, thank you for coming back to me. It's a difficult one as some lenders we deal with do have specific lending criteria on cars they will finance. We do however, have a different lending panel that Car loan 4u. However, as you only want the finance over 2 years i'm confident we could finance a 2005 car - is that a possibility? This means that we can finance an 8 year old car for 2 years to keep the lenders happy. You have a good deposit, stable job and residential history so i'm confident we can work something out :-)

Posted by on

Question.

Hi,

I was accepted recently by CarLoan4U for £6k+ but they wanted me to get a car that was 2008 or newer and under 70,000 miles. I originally only wanted to borrow around £4,500 for a car which was a bit older and higher mileage (but a nice car).

My credit rating by Experian is 375 and have a few missed payments and a couple of defaults. I can afford around a £400 deposit. Can you help? Paul

Posted by Paul on

Answer.

Hi Paul, thank you for your question and we'd love to be able to get you in the car you want.

While our lending panel is similar to CarLoan4U's we do have some lenders on our panel that they don''t deal with, so there is a possibility that we can get you into the car you want at a price you can afford.

It does depend upon who we can get you approved with as all lenders have different criteria on what car they will finance however, i have one in mind that allows people to finance smaller balances for older cars (and they do help people with past issues).

Please make an application when you can and once approved we provide a no obligation quote and you can buy a car from any dealer in the UK. Regards, Edwin

Posted by on

Question.

Hi, I've been accepted through carloan4u for £6000, they told to choose my car, give them the details and they would do the rest.

They have since got back to me saying I can't have that car as the insurance group is too high?! Why would that matter as the insurance would be paid in full upfront so nothing to do with the finance arrangement? Any help would be hugely appreciated. Many thanks, Rob

Posted by Robert Edwards on

Question.

Hi, I have a poor credit rating and am in a DM plan. I have a full time job and take home around £1400 a month that I can prove this via wage slips.

I haven't applied for car finance yet but I'm looking for a loan of around £5000 and I can use my car as deposit of around £2000. Where would I stand if I applied?

Posted by Kieran H on

Answer.

Hi Rob, thank you for your question.

I do know that some lenders will only lend on vehicles below a certain insurance group. I know it sounds silly but this is their set criteria. However, we do deal with different lenders than CarLoan4u do so hopefully we can get you approved with a lender that allows you to choose a car of your choice.

Applying with us won't effect your current approval with Carloan4u so it's worth a go to get the car you want. I take it you have a UK licence and are employed? If so, please make an application here. Kind Regards, Edwin

Posted by on

Answer.

Hi Kieran, thank you for your question.

We do have lenders on our panel that help people in debt management plans and as you have a decent income with a large deposit there should be no reason why we can't get you £5000.

The good news is that you haven't applied elsewhere as having too many credit searches against you name effects your credit score. Please apply now and once accepted we provide a no obligation quote and you can get a car from any dealer nationwide. Kind Regards, Edwin

Posted by on

Question.

Hello, i was accepted with Car Loan 4u then rejected even though i'm in full time employment with £1200 going into my bank every month in Winter and £1600 per month going in Summer! I wanted £7500 putting down a £500 deposit. My credit rating is fair. Can you help? Thank you

Posted by Leslie Ripley on

Answer.

Hi Leslie, thank you for your question.

It does indeed seem strange that you were accepted and then got rejected. What was the exact reason that they gave you?

We do deal with different lenders than Carloan4u so there is a chance that we can secure you the funds you need. You earn enough and have a decent deposit so please apply here when you get a moment. Kind Regards, Edwin

Posted by on

Question.

Hi - I was accepted by carloan4u, found a car, put a deposit down on it, provided all of the documentation, but was then told that because I couldn't prove I was in my property from Nov 2010 they withdrew finance.

I earn over £2k per month (fixed income), but have a bad credit rating, which I was hoping to repair by taking out a car loan. Is it worth me applying to you?

Posted by Jess Winterbottom on

Answer.

Hi Jess, thank you for your question.

All i can say is that we have a different lending panel than Carloan4u so there is a chance that we can get you accepted. We do also have lenders that help people with poor credit and you do have a good income too.

Please make an application when you can and if accepted we provide a no obligation quote and you can buy a car from any dealer. Kind Regards, Edwin

Posted by on

Question.

Hi, I am 20 years of age and I am looking at getting my first car. I need to finance about £6000, have a deposit of £500.

I earn a fixed income which can be proved with bank statements. My credit rating is poor but that's because I've never taken credit out before and I can't have a guarantor as my mum doesn't want the risk to her. I don't want to apply and get rejected. What should I do?

Posted by Edward Dean on

Answer.

Hi Edward, thank you for your question.

You're in a tricky situation because to get credit you need to have a credit check carried out. All i can say is that i'm confident we could help as you are employed, have a deposit and don't have any bad credit as such. I take it you're on the electoral roll and have a full UK licence?

If so, please make an application and once approved we provide a no obligation quote and you can buy a car from any dealer in the UK. Kind Regards, Edwin

Posted by on

Question.

Hi, I have just finished a trust deed and was wondering if I would be able to get credit.

I got into trouble with credit when I was younger and tanked my score. It finished last year. I now have a good job earning circa £1400 a month. I'd also be able to raise a £500-£700 deposit and would be looking for £4500.

I have applied to carloan4u (not had response yet). I need a car as mine just blew its head gasket, Cheers

Posted by Alan B on

Answer.

Hi Alan, thank you for your question.

The good news is that we do have lenders that help people with past credit issues and as you have a decent monthly income and a large deposit i'm reasonably confident we could secure you the £4500 that you need.

Please make an application and once approved you can choose a car from any dealer and we also provide a no obligation quote. Kind Regards, Edwin

Posted by on

Question.

Hello, I have had some credit issues and all but one outstanding have been cleared (the one remaining is being contested).

I have two settled CCJ's that both come off this year and I have been up to date with all other monthly bills for a few years. I earn variable amounts but can get confirmation of £17k income and I am a homeowner.

I am dubious about fishing around to get a £6k loan since obviously these appear on my credit file. Car loans4u have approved me but are now having problems finding a suitable lender. I don't currently have a deposit but can probably raise 10% if needed. What can you suggest?

Posted by Les on

Answer.

Hi Les, thank you for your question.

As you're a homeowner with a decent salary which you can prove i'm confident we can get you the £6000 you need.

If Carloan4u have had you approved in the past then we'll be able to secure you an approval. It seems that you're getting your credit history back on track and the fact you can get a deposit if needed helps too.

Please make an application and once approved you can choose a car from any dealer and we also provide a no obligation quote. Kind Regards, Edwin

Posted by on

Question.

Hi Ed. I'd like to finance a car. Ideally I'd want up to £6000. So, anywhere between £4.5k - £6k.

I am self employed for roughly 10 months now and i take home an average of £1200 a month. I can provide bank statements of this dating from when I started and also payslips.

I have 1 CCJ, which I'm currently disputing. 2 defaults. With 1 old default which I have paid off. The defaults I have are scorecards and a credit card. Store card = £700. Credit Card = £650. I am on the voters register since October last year too.

I have things like 2 contracts, all paid off on time with difference providers for some years now. My credit rating is 1/5 on Noodle. Which tells me that I may have difficulty in obtaining credit, or when I do, it could come with high interest.

I'm not blacklisted or bankrupt. Just some difficult situations I found myself in 2 years ago which has tarnished my credit. What are my chances of getting such loan approved? Also if need be, I can put deposit of £200.

Posted by Kay on

Answer.

Hi Kay, thank you for your question.

From what you have stated i am reasonably confident we can help as you have a good income which you can prove, a small deposit which helps and even though you have defaults they are only for small amounts.

I can't guarantee an approval but the good news is that we do have many lenders on our panel that help people with past credit issues. 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, Edwin

Posted by on

Question.

Hi, I ruined my credit rating a couple of years ago with a few defaults, which are now all under debt recovery plans and are being paid back. I earn just over £1150 a month and can prove that for the past 12 months at least. I was hoping to try and start returning my credit back to normal just in-case I get any jobs in the future which require a credit check.

I would like to borrow around £2000. I have around £800 deposit and would like to pay it back in as short a time period is possible. Would your team be able to help?

Posted by Mark George on

Answer.

Hi Mark, thank you for your question.

The good news is that we can help people with past defaults get finance. We can't guarantee an approval but as you have a steady income, a large deposit & you're paying back your debt i'm confident we can get you £2000.

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, Edwin

Posted by on

Question.

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Posted by Malcolm Reid on

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