Why can't I get a car loan/finance?

Question

In the last couple of weeks I have decided to buy a new car problem is I dont qualify for a loan or finance and I cant understand why. I have clear credit Ive never had loans before, I have a full time permanent job and I rent my house, my wage would be ok and I can definatley make repayments???

Any civilised suggestions will be welcome, please do not comment if you cannot help. Thanks
Ps I live in Ireland

Answer 1

The fact that you've never had a loan or finance before could be your stumbling block. Many of these loans work on a Credit History basis.



- The problem with having no credit history is that the lender has no means to measure the risk involved in lending to someone with no credit history. Unless you can provide some other larger asset that is owned by yourself as collateral besides the car, the lender is incapable of establishing the loan amount they can grant, the interest rate they will charge and the number of instalments or loan length.

- However, every lender has a 'perfect customer' list so if you are rejected by one this isn't a problem as your not necessarily going to be rejected by another! So keep trying on the loan front!

- To resolve the credit problem maybe, if you don't have one already, open a savings account with a bank and if possible a checking account too, this will contribute to your credit history building process. Since any transactions made with this accounts will be recorded and reported to credit agencies.

- The only other suggest could be check your credit rating? Sign up to Equifax http://www.equifax.co.uk/Products/credit/statutory-report.html or Experian http://experian.co.uk/consumer/statutory-report.html

Check your report carefully to see if there are any issues! Stupid things like forgotten mobile phone contracts or utility bills can all factor!

Hope this helps

Answer 2

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Answer 3

The banks in Ireland have tightened their belts. In doing so they have probably made it harder to get loans. How is your relationship with your financial institution? Do you know the manager and lending officers etc? Have you had bounced cheques or other financial problems in the past that would shed a minor black mark against you? If not and your finances are good all through then maybe talk to the bank or other financial institution as to what the requirements are for getting a loan for vehicles and other things. This can't hurt and may make you aware of how tight money is with the banks. At least you'll know what you have to do to get a loan and can plan accordingly.

Answer 4

there could be a number or reasons, because youve never had a loan the banks dont know how reliable you would be on repaying the loan over the agreed terms. it sucks but you would be more likely to get a car loan if you had a previous loan or were repaying a loan now - its like a track record.



best idea - leave it for 6 months (too many footprints on your credit check will go against you) before re-applying, request from the likes of experian (free for a few months online) your full credit report, this will show you if there are any anomolies on your report - eg your partner who has their mail sent to your house could be blacklisted - although it shouldnt count, they can sometimes use anything to refuse loans) as soon as you can, if there is anything wrong with your report, write away to them and get it updated.



then I would go for a credit card - capital one on say £250 limit, this will mean you can use it once a month (for petrol or a small shop) and pay it straight off again, this is building your score. If you owned your house, rather than rented, that would make the difference, you at present have nothing as insurance if you dont pay....



i never had any loans or cards and nearly had to pay in blood to get a credit score going, started with a cap 1 card, now Im on Platinum RBS with a £10k limit. (which I dont use lol)

Answer 5

I recommend avoiding finance companies altogether in any case. The interest rate attainable through a bank loan will be better (cheaper) than that of the finance company, who need to make enough money from you in the first 50% of the finance term to cover the potential loss they would otherwise make if you exercise your right under the consumer credit act to terminate your agreement (hand the car back) after 50% of your finance term.



Having never had taken out credit can work against you too in that you have no credit history on which to base a decision.



Your best course of action would be to approach your bank manager and talk the issue over with them.

Answer 6

The absolutely free reverse vin check sites generally provide fake information. To get real information, money will have to be paid. The free searches provide fake information so they can get your email address to send spam.



Stay away from shady reverse vin check sites, most likely you won't get any information after you make the payment. Not to mention you won't get a report and you won't get an answer if you try to call for a refund. Stick with a reputable reverse vin check site like http://www.reversevincheck.net that has been around since 1995.

Answer 7

You need to make a choice between an unsecured car loan and a secured car loan contact BankBazaar for more information http://www.bankbazaar.com/car-loan.html

Answer 8

Don't worry about it. Just remember that Obama said he will "give" us everything. You don't have to get a loan for a car. You don't even have to work to pay it off. Obama will just "give" it to you. And also remember that the media just blamed Republicans for the "foreclosure crisis" on homes. Do you really trust Republicans enough to get a car loan from their banks? Best thing is wait for Obama to "give" you a car...!

Answer 9

Are you in need of an urgent loan, either for personal or business purpose, look no further contact [e-mail] to obtain a decent loan of 2% interest rate.



www.ericsonfinance.com

Answer 10

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