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Thread: Financial advice needed!

  
  1. #1
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    Financial advice needed!

    Right, my car and car finance is costing me a fortune every month at the moment and as a result im finding myself heavily in my overdraft every month.

    Im on ok money at my job yet im spending £270 on fuel a month going to work etc minimum, as well as a fairly high finance payment and atm i have all the normal bills coming in for a car, tax, service,insurance, 4 new tyres.

    Now i wish to get a bank loan to clear my finance and hence give me lower repayments each month as well as pay for the insurance etc, as i would still be better off.

    Now i was wondering (finally) if the fact that im always in my overdraft will affect a loan decision much? i have a credit score of 999 and never missed a payment or exceeded my OD. yet last time i applied last year i was turned down and obv dont want this to happen again.


    Many thanks all

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    best bet speak to your bank to begin with, they know your finances better than most and may have offers your preselected for, meaning no real application so you don't have to worry about declines etc.

    being in your overdraft won't make a massive difference but going over it will, if you spend alot of the month overdrawn but go into credit when paid and stay in credit a while this looks alot better than being overdrawn 100% of the month,

    i'd just go into a local branch of your bank (they will be less likely to be honest with the liklyhood of being declined over the phone and just ask what are the chances) the bank i work for could tell you in 30 seconds along with payments and rates etc.
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    First of all... Being turned down. If youve never missed a payment ect then I'd be wondering why I was turned down. I'd be checking experian and the other one (sorry can't remember the name - Equifax I think???) as to why you've been turned down. There has to be a reason. Did you do it online or was it from a bank ect?

    Consolidating your loans means you may pay more overall. First check with your current finance company if you can actually pay your car finance off without incurring any costs. Sometimes if your lucky they charge you 2 months interest along with your final figure. However I think nowadays its more likely that they will just simply say that you'll have to pay all the interest + fees + final payment. So it may not be that simple.

    Talk through with your finance company and be honest with them that your really struggling at the moment and although your not in any real trouble currently you can see trouble on the horizon. They won't want the car back and they will want you to pay the loan. They maybe able to arrange a payment break or reschedule the loan over another year and drop the monthly payments ect. Make them work for their money. Your being honest with them they should help you.

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    Only thing I'd be wary of is putting any annual/regular stuff on a loan e.g. insurance - once the initial year is up you'll be paying the loan for it's lifespan (which has current insurance on) plus the next years insurance.

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    Quote Originally Posted by jam View Post

    Consolidating your loans means you may pay more overall. First check with your current finance company if you can actually pay your car finance off without incurring any costs. Sometimes if your lucky they charge you 2 months interest along with your final figure. However I think nowadays its more likely that they will just simply say that you'll have to pay all the interest + fees + final payment. So it may not be that simple.

    jam
    Noo thats the thing, the interest is high so by getting £800 more on a new loan than the current loans worth i still end up paying less back.

    and i have got the settlement figure and i only get charged a months interest so it not to bad a figure that i have to pay back.actually considerably less if i pay now get a new loan for £800 more and then pay that all back! i end up paying a grand less back!!

    and i will hopefully go into my bank and speak to them next week.


    If you dont mind Andy who do you work for? (PM Me if you dont want to publicly say if you dont mind lol)

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    Go onto www.moneysupermarket.com and go through their apply for a loan section. You can opt to add extra details where they do an Experian check. Complete that and go to the next stage, it will then list the companies in order of lowest monthly payment, as well as this it will also tell you where your credit score is i.e. good, not so good, shite. Its a free way to see where you stand.

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    yeah, i know my credit score though as i have a credit expert account and i paid to get it so i know thats good (999/1000) !! and the money supermarket thing is ok but i dnt want another search on my report and it basis it on ur info provided rather than actual info!!

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    Quote Originally Posted by astracolli View Post
    If you dont mind Andy who do you work for? (PM Me if you dont want to publicly say if you dont mind lol)
    Barclays
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    ah cool, well ill pop into nationwide soon then!!!!

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