Car Financing

Tom L · 7 Mar 2008 at 14:37

Does applying for car finance work like a personal loan? i.e. the same procedures and rules apply when submitting an application and searching credit history?

I got turned down for two personal loans (even though I got accepted for a credit card a month ago) and was wondering if I'll get rejected for car finance as well?

atpbx · 7 Mar 2008 at 14:40

The car is a reclaimable asset, its slightly different to personal finance.
You also have the option to give the car back after you have made 50% of the payments and get rid of the debt (and car if its a pony) with finance.

[TW]Fox · 7 Mar 2008 at 14:45

If your financial situation is perilous to the extent that you cannot get a personal loan you must ask yourself if taking out car finance is really that prudent.

LiE · 7 Mar 2008 at 14:52

Some people have poor credit through no fault of their own. I earn a decent wage but can't get a loan or credit card. Where as my girlfriend who earns a lot less than me gets accepted for almost anything.

Muffin` · 7 Mar 2008 at 14:55

msm722 said:
Some people have poor credit through no fault of their own. I earn a decent wage but can't get a loan or credit card. Where as my girlfriend who earns a lot less than me gets accepted for almost anything.

Thats probably because they know they won't make any money off you because you pay everything off on time.

OllyM · 7 Mar 2008 at 14:56

How is it not your own fault for having a bad credit rating?

Unless you miss payments and are not on the electoral roll there's no way you should have a poor credit rating.

LiE · 7 Mar 2008 at 14:57

I don't believe that's a factor when deciding to give credit.

[TW]Fox · 7 Mar 2008 at 14:58

Muffin` said:
Thats probably because they know they won't make any money off you because you pay everything off on time.

It's not - personal loans dont work like that. People who pay it off on time are bad customers for credit card companies but good customers for personal loan companies.

LiE · 7 Mar 2008 at 14:59

OllyM said:
How is it not your own fault for having a bad credit rating?

Unless you miss payments and are not on the electoral roll there's no way you should have a poor credit rating.

My parents are bankrupt. Which reflects on my credit. I also share the same name as my dad which means sometimes credit agencies search incorrectly. I don't miss payments.

OllyM · 7 Mar 2008 at 15:00

Well, it shouldn't - you should file a notice of disassociation with the relevant CRA's.

Scottland · 7 Mar 2008 at 15:02

OllyM said:
Well, it shouldn't - you should file a notice of disassociation with the relevant CRA's.

I thought you didn't need to do this anymore, as of a few years back? I seem to remember it coming into force about 2 months after I had my sister sign the disassociation paperwork.

LiE · 7 Mar 2008 at 15:04

I wasn't aware of anything that I could do.

Muffin` · 7 Mar 2008 at 16:11

[TW]Fox;11249129 said:
It's not - personal loans dont work like that. People who pay it off on time are bad customers for credit card companies but good customers for personal loan companies.

I just read credit cards, you should know, that I know