Loan Trouble

[money]

recently I had a car on hire purchase with a balance of £16,000 remaining and wanted to sell it. Therefore, I took out a loan with Tesco for the balance of £16,000 and paid off the remaining finance. Following this I sold the vehicle for £16,000 and paid off the loan right away however now when applying for car finance or loan to purchase another vehicle I am finding it difficult to get accepted anywhere. Is this due to recently taken out alone and therefore the credit agencies are cautious? Is there anything else that I can do?

 

[Diddums]

Gotta be more to it than that, download the Experian, Credit Karma and Clearscore apps. Sign up to them and see what they say.

 

[Scort]

recently I had a car on hire purchase with a balance of £16,000 remaining and wanted to sell it. Therefore, I took out a loan with Tesco for the balance of £16,000 and paid off the remaining finance. Following this I sold the vehicle for £16,000 and paid off the loan right away however now when applying for car finance or loan to purchase another vehicle I am finding it difficult to get accepted anywhere. Is this due to recently taken out alone and therefore the credit agencies are cautious? Is there anything else that I can do?

It can take many weeks for your credit file to be updated - so if you've only just paid it all off, that will be the likely reason.

 

[Zefan]

As well as the above, stop applying to anywhere for any finance until you work out what's going on, it will only make your situation worse.

 

[OldKitMan]

It's also possible that it shows you paid off a loan straight away, the lender probably lost money on that so that will be part of the scoring criteria used by potential lenders when assessing the application. As others have mentioned as well it's quite possible that both loans or one of the loans still show as outstanding as well as the additional hard searches that have taken place.

 

[Gray2233]

As well as the above, stop applying to anywhere for any finance until you work out what's going on, it will only make your situation worse.

This.

If you get refused by somewhere it's good practice to stop applying, it's an automatic red flag to loan/finance companies as it indicates desperation.

 

[[FnG]magnolia]

Username + post content = HI SCORE

 

[Gray2233]

Username + post content = HI SCORE

You're not wrong, but there's a grand old problem of people searching the interwebs for the sort of problems described in the OP with zero resolution or good advice. I legitimately feel it's better to simply give positive input to those who might find this sort of thing via a search engine rather than turning the internet into a bunch of dead ends.

Old sod mode engaged I know, but there's so much positive data going the way of the dodo due to the transition to poor information retention/searchable related social media (Discord, Twitter, etc) over forums. OCUK is part of a dying breed in that regard imo, there's a few other specialist forums out there but they're slowly dying out in favour of worse long term experiences.

 

[[FnG]magnolia]

You're not wrong, but there's a grand old problem of people searching the interwebs for the sort of problems described in the OP with zero resolution or good advice. I legitimately feel it's better to simply give positive input to those who might find this sort of thing via a search engine rather than turning the internet into a bunch of dead ends.

Old sod mode engaged I know, but there's so much positive data going the way of the dodo due to the transition to poor information retention/searchable related social media (Discord, Twitter, etc) over forums. OCUK is part of a dying breed in that regard imo, there's a few other specialist forums out there but they're slowly dying out in favour of worse long term experiences.

I agree