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?

 

[money]

Thanks for your help all, I did check credit reports, it says I’m using 40% of my limits which I don’t think is that bad tbh, it drops each month obviously with my payments for other items. I guess it’s a waiting game! Annoyed that I’m no without a car for a month or so until it all updates

 

[money]

They generally advise not to go over 25% IIRC and I wouldn't bank on it magically being fine in a month due to lag in updating and the fact companies use their own criteria not just what we can see on the credit report sites.

It’s a strange one, I have 100% acceptance on credit cards over £20k yet a loan is showing 0% whole thing is very confusing

 

[money]

If your desperate for a car, then just get a 2k car for now, use it for a year or 2, sort your finances out then you'll be in a stronger position to get a more expensive car

Going from a 2022 BMW 530e to a 2k car is not an option for me I’ll walk before I buy a 2k car , however, I’m more looking for an alternative solution or understand as to why it’s now a blocker when it never has been in the past. Is it due to having a loan for the £16k and finance showing for £16k at the same time? Will it update its self to zero within a month or so? Or can this process take a year?

 

[money]

car had £16k remaining in finance.
Personal Loan taken £16k
Paid remaining finance £16k
Sold car
Paid loan £16k with money from sales of the car.

So nothing owing anywhere, if I knew this was going to happen I would have kept the £16k in my pocket and paid the loan monthly and just added funds to buy another car.