Car loan and Experian score of 790?
I’m new to the UK and should be starting work next month and my wife is working now. I need a car and have enough to purchase it outright but want to finance half in order to build credit. I have no pre-approvals from my bank and they told me that I could only get a loan from them if I owned a home but I don’t. From what I am finding out is that there is no financial institution in the UK that will give secured loans using a fixed deposit as collateral. Is this true? Also my Experian score is 790 is this good, bad, or indifferent? On their site it says the score is "fair". Does anyone have any advice on how I can get some financing to purchase a used car if I am paying for half of it and willing to secure the other half with a fixed deposit? Thanks in advance.
I haven’t checked with car dealers because I’m new to the UK system and have had no previous credit here and not employed until next month. I just found out my credit scoring and wanted to get some feed back. The better deals on used cars are through private sales and I would have to secure financing on my own for that. I used to live in the USA as well and their system is a lot easier than the UK’s trust me. Here they are very systematic. I find it ten times easier to build credit in the States. Will the 790 Experian score help me to secure dealer financing even though I’m not exactly "hired" at this particular moment?
Financed cars is more expensive to insurance cause it requires full coverage. You can compare how much you would pay for full coverage of this car using this tool – carinsurance.deep-ice.com
I don’t know how it works in the UK but in the US, every car maker owns their own finance company for the sole purpose of making secured auto loans. This applies if you are buying a new car but even used car dealers usually have sources of lending. Have you check with a car dealer about this?
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If your getting the car from a Dealership, like Audi, VW, BMW for example, they will be able to do finance for you.
At the moment, with the way interest rates are, they seem to be doing cheaper % deals too.
If you really can’t get finance, it may be worth getting a credit card and using it for normal everyday things, making sure you pay it off each month. This way your credit scoring will get built up.
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I can’t answer all of your questions, but I can tell you that an Experian FAKO (any credit score that was not produced by FICO) score of 790 is outstanding, not "fair." This would put you in the lowest possible risk category. In my experience, you deduct 45-50 points from an Experian FAKO to get an approximate FICO score. Thus, your FICO would be about 740-745 — one step below the lowest possible risk category. (As an aside, deduct 30-35 points from a TransUnion FAKO score to get an approximate FICO score.)
Here in the states, we have nonprofit "banks" called credit unions. If you have such a thing in the UK, I would suggest you take your proposal to them. If banks are your only option, however, ask them directly what they WOULD accept to secure the loan. A blue-chip stock to hold while you pay down the loan? A municipal bond from your local taxing authority? Krugerrands? Stock in the bank you’re borrowing from (you’d really have to worry about a bank that wouldn’t accept its own stock as collateral).
Finally, if you have a creditworthy relative whom you trust as much as you trust yourself, let them hold your money in exchange for cosigning your loan. Other than that, I’m out of ideas. I wish you the best of luck.
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Financed cars is more expensive to insurance cause it requires full coverage. You can compare how much you would pay for full coverage of this car using this tool – carinsurance.deep-ice.com
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For a car loan, your best bet would be the car dealer .. such a loan (often called HP = ‘Hire Purchase’) will be secured against the car … and with dealers desperate to shift stock, you have a very good chance …
It’s very difficult to get HP on a ‘second hand’ car – it MIGHT be possible if sold by a dealer, however if it’s a private buy you will have to arrange you own finance and that means an ‘unsecured personal loan’ (whihc you won’t get until you have some record of continuous income eg wages from employment)
PS Credit (was) indeed easier to get in USA, however now that this has caused a number of major US banks to go bust (or end up being rescued by the State) and resulted in a world recession, perhaps lending policies in USA should be reviewed …
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