Car Loan?

[The Guv.]

Been considering getting a car loan rather than splashing out all of my cash in one go, however...

I've been told most lenders have refused me and only 2 have accepted me at an apr of 25.5%!!

This is apparently because I have NO credit history at all! Not because I have bad credit :S

In the 14 years of living at my address I've never had credit of any description, so apparently that makes me in to a bad credit risk?

Also I don't have a UK current account with lending agreements etc so that probs doesn't help either?

What sort of messed up game is this? lol surely I should be a very good credit risk having no credit outstanding/existing?

[Duncan]

I can see your frustration, but the lenders want to see a history of good credit before they'll give you credit. The fact that you've had no credit simply means that they have no past history or proof that you've taken on credit and paid it off with no issues. Not having a UK bank account definitely won't be helping the matter.

Can't think what to suggest really.

[Rebellion]

Your choices are limited at the moment (and made worse by the credit crunch) - take the only offer(s) you're getting [although personally I'd baulk at paying 25% interest]) but make the repayment period as short as you can afford, e.g. 2 years not 5, as you pay more interest overall the longer you take to repay the loan; OR don't take the loan (i.e. either don't make the purchase, or borrow from friends/family) and at the same time start to build up your credit history - get a proper bank account, a credit card with a low credit limit (Capital One specialise in this), or maybe open an account with a catalogue company (Grattan etc) as that also constitutes a credit agreement. That way, in a year or two's time, you'll have a credit history.

The Golden Rule though, is to NEVER miss any payments on ANY sort of borrowing - or you'll end up with a bad credit history, which is worse than no credit history at all.

[Big Sig]

What you need it a credit card, any apr and just use it for small amounts and pay them off every month. This will help create you a credit file. Its not fair, but if they have ne record of you paying things off then they do not know if you will/can

[VauxVeteran]

Get a bank loan mate, finance is the expensive route anyway.

[parapaul]

Your bank should be able to see exactly how you manage your money, and will be more in inclined to lend you money. Car finance is a mug's game - you don't own the car until it's paid off.

[rob 2.2dti]

banks may not loan him with no history at all inc no current account !!

[parapaul]

My bad - didn't read that in the OP.