Loans & car finance: questions and answers

United Kingdom 6

1. Why can't I get a loan, even with a good credit score?

   Lenders check both your credit history and whether you can afford the repayments from your income, so you can be refused with a good score because of affordability, too…

2. Can car repossession be stopped on hire purchase?

   Often yes: paying the arrears within the 14-plus days a default notice gives you wipes out the breach, a lender needs a court order once you've paid a third of the…

3. Can a lower PCP APR be used after you have signed?

   Usually not automatically. Once a regulated PCP credit agreement is made, the agreed interest rate and payments are normally governed by the signed contract. A lower…

4. What happens at the end of a Motability lease?

   At the end of a Motability lease, the normal process is to return the vehicle and choose the next eligible lease if you remain entitled.

5. How does PCP early settlement work?

   You can normally ask the finance company for an early-settlement figure on a PCP. Paying it ends the finance agreement, but the figure can be different from simply…

6. How should I handle a Direct Debit I want to stop?

   You can normally cancel a Direct Debit through your bank, but cancelling the instruction does not cancel the underlying bill or contract. Deal with the money you still…

United States 5

1. Was I sold an unregulated loan without being told?

   There is no single US rule that defines every “unregulated loan.” A product can fall outside one federal disclosure rule yet still be subject to state licensing…

2. Is it ever worth taking a US loan if you could use your savings instead?

   Borrowing can be sensible when keeping cash protects an important emergency reserve, but using debt to leave uncertain investments untouched adds risk. Compare the loan…

3. How can you get your name off a co-signed loan?

   Usually, you cannot remove yourself from a co-signed loan just by asking. The lender must agree to a release, or the borrower may need to refinance or repay the debt…

4. What is a fair interest rate for lending money to a friend?

   There is no single “fair” rate for a personal loan to a friend. The sensible rate reflects the borrower’s ability to repay, the risk you are taking and what both of you…

5. Should I use a co-signer finder or hire a co-signer?

   Be very cautious about websites that promise to “hire” a co-signer for a fee. A real co-signer takes legal responsibility for repayment. You should never pay an unknown…

Worldwide 1

1. Should I pay cash or take a loan?

   Pay cash when the loan cost is higher than the after-tax return you can realistically earn and paying cash still leaves an emergency reserve. Borrowing can make sense…