Age And Finance: How It Affects Applications

18 to 80. How Does Age Affect Finance?

Did you know that you can apply for loans under the age of 18? You can also apply for loans when you are over 80. Applying for loans is never age restricted. Being approved for loans is a different matter. Let’s take a look at how age affects applications, and why companies like Match Me, ask for your date of birth.

Who is too young to apply for finance?

Whilst it is legal to drive in the UK when you are 17, you can not be approved for finance. There are guarantor loans available. This means that an adult must approve your application, and have the application in their name. This means that although the loan is for you, it is still in their name.

Loan approvals are partly based on credit scores. As a young person you may not have a credit score at all. You may have a very bad one, since credit scores can only be improved when you are old enough to have credit. The sooner that you can build up your credit score, adding credit files to your name, the better your score will be when you need it.

When you turn 18, move direct debits into your name and make sure that you have your own bank account. Put mobile phone contracts in your name and begin to build up your credit file. The lower your credit score, the higher the APR on loans. You are considered a risk. Having credit history and a guarantor can mean that you get better deals, so it is worth building up credit accounts from a young age. Unless of course you have thousands of pounds in the bank and you don’t need a loan.

What is the right age to get a loan?

The average age of people applying for finance is around 25 years old. By that time people are looking to move into their own home. They are settled in a job, and they have a real need for finance and for a car.

They could be considering starting a family, or pushing for promotion at work. Their employer might need them to drive to meetings or their family might need driving to the shops or to school.

Lenders take into account personal circumstances and age when approving loans. The reason for needing a loan is often linked to your age and your lifestyle at the time.

Who is too old for a loan?

Lenders often consider the retirement age as the age limit to lend to. Retired people often have pensions, a steady income, more assets to use as collateral and are more responsible with their money. They are better at living on a budget and living within their means.

Loan terms like length of loan, APR rates and the amount of the loan are all taken into account when considering loans to retired people.

Is Age important to us?

Here at Match Me we want you to be happy. We want you to get the loan you are looking for, so you can drive the car that you want. We set age restrictions on our application form because we know the lenders that we have on our panel of trusted partners. We do not offer loan applications to people under 18.

If you are under 18, and still want to be Matched to the car of your dreams, we can offer advice to build up your credit score, so that when the time comes, you drive away happy.