Direct Line Car Loan Explained

Established in 1985, Direct Line began selling auto insurance via one method and one method only, the telephone. Customers flocked to their telephones to purchase auto insurance policies without having to arrange appointments during work hours. Positive feedback multiplied, and Direct Line grew enormously. Eventually, Direct Line merged with the Bank of Scotland. The newly formed company focused on providing inexpensive loans and insurance to anyone aged 22 or older who resided in Wales, Scotland, or England.

What Are the Requirements

Interested applicants can telephone or go online to answer a few questions. Before filling out an application, it is important to make sure you meet their qualifications. You must be at least 22 years of age and reside in England, Scotland, or Wales. You must have proof of employment, retirement, or that you are collecting disability. Also, you should belong to a bank that offers direct debits. When you fill out the application for a Direct Line Car Loan, you need to provide a few important pieces of information. The necessary list is: income information, monthly expenses, residential address, place of employment, banking accounts and addresses, and any outstanding loans.

What Happens Next

From the time you submit your application, Direct Line guarantees the car loan will be approved within ten working hours. If the car loan is denied, an email followed by a postal letter stating the reason for denial will be sent. You can call for a verbal decision of acceptance or refusal after the ten-hour mark has passed. If you do not hear from them, chances are they have been unable to reach you. Call for an answer.

Payment Schedules

Terms on a Direct Line car loan range from two to seven years. Longer terms are available only for amounts exceeding £10,000. At the time the money is disbursed to you, the interest is calculated and added to the loan amount. This new figure is divided by the number of payments selected, and the payment amount is recorded. Since the interest is already added into the amount, you cannot send extra money during the term of your loan. You can pay your loan off early, however. Direct Line car loan representatives will calculate the amount still owed minus any rebate of interest for the early pay-off. An early settlement fee equal to thirty days of interest is added to that balance if your loan began after May 2005.