been accepted but...?

wizardfire · 25 April 2006 at 2:18PM

i have been trying for a loan from any credit company and can't seem to get one accepted?
i have never had any credit /debit cards in my life and also have never had any debt and i only have a visa electron card to which my wages go into,i have tried with my existing bank to get them to transfer me over to a current account and they said no!! (i am with halifax) i work full time and all the companys i have asked for either a credit card or a loan have refused me on the basis of having a low credit rating?
however i have been provisionally accepted for a loan by tenent loans but they are asking me to pay an acceptence fee of £49.50?
am i right in thinking that their is something dodgy going on? i am asking for a loan so why am i having to pay any money upfront?
also am i right in thinking that even if i pay it doesnt garuntee me getting the loan anyway?

be grateful for any advice??

maforduk · 25 April 2006 at 2:31PM

An acceptance Fee is away of them getting money off you.
The provisional acceptance does NOT guarantee you the loan.
Basically, they ca take your money for the acceptance Fee and then decline you the loan. If they do accept you, it will likely be with high Interest Rates.

How old are you if you don't mind me asking. I think that the reason they won't accept you is because you have never had credit before and therefore do not know how good you are with your finance's.
Best thing you can do is:
-find out why your bank won't upgrade you
-apply for another bank account at a different bank
Also, another reason why they won't accept you is because you have applied for so many thing's called SEARCHES on your CREDIT FILE (https://www.experian.co.uk - 1 month FREE Trial) in such a short time. This significantly decreases your 'Credit Rating'.

Hope that this helps.

wizardfire · 25 April 2006 at 2:45PM

cheers,thought it was a bit suss!! a bit like the premimum rate number they want you to call? i have applied to loyds bank and am just waiting to hear back from them it sounds optimistic as they rang me to confirm how much money i will be putting into the account each month among other details, but then nothing is set in stone unless its on paper and in black and white as they say.so the more loans or credit you apply for decrease your credit rating as well? i am 29 this year

maforduk · 25 April 2006 at 3:01PM

29, and you've not had any credit as yet! Well Done.

With your age and 'wisdom' I don't see why they would not give one to you then!

grumbler · 25 April 2006 at 3:26PM

1. Read Martin's article: Your Credit Rating: How they decide and how you find out for free

2. Stop applying for credit now. On your credit files you don't have any credit history - only many recent searches. You cannot get anything decent in this situation.

3. Try applying for one of these credit cards: Capital One Classic, Vanquis, Aqua. If accepted use it wisely (or don't use at all) to build some credit history. It is better to wait 3-6 months with this application too.

4. When you have at least 6-months credit history apply for a loan if you still need it.

wizardfire · 25 April 2006 at 3:44PM

good advice cheers, the trouble with me is that i normally save for anything i want but this time i have little choice then to go down the credit route, i will try capital one and aqua see what happens but i think it stinks that a person with no debt can't get credit yet a person who is in debt can get as much as he/she wants!!
doesnt make sense.

maforduk · 25 April 2006 at 3:49PM

I know what you mean, Vicious Circle!

grumbler · 25 April 2006 at 4:14PM

wizardfire wrote:

...this time i have little choice then to go down the credit route, i will try capital one and aqua see what happens

These cards are not for borrowing money! You are likely to get very low credit limit; Capital One can even ask you to pay a deposit. My advice was to use these cards only to build some history. If you pay the balance in full every month or don't use the card, this does't cost you anything.

but i think it stinks that a person with no debt can't get credit yet a person who is in debt can get as much as he/she wants!!

I don't see anything wrong with this. Credit history is not about the amount of debt, but about the ability to manage the debt.

wizardfire · 25 April 2006 at 5:56PM

right!!!!!!
so i have to get myself into debt then arrange to pay it off in installments so as they can see that i can manage my money!!!!!
get real mate!!!
i can manage no problem which is why i don't owe anybody a penny!
can u say that?
and i have a daughter and all the rest of problems that come with life etc but i dont have any debts whatsoever!!
so it pays as such i guess to have debts afterall then????

Catch_A_Fire · 25 April 2006 at 6:54PM

Have you asked the Halifax (your bank) for a credit card? When I turned 18 I went into the branch to upgrade my Solo card to a Switch, they filled the application for that and pressured me into applying for a credit card. They gave me the CC but not the switch!

grumbler · 25 April 2006 at 8:59PM

wizardfire wrote:

right!!!!!!
so i have to get myself into debt then arrange to pay it off in installments so as they can see that i can manage my money!!!!!
get real mate!!!

Wrong!!!!! Using a credit card and paying the balance in full every month doesn't cost you anything and doesn't get you into debt. I never had loans and paid instolments. However, I had a loads of credit history even before I've got a mortgage. Besides mortgage my history consists of:

current accounts with overdrafts that I never used
credit card accounts that I always pay in full every month if balance is not at 0%.
contract mobile phone accounts.

If you just have a CC with some available credit and don't use it, the history is absolutely the same as if you used it and made minimum of full payments every month on time. So, just having some credit available helps to build a credit history even if you don't use it. All this is about your ability to manage (available) credit too.

been accepted but...?

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