Loans on circumstances

ZachAsaD · 25 May 2017 at 2:28PM

Hi Guys,

I'm new here. Just wanted to ask a question on behalf of my brother. Basically, he is self employed, earns about 600-700 a week. But his credit score is "very poor" about 511 I think.
He's wanting to get a £5k personal unsecured loan to purchase a new car that will help with his job. The only thing is, his banks wouldn't even bother speaking to him about his income, just said he wasn't eligible and he was also refused a loan from Tesco. Is there any financial products (loans) that don't just look at the credit history? Is there any lenders that will actually sit down with him and work it out? Or is there another way I don't know about? Guarantor loans are out of the question too.

Any help or advice regarding getting a loan in his circumstances are very welcome!

Thanks!

Candyapple · 25 May 2017 at 3:19PM

Firstly ignore any credit scores as they are meaningless.

From what you have written, your brother has a poor credit history (for whatever reasons) which in turn means he now has to do things the old fashioned way of save up for them if he can't get any credit.

Can he not buy a cheaper car?

If he's on £6-700 per week, why hasn't he got any savings?

There are no lenders that will lend without a credit check/looking at credit history.

He can always try his luck and enter his details here:
https://www.moneysavingexpert.com/eligibility/loans-calculator/

bengalknights · 25 May 2017 at 3:44PM

Has your brother checked there record to ensure its correct as with a income like that there own bank should be more than happy to facilitate

Mobeer · 25 May 2017 at 11:28PM

ZachAsaD wrote: »

...my brother. Basically, he is self employed...The only thing is, his banks wouldn't even bother speaking to him about his income, just said he wasn't eligible and he was also refused a loan from Tesco.

If they heard he is self employed and didn't discuss income then maybe he failed this rule on being self employed for 2+ years:
"You're in full time employment with no probationary period or you've been self employed for over two years or have a regular income e.g. pension"

If true, that doesn't mean he can't get a loan elsewhere, just he needs to read the terms carefully before applying.

Ben8282 · 26 May 2017 at 4:27AM

Why is your brother's credit score 'VERY POOR?'. This has nothing whatsoever to do with either employment status or income as the CRA's don't hold this information/
The cause of the refusal of the loan was whatever is causing the very low credit score. I know credit scores are worthless as such but are nevertheless indicative and 'very low' strongly implies something not very good there.

redpete · 26 May 2017 at 6:39AM

Candyapple wrote: »

Firstly ignore any credit scores as they are meaningless.[/url]

Again this misleading MSE mantra.

A poor credit score indicates that there are things in your credit history or circumstances that might give a lender cause for concern. It therefor suggests there might be things that the borrower should look at to improve their chances of getting a loan.

PeacefulWaters · 26 May 2017 at 8:33AM

Good income. £5,000 every two months coming in ...

jonesMUFCforever · 27 May 2017 at 8:00PM

1 If self employed has OP got a business account?
2 Has he registered himself with HMRC as self employed?
3 Has he got any late payment markers, CCJ's ?
4 Is he up to date with all outstanding liabilities such as rent/mortgage/utility bills?

Earning £600 per week is of no use to OP if he already spends £601 (what about tax bills?) he simply cannot afford it.

Now if he had a business account with a business plan showing how the vehicle would generate bigger revenues then he may have a chance.

phillw · 27 May 2017 at 10:10PM

redpete wrote: »

Again this misleading MSE mantra.

A poor credit score indicates that there are things in your credit history or circumstances that might give a lender cause for concern. It therefor suggests there might be things that the borrower should look at to improve their chances of getting a loan.

The most stringent lenders are also not always the best deals, so you can have bad things on your credit history and still get the best deals. However if your credit history is really bad (which will give you a low credit score) then you won't get the best deals.

Your bank may look more favourably on your predicament.

ZachAsaD wrote: »

Is there any lenders that will actually sit down with him and work it out?

If he's defaulted on a load of loans then I'm not sure that sitting down and promising that he's not going to default on this loan will get him anywhere. They don't accept pinky promises.

What exactly is on his credit file?

enthusiasticsaver · 28 May 2017 at 9:40AM

If he has a good income can he not save up for a car? £2400-£2800+ per month is reasonable although presumably he has to pay tax on this?

If he has a very poor credit record that is usually due to defaults in the past. If he has a history of not paying his debts he is unlikely to be offered a loan at even a reasonable rate let alone a good one. Can he save and buy a cheaper one to start with?

Loans on circumstances

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