Help with Personal Loan
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Im 22 years old and have a relatively good credit history, not had a late payment in around a year our two. I am getting my first car and need a loan of around 6-7 thousand pounds.
I applied to sainsburys and got a shock when I was declined.
I have looked at my credit file and I'm down 165 points, due to too many applications and checks from comparison websites, there is so many checks on my file
I recently got a few items on finance, which I can comfortably pay back.
I now am facing a dilemma, as I want to apply to Tesco as they have a higher acceptance rate but I'm just a bit worried, my history is pretty clean but just unsure of where to go from here, any help is appreciated!!
I applied to sainsburys and got a shock when I was declined.
I have looked at my credit file and I'm down 165 points, due to too many applications and checks from comparison websites, there is so many checks on my file
I recently got a few items on finance, which I can comfortably pay back.
I now am facing a dilemma, as I want to apply to Tesco as they have a higher acceptance rate but I'm just a bit worried, my history is pretty clean but just unsure of where to go from here, any help is appreciated!!
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Comments
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I am also in full time employment at a Finance Company.0
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Quotation (eligibility) searches are soft searches and aren't seen when applying for credit. Without kmowimg your personal circumstances and knowing the lenders criteria (credit / affordability scoring) and business model it is difficultt to say why you have been rejected. The CRA score is a generic credit score that factors in the things that are considered within a lenders own credit score, it can't predict how a lenders score will asses you. As many on this forum will tell you a lender looks at your credit file data and not the CRA score.
Because you've been rejected by one lender doesn't mean you will be rejected by another. If you have opened (or applied and been unsuccessful) for many new accounts in a short period of time this will impact any credit score negatively. Opening new accounts means that there is no associated history on how you are managing them. The more history you have the better you can be assesed to determine the risk of doing business with you, so this May well be the reason you've been rejected. If this is the case then time will come to your aid as your file gains more history showing good account management, though you may still fall foul of affordability scoring.
Whilst this link is from the US - http://www.myfico.com/credit-education/whats-in-your-credit-score/ , it will give you a good view of how a credit score is generated. The UK and US operate CRA's and credit checking in very similar ways.0 -
Im 22 years old and have a relatively good credit history, not had a late payment in around a year our two. I am getting my first car and need a loan of around 6-7 thousand pounds.
You have at max 4 yrs of history.
You have had no late payment for a year or two? Does that mean you did have late payments before that? If so only 50% of your history is good.I applied to sainsburys and got a shock when I was declined.
Don't be shocked - their criteria is never revealed so you don't know if you meet it.I have looked at my credit file and I'm down 165 points, due to too many applications and checks from comparison websites, there is so many checks on my file
As said, comparison websites leave soft searches on your file, lenders don't see soft searches though.
Take no notice of your points.I recently got a few items on finance, which I can comfortably pay back.
If you've recently taken items out on finance then there will be limited history. Depending on how recently will depends whether you are being perceived as 'desperate for credit'.I now am facing a dilemma, as I want to apply to Tesco as they have a higher acceptance rate but I'm just a bit worried, my history is pretty clean but just unsure of where to go from here, any help is appreciated!!
Set your sights on a cheaper car, save for it - maybe using the money you were going to use for the loan, especially if it's your first car. You will have knocks and prangs - it will hurt less if it's a car that cost you £2k as if it cost you over £5k.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0 -
Just a thought OP, if you have had to take out finance recently for "a few items", then you are already living beyond your means and need to cut back your spending. Getting a car loan would be madness until you spend less than you earn and start saving up for your car.The instructions on the box said 'Requires Windows 7 or better'. So I installed LINUX
:D0 -
OP, how much do you earn?0
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I earn 18k I have a MacBook on finance for £130 a month and a few small items like phone and etc, 8 have a around 900 disposable each month give or take, I have already had another few items on finance a few years back all paid with no issues, I messed up on my credit card when I was 19 I was late around 2 times and went overlimit a fair amount of times as I wasn't aware of interest applying each month, I now have had this under control since.0
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I wouldn't say I'm living beyond my means, I just am not a good saver, if I was I could save 7-800 a month but I can not do it aha, hence why I pay monthly for things and I also want to build my credit, although this seems to be going adversely at present
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Learn to save.
Really, you'll thank yourself for it in a few years.0 -
I earn 18k I have a MacBook on finance for £130 a month and a few small items like phone and etc, 8 have a around 900 disposable each month give or take, I have already had another few items on finance a few years back all paid with no issues, I messed up on my credit card when I was 19 I was late around 2 times and went overlimit a fair amount of times as I wasn't aware of interest applying each month, I now have had this under control since.
How much are you paying for these items on finance ?
If you had a direct debit set up you woild have been ok, keep a regulsr check on how close to your balance.0 -
I earn 18k I have a MacBook on finance for £130 a month and a few small items like phone and etc, 8 have a around 900 disposable each month give or take, I have already had another few items on finance a few years back all paid with no issues, I messed up on my credit card when I was 19 I was late around 2 times and went overlimit a fair amount of times as I wasn't aware of interest applying each month, I now have had this under control since.
You earn 18K, so roughly £1200 take home per month and you have £900 disposable income? Your outgoings are incredibly low but you are using finance to purchase items. Where is the rest of this money going? You should be buying phones, laptops outright and saving for higher price items such as a car.
Your low outgoings suggest you are still living with parents, assuming you want to move out one day, start saving now for a deposit for your own place. Once you live in the real world £900 spare income a month will be some thing you can only dream about.
Sorry if this seems harsh but most people in their 30s or 40s struggling to survive financially will look back with regret at poor financial decisions they made when they were younger.0
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