How long before I should re-apply for a personal ...

[purplepolarbear]

Hi. My application for a £10k loan has just been rejected because my fiance has only been in his new job for 1 month, and he is still in a 3 month probation period. We have both never had a break in employment, and can comfortably afford the repayments. We have been saving £700 a month for our wedding, and will no longer need to do this. The repayments are under £200 a month. If we re-apply in 2 months time when he has passed his probation, will the rejection affect our second application for the loan? Any advice is much appreciated. We need a loan because our car will be written off when it goes for it's next mot so we need to replace it, and were hoping to upgrade, given that we can afford the payments. Thanks

[BugsyBrowne]

Why do you think you've been declined a loan because of short time in work, this can be a factor but many more factors to consider as well like past credit history missed/late payments total debt to salary credit utilisation.

Have you checked your credit report recently?

[rdwarr]

Here's an example of a really nice car which you can probably already afford:
http://www.ebay.co.uk/itm/1994-NISSA...item3a7a90c4ab
It is unlikely to drop much in value and is pretty much "as new". Hundreds of others like this are out there.

Don't get into debt when you don't have to. You're just starting out together so best wishes for a happy future.

[BugsyBrowne]

Originally Posted by rdwarr

Here's an example of a really nice car which you can probably already afford:
http://www.ebay.co.uk/itm/1994-NISSA...item3a7a90c4ab
It is unlikely to drop much in value and is pretty much "as new". Hundreds of others like this are out there.

Don't get into debt when you don't have to. You're just starting out together so best wishes for a happy future.

Are you on a wind up a 1994 Nissan primera at £995 I wouldn't put that heap of sh*t on my drive for £995 let alone pay for it.

[purplepolarbear]

Ummm... That is older than my current car. I don't think there is anything wrong in treating ourselves. Every other person in the world lives on credit. We work hard and have saved every penny until now for a deposit on our own place and now a wedding. We can afford the repayments so that is our decision to make.

[purplepolarbear]

We have a very good credit history. We have never missed our mortgage payments or any other payments. We were told the decision to reject our application was based purely on the fact he is on probation period, which is understandable. I just wondered if this application rejection will now affect our next credit check, or if we will have to wait.

[jonesMUFCforever]

Originally Posted by purplepolarbear

We have a very good credit history. We have never missed our mortgage payments or any other payments. We were told the decision to reject our application was based purely on the fact he is on probation period, which is understandable. I just wondered if this application rejection will now affect our next credit check, or if we will have to wait.

If you continually apply for credit it will make you look desperate - and the chances of you being accepted diminish.

[purplepolarbear]

Originally Posted by jonesMUFCforever

If you continually apply for credit it will make you look desperate - and the chances of you being accepted diminish.

Oh right okay - thanks that's useful. That's what I was worried about. Perhaps the best thing for me to do is get a credit report in a few months when he has passed probation, before I make another application.

[chanz4]

why not take hp out?

[SeanG79]

If you have only made 1 application now and the sole reason for the decline is that your fiance is on probation at his new employment then an application once he has passed the probation period will not destroy your credit profile, nor will it make you look desperate...

If you wanted the finance sooner, you could apply for vehicle finance, which is easier to obtain than a personal loan as the bank will have the added security of the vehicle.

[bargainbetty]

Originally Posted by purplepolarbear

Ummm... That is older than my current car. I don't think there is anything wrong in treating ourselves. Every other person in the world lives on credit. We work hard and have saved every penny until now for a deposit on our own place and now a wedding. We can afford the repayments so that is our decision to make.

If you've saved everything for your wedding and deposit, the likelihood is that you are actually pretty smart/careful and won't have a problem, but the basic principle on here is to help people out of debt, not into it, which is why some of the responses you've got might seem a bit harsh.

I appreciate your sentiments about affordability, but do consider a couple of things. Not everyone lives on credit. I have a mortgage, but no other credit/debt.

Lots of people have taken out credit, and it's gone badly for them. The attitude of 'we can afford the repayments now, so let's have it' can turn bad. That is all that people are saying here, and the depreciation rates on a car don't help!

Personally, I've just bought an old car, because you can get some really lovely older cars, so I'm biased on that one too.

I wish you luck, whatever you decide.

[Catherine_Johnson]

Originally Posted by purplepolarbear

Ummm... That is older than my current car. I don't think there is anything wrong in treating ourselves. Every other person in the world lives on credit. We work hard and have saved every penny until now for a deposit on our own place and now a wedding. We can afford the repayments so that is our decision to make.

A couple of points....

You're wrong, not everyone lives on credit. Many of us don't.

Why not save up for the new car? Do you have to have it right now?

[YorkshireBoy]

Originally Posted by Catherine_Johnson

You're wrong, not everyone lives on credit.

I read the statement differently...thought they were saying 50% do - "every other person".

Still not sure it's correct though.

[fozmcfc]

Put the £700 you're no longer putting towards a wedding away and surely within the year you can get a nice car, without credit.

£10k loan at under £200 a month, sounds like it will be at least for 7 years and mean paying back £3 - £5k in interest. In 7 years the car will be worth half or less of what you've paid for it.

Car credit is madness, unless it involves a reasonable down deposit and 0% finance over the rest of the period. Or is paid for by a 0% purchase credit card and the purchase price is paid off before the 0% runs out.

[DCFC79]

Originally Posted by purplepolarbear

Ummm... That is older than my current car. I don't think there is anything wrong in treating ourselves. Every other person in the world lives on credit.

Just because other people lives on credit it doesn't mean you have to do the same, why not live within your means.

[eschaton]

Originally Posted by purplepolarbear

Every other person in the world lives on credit.

If that happens to be true, no wonder the country is in the state that it is in.

Originally Posted by purplepolarbear

We can afford the repayments so that is our decision to make.

The proposed lender does not appear to agree with you.

There is nothing better than owning your car yourself and not a lender.

[droiderm]

What if everyone else was smoking crack ?

[eschaton]

Originally Posted by droiderm

What if everyone else was smoking crack ?

Then I guess it must be ok then

[bouncydog1]

Take the car for the MOT and wait and see what they say. If it is written off, hire a car for a couple of months whilst you consider options. The thrill of a new car is great - but it's even better if its yours without any borrowing!