Loan application rejected by bank

mvitti185

Hi - this is my situation.

I'm 23 years old and I bank with Halifax. I have no credit cards and live at home with my parents. I have just started a new permanent job (in my first month at the moment). I've checked my score on Experian and it's 865 which puts me in the Fair/Average category. Now, I approached Halifax for a loan of £2,000 to go towards a deposit for a place of my own, but I was rejected and wasn't given a reason why. Due to my circumstances I presumed borrowing from my bank would be the best option as they can predict my spending habits etc... so who can I turn to now?

~Beanie~

You have probably been turned down because you have no credit history. You have no credit cards, live at home with parents, have only been in your job for a month etc etc

If you only need £2K then can't you save this amount instead of borrowing it? I assume you don't have many outgoings due to living with parents so it really shouldn't take you very long.

Also, a score of 865 with Experian doesn't really mean much as lenders don't use it!

Rafter

As Beanie says, the credit score is no guarantee.

Each lender will have its own scorecard which will define a) Whether they will lend b) How much and c) at what rate of interest.

You have a number of things counting against you as Beanie has listed.

Best think is probably to wait 3 months and try again and maybe apply for a credit card or mobile phone contract to start building up some repayment history.

Other idea is to ask the bank of mum and dad for a loan if they are that keen for you to move out!

R.

jonesMUFCforever

If you have been living at home have you not managed to save anything at all?
I can see where your bank is coming from - first pay packet and you want to borrow £2k with no track record for paying anything back.

The only way round this as I see it is for you to try and get a 0% credit card on purchases and put most of the things you need to buy on this but pay back as much as possible as soon as possible.