Age 20, Perfect credit rating, Refused Loan? Any help

mikeluke80

Hi,

I am 20 years old with a good job and salary, i have a great credit history and no other problems, i apply for a £12000 loan with sainsburys as they had a good apr. I pass the credit check and get a decision in principle and it goes all the way to there `final check` and they decline it? I then get the same problem with HSBC? Does anyone have an idea why, is it because i am young and are there any recommendations of decent companies with fast turn around.

Many thanks

mrcow

£12k is a lot of money. You may not have as good a credit rating as you think for such a large sum.

Are you a homeowner?

As for the quick turnaround, it depends on what the money is for and how you want to finance it / over what period you want to pay it back / how flexible you want it to be?

mikeluke80

Yes i understand its a lot and i think this is the problem, i have worked out the money i need and can drop to 10k, the money is for a few different things and a loan is the best option for me i think, i am not a home owner and i was looking at a period of 5 years.

CLAPTON

unless you are investing in a business, there really are very few reasons why someone aged 20, on a good salary and living at home needs a 12k loan.
Consider saving for the things you want... you won't regret it.

mrcow

The trouble is that if you have already been turned down by Sainsburys and HSBC who are two large mainstream lenders, then getting a loan on a good deal from another lender right now is not looking likely. The failed loan attempts will be showing on your credit record.

If you are looking for some of the money for debt consolidation, then it may be better to list out each of the debts and look at alternative ways of getting rid of them individually rather than one large consolidated loan.

If the loan is for some large purchases, then again, perhaps listing out what you're planning and perhaps coming up with an alternative would be a better option. You've been turned down for large loans but something smaller may be an option and you can always look at 0% credit card deals.

Also, and I'm not trying to be a nagging mum here, but if you can get the loan needed down to £10k, then the question has to be asked.....how further can you reduce it? You only have to open a newspaper to understand how sticky the current climate is. The reasons for this is because so many people have overstretched themselves on finance. It's not a good place to be. Lenders are becomming more reluctant to lend and the cheap deals are not as rife as they were a couple of years back.

If you're having problems getting something authorised from a lender, a good place to start is usually your main bank as you have history with them. Who do you have your current a/c with at present?

mikeluke80

Thanks for the great advice, i did worry about the failed loan attempts on my credit file but with me passing the credit check with the companies and them just failing at the final stage will this still show as a bad mark? I have always banked with the coop and there minimum lending age is 23 according to there web site. I really need this loan and i don't want to get ripped off by these bad credit loan companies etc. as i don't believe i fall into that criteria?

Zapp_from_Planet_Zogg

The failed applications won't show as a good mark or a bad mark (there is no distinction on the credit files).

They will simply show as applications for credit.

The more applications you have, in theory, the more available credit you have - and the less attractive you are to lenders as a result. (Many applications over a short time can also suggest desperation).

BargainMad_3

To be honest you have zero chance of getting an unsecured loan of £12,000 or even £10,000 at the moment with your criteria. If it had been BEFORE the current banking turmoil, then maybe - depending on the lender - yes. However now, I would say no chance from any high street lender.

I really would reconcile yourself to not getting a loan. Even secured loans are getting more difficult to obtain. So even if you had lots of equity in a property, a secured loan of that amount would still not come easy.

And never be deceived by the "enthusiasm" of the staff or even an automated website processing a loan application. Their job/the system is there to generate leads which then go to underwriting who are the ones who say no.

baz1975

Hi mate,
Newbie to the site but after listenin to a few problems i think everyone is in the same kinda boat.
I got a little bad history and luckily got sorted out with a company called familyfriendfinance.co.uk. I was a little worried at first but got a call back in minutes, and following a little chat where i disclosed a few late payments along the way i got fixed up with a loan with blackhorse who are massive and at a better rate than hsbc quoted me.
I didnt borrow as much as you mate only £8000 but it has really put me on my feet. give them a try mate as only takes 2 mins to fill out form....good hunting.

markelock

have you actually checked your credit file?

sometimes not having borrowed (and paid back) money also works against you.

BargainMad_3

baz1975 wrote: »

Hi mate,
Newbie to the site but after listenin to a few problems i think everyone is in the same kinda boat.
I got a little bad history and luckily got sorted out with a company called familyfriendfinance.co.uk. I was a little worried at first but got a call back in minutes, and following a little chat where i disclosed a few late payments along the way i got fixed up with a loan with blackhorse who are massive and at a better rate than hsbc quoted me.
I didnt borrow as much as you mate only £8000 but it has really put me on my feet. give them a try mate as only takes 2 mins to fill out form....good hunting.

I bet this was a SECURED loan though. I would be amazed if Black Horse did unsecured at the present time. It proves my point, people are finding it difficult to get loans backed with security never mind unsecured. Banking shares have fallen off (another) cliff today.