Waste of time loan application

Deb-t_2

Just wanted to vent about my current situation and see if anyone can help ! Having a HUGE amount of debt, I finally faced facts, read the guides on the web site here and set about trying to reduce my loan/credit card repayments. (I'm currently in the unpleasant position where debt repayment is my biggest outgoing, which is forcing me into more debt as I can't afford not to rely on re-spending on credit cards). SO - I applied for a personal loan from Natwest, a bank I've been with for 10 years and who have always been keen to offer me credit before. I applied for £20k in a bid to reduce the interest rate of my overall debt. My loan application has been turned down, despite my requests for feedback it seems that 'computer says no' is the only thing they can tell me. I asked for advice and whether an application for a lower amount would be accepted, but was only told not to apply for at least 3 months as every check on my credit rating is used as a reason not to lend to me. Is it just me or is that completely unhelpful ?? :wall:

illmonkey

humm... weird. Im with natwest, when ever i go in there chucknig loans at me. I have had 1 natwest load for £9k for a car. which went through fine. The 3 month rule is strange, i have applied at places (not natwest) more than once for a loan.

Have you thought about EGG? there good, i have 7.9% (high i know) but its all online and there very good with any problems you have. i took out a £12K (:O) loan with them and they have been great!

good luck in sorting out the loan. Keep up the payments
(good sig by the way )

daveboy

Deb-t wrote:

'computer says no'

Why is it that television programmes get a mention in financial matters?

Well, it was better than them going, yeah but, no but......

There could be a number of reasons for you being declined.....one of which being that they'll be able to see the borrowing you already have. Making numerous applications for credit will damage any small chances you have so isn't a good idea.

I was once in this position, had £9,000 debt and was struggling. Thankfully I dug myself out of it by cutting right back.

It may be worth getting your credit file from Experian to check what is on it. I do this once a year just to keep up to date - it costs £2.

With reference to your signature, so do I sometimes. I think I've got to the age now where I do what my Mum would do though, it's those years from 18 to (nearly) 25 that caused the problems.

Moglex

Deb-t wrote:

Just wanted to vent about my current situation and see if anyone can help ! Having a HUGE amount of debt, I finally faced facts, read the guides on the web site here and set about trying to reduce my loan/credit card repayments. (I'm currently in the unpleasant position where debt repayment is my biggest outgoing, which is forcing me into more debt as I can't afford not to rely on re-spending on credit cards). SO - I applied for a personal loan from Natwest, a bank I've been with for 10 years and who have always been keen to offer me credit before. I applied for £20k in a bid to reduce the interest rate of my overall debt. My loan application has been turned down, despite my requests for feedback it seems that 'computer says no' is the only thing they can tell me. I asked for advice and whether an application for a lower amount would be accepted, but was only told not to apply for at least 3 months as every check on my credit rating is used as a reason not to lend to me. Is it just me or is that completely unhelpful ?? :wall:

Nat West are just plain weird.

In 1999, after a short period of unemployment I got a consultancy contract with a small, little known company by the name of Motorola. As I needed to rent somewhere to live and stay in a hotel until that was arranged, I asked to borrow £1,000.

I was taken into a little room where a woman started filling in the appropriate form.

Q: How much was I getting paid?
A: £2000 a week.

Q: How long was the contract for?
A: 6 Months minimum.

Q: With whom?
A: Motorola.

I thought this should be sufficient, given that half the first weeks pay would cover the loan, but, no, she proceeded to ask me about all my outgoings, right down to the tv licence direct debit. Naturally, I could not answer all of these questions exactly as I didn't know where I was going to live.

Anyway, we eventually came up with outgoings of around £300 per month + rent.

I'd just add that I'd been with Nat West for over 20 years at this point.

Anyway, the woman went away, and ten minutes later came back and said: "The computer says: No".

It was really too funny to get annoyed about.

I probably actually saved money because it only cost me £15 to borrow the money on a credit card and I paid it back before any interest was due. Their 'arrangement' fee would probably be more than that.

Damned strange, nonetheless.

Catch_A_Fire

Moglex wrote:

Nat West are just plain weird.

I asked to borrow £1,000.

Q: How much was I getting paid?
A: £2000 a week.

Q: How long was the contract for?
A: 6 Months minimum.

Anyway, the woman went away, and ten minutes later came back and said: "The computer says: No".

Was this a standard unsecured loan? How long a period did you intend to repay it?

If the minimum laon term was 12 months and your contract was only guaranteed to be 6 they may have rejected you regardless of your income or other circumstances. Alternatively they may require a temporary contract to be longer than 6 months.

Mark7799

Welcome to the wonderful wacky world of lending controlled by credit scoring.

Probably 15 years ago, you would have been seen by a manager (or even an assistant manager) with the authority to make a common sense decision.

jobbingmusician

This suggestion is offered as a helpful intention - MANY apologies if it sounds stupid or anything.

It's simply - BUY MARTIN'S BOOK AND READ THE SECTION ON CREDIT SCORING! When I read the book I realised that I already knew quite a lot of the stuff he writes about. But quite a lot of the bizaare credit scoring rules were new to me. £3.99 VERY well spent! :rudolf:

IvanOpinion

On one hand we have people complaining that credit is too easy to get and on the other hand people complain that they can not get credit. It appears that all companies are rightly tightening up simply because people have borrowed irresponsibly. I think this is an unfair vent. Computer scoring is getting more and more important .. in the past people were allowed to override the computers decisions willy-nilly, now many lenders are allowing the computers to have the last word. In another few years I reckon your credit scoring will be one of the most important things in your life (a bit like America).

It is good that you are getting round to trying to sort things out but I would advise you to do two things: Firstly, try asking for advice on the 'loans' or 'debt free wannabe' sections of this board, there are several very helpful people in there. Secondly, try talking to an independent financial advisor, they often know of different products and better deals.

Good luck whatever you do

ivan