Denied Loan

Adam345_2

I've just been denied an Alliance and Leicester loan and was wondering what the likely cause was.

The Loan is for a 2nd hand car & to pay off a small amount of an existing loan, £5000 over 4 years with no payment protection. I'm renting at a place ive been at for 6 months, before that i lived at at same address for 7 years.

My incomings a month are 1400, direct debit outgoings in total 550. Been at current employer for 1 year 5 months.

My credit I believe is good, however I did apply for a couple of loans just before I moved address, the interest was a bit too high so I rejected them.

I have no store cards however my bank account has an £1800 overdraft which I have never used.

I could see possible problems with most of the above with the credit crunch but was wondering if anything stands out, also how long should you normally wait before trying another loan company?

Many thanks.

~Brock~

The fact that you have only been at your present address for 6 months means you may not yet be on the electoral roll and this would have an effect, as well as your renting status (they prefer homeowners). Most lenders are pulling their horns in right now so I wouldn't be too upset about it.

Do you bank with Alliance & Leicester? If not then the first place to start would probably be your own bank who can see your income and spending habits better than anyone else.

di3004

Adam345 wrote: »

I've just been denied an Alliance and Leicester loan and was wondering what the likely cause was.

The Loan is for a 2nd hand car & to pay off a small amount of an existing loan, £5000 over 4 years with no payment protection. I'm renting at a place ive been at for 6 months, before that i lived at at same address for 7 years.

My incomings a month are 1400, direct debit outgoings in total 550. Been at current employer for 1 year 5 months.

My credit I believe is good, however I did apply for a couple of loans just before I moved address, the interest was a bit too high so I rejected them.

I have no store cards however my bank account has an £1800 overdraft which I have never used.

I could see possible problems with most of the above with the credit crunch but was wondering if anything stands out, also how long should you normally wait before trying another loan company?

Many thanks.

Hi there
Sorry to hear of this.
I do think things are getting tougher now for all.

I do not know how this actually works but have you thought of checking this out on a 30 day trial for I think its either Equifax or Experian report, this may give you some answers, although I'm not certain, but you state you have applied for a couple of loans and rejected them, this may have something to do with it and it would show up on the credit report to what I know of.

I think someone else will be able to give you an idea of this but think there is a few months before trying the same company again to what I know of.

Sometimes you can still have a good credit rating and these things unfortunately happen, it does not actually mean your unable to have credit.

I do hope this sorts out and hope you get what you need soon, good luck!;)

Di

CLAPTON

what advantage do you see in getting a new loan to pay the old one off?

why not buy a car for 1k .. lots of reliable cars these days at that price.

your income is 1400, DD payments 550 so where does the other 950 go? best to work out a proper budget and start saving for things you need

LiamJ

I'm with Clapton on this. Don't become one of the many on this forum who get thoughtlessly into debt and then have big problems getting out of it when something "unexpected" happens.

Adam345_2

I checked with the council and I don't appear on the electoral register for my current address untill December 1st.

I should have thought about that before I applied.

Apart from Direct Debits my money goes on food/petrol/other loan etc.

I rang up about paying off the current loan recently but decided it made more sense to use the money to buy things I need for my new address, as this is my first place. Mainly due to it being near the end of the loan and I thought it would help my credit to just ride out the last few months rather than settling early (also, doesn't the interest amount tail off towards the end of the loan, so I wouldnt be saving money by paying off at such a late stage?).

The main reason I wanted the Loan now was theres a particular car I have been after and they don't appear for sale very often in the condition this one was in.

Now that I have finished buying the essentials for my house I can start saving again, but a loan may come in handy if another one were to pop up.

How long should I wait before applying for another loan after being denied for this one? Would it be silly to apply in December after i am on the Register for my new address or is that too soon? Also, would it also affect applying for small things such as a mobile phone contract etc?

Many thanks for your help all.