Time between loan applications

jowie

Hi,

I've read many times on here and other places that if you apply for credit too many times in a short period then it can affect your chances in being approved.

Afriend of mine is trying to get a loan for £7,500. He applied at Barclays and was turned down. There are many other places he wants to try, including Sainsbury's, Tesco and Cahoot, but how long should he leave it before applying for another one?

How many times can you apply before it starts affecting your credit history?

Thanks!

:-Joe

as400

Your friend should concentrate on why he was turned down. if there is something on his credit file that's dodgy then its a non starter.


Get credit reference reports from the three Credit Reference Agencies (costs £2 each or apply on line via their websites)

Not all financial institutions use the same CRA's...but generally 3 or more searches in one month will raise eyebrows.

jowie

Thanks for your reply.

We've already done searches on both Experian and Equifax. He used to be married with a mortgage five years ago, but since then he's used no credit cards or loans. So Equifax actually had no information on him at all, even with all previous addresses.

Experian CreditExpert, however, shows few late payment marks against a Hire Purchase agreement, and again against his old mortgage. These were no later than early 2001.

Recently he applied and was accepted for a Capital One credit card, so we thought this would be a good opportunity to see if he could get the loan he needs, but unfortunately Barclays turned him down (he'd already been turned down for a Barclaycard).

So is it worth waiting a short while to apply somewhere else? Or do you believe he is going to have to wait for another year before the marks against him disappear?

Is it worth buying one of these "Credit Score" things? I was wondering if it just gives you a score, or if it tells you a bit more about why your score is so low?

Obviously he's getting a loan because he does need one soon so if anyone has any ideas as to how to go about applying in a case like his, I'd be very grateful.

cheers

:-Joe

andymac746

Dont waste money on a credit score as every lender has different criteria to meet and give you there own score. Barclays and barclaycard are hard to get credit with at the moment due to losing 1.1billion with bad debts, they are rejecting over 50% of applicants.

Tell your friend to try nationwide or egg ive found them to be more accomodating than other companies.

jowie

okay thanks - he tried Nationwide but they seem to only do secured loans. Egg's a good bet then... Any experience with Cahoot, Tesco or Sainsbury's anyone?

andymac746

http://www.nationwide.co.uk/loans/default.htm?source=adv&campaign=PLN200508001&site_id=183589&page_id=11765968&ad_id=19640870&c_id=0

link to nationwide unsecured loans

jowie

hmmm that's strange.. That's the link we used before.

The application then specifically asked if he was a homeowner... when he ticked the NO box is went to a screen that said they couldnt process his request at this time.

I then chatted to some woman on their online help, and she said that he wouldn't be able to get a loan unless he was a homeowner. Was she barking up the wrong tree? Would it be best to go in to the branch and ask?

He already has a Nationwide account...

cheers

jowie

He just did Egg and got refused

This can't be good for his credit history can it? Should he keep applying for others?

tango

The fact that Equifax have no information on him at all will go against him.
After all the applications and refusals, he may have to reconsider his options.

jowie

so what options do he have if Equifax have no information on him? I mean, isn't this a bit of a Catch-22 situation?

At the moment I've lent him the money, but if he can't get a loan I'm stuck with his debt, and it's affecting my credit file...

tango

jowie wrote:

so what options do he have if Equifax have no information on him? I mean, isn't this a bit of a Catch-22 situation?

At the moment I've lent him the money, but if he can't get a loan I'm stuck with his debt, and it's affecting my credit file...

Hi Jowie,you are right it is a "Catch-22" situation, have you lent him the full amount?
If so,then you may have to agree some sought of repayment terms with him until some time has past and he can get a loan.
Get in touch with all the CRA as instructed on the information that comes with them, to see if they can offer any advice