no credit rating

Charlotte.Peers

Hi
I have just turned 18 living on my own in a private rented flat that i have been in for 10 months now in full time employment (have been with my current employer for 11 months)
i am in need of a car to get back and to work but dont have enough money so was going to get a loan for 1500 which i know i could afford unfortunatly all of the lenders are declining me. which i cant understand why as i have no credit cards or loans outstanding and havent got any credit.

has anyone else had this problem and if so how did you get around it.

thanks

rsykes2000

Unfortunately having had no credit in the past can be a bar to obtaining it in the future, as lenders don't have any records of trustworth behaviour to base judgements on. Martin's done an article about this with some tips : http://www.moneysavingexpert.com/banking/credit-rating-credit-score

Rafter

That is a quite a small loan and many lenders will reject you just because you are 18.

Would a parent or family member act as a guarantor for you? Are you on the electoral roll?

Best to try your current account provider and to apply face to face. Internet loans are generally for those earning a lot more and unfortunately as with car insurance, you may have to pay more to borrow, because they will see you as higher risk because you are young and haven't had a loan before.

Worth getting hold of a basic credit card if you can - always pay it in full by direct debit - but at least you will start to build up a credit history.

Good luck

R.