Loans available for people with no credit score? Please help!

strawberryflavouredpixie

Hey everyone,
My boyfriend is currently trying to get a loan, to pay for a few bills we have outstanding, and to try and put some money towards a holiday. We went to his bank (Halifax) to try and apply for a loan, but they said they couldnt lend him anything, because he had no credit score? They recommended he applied for a credit card for people with bad or no credit, so he has applied for a capital one card, which he will find out if hes got within the next week. But does anybody know of any loans which he might be able to apply for? We'd rather do that than use the credit card, and unfortunately i cant apply for the loan with him as im a full time student, and so they wont accept me at all.

Any help or advice would be greatly appreciated =]. Thank you!

Rafter

pixie,

It will probably take 6 months of using the capital one card to start to build a 'score'. Effectively Halifax will be looking to see he is a regular repayer of debt and can manage it.

Odd that halifax as his bank wouldn't lend. Although they might not have liked the fact that you were looking for money for debt consolidation and a holiday rather than something like a car or house improvements.

How much does he earn, how much are you looking to borrow?

R.

strawberryflavouredpixie

he was hoping to borrow 3000, but we asked halifax for 1000 to begin with, but they still said no. he earns about 13000 a year after tax, and all of his wages go into the same halifax account...but they also denied his application for a bigger overdraft, as he only has a £100 one now.

Pixie

Rafter

You may be unluckly that Halifax are simply not lending at the moment or are getting too many losses on existing loans to want to take out more.

With loans it is all about affordability and from what you have said, that is not a huge amount of borrowing to ask for.

It looks as if that holiday might have to wait unless you borrow from someone with less strict rules that Halifax, but who might charge you a really nasty rate of interest.

R.

andy208833

why get further into debt by asking for money for a holiday? surely use any extra you have to pay your bills off then save for a holiday would be better?

strawberryflavouredpixie

yeah, it could be that they just done want to lend to anybody at the moment...to be fair, we could afford the holiday by saving up, my boyfriend just really wanted to get some form of credit score, up until now hes been refused internet, contract phones, sky and even things like littlewoods accounts lol.
but thanks for all your help and advice =]. i think he may try to find a small loan with a less strict lender, even if it means paying back a larger amount.
thank you!

Typhoon2000

No that makes no sense. If you can pay your bills and holiday by saving there is no need to get a high interest loan to build a credit history. Get a credit card like Vanquis and pay back in full every month.
Try applying through your bank after 6 months or so for a 'normal' loan if you still need one.

CLAPTON

1300 is a relatively modest income... too modest to have debts and to waste his money paying interest to banks rather than spending it on you.

he should concentrate on clearing all his debts asap and then establish a saving habit and only spend the savings.

as already said a credit card like vanquis will help establish a credit record but the APRs are awful so it's very important its paid in full each month (set up a DD to pay in full)

TheGrant

I think there's something else here. It's not that difficult to get a contract phone.

Despite his income, there is a need to be credit worthy to obtain certain services. The fact he has a bank account and an overdraft should be enough to get you basic stuff like the internet and a mobile.

Is he on the electoral register? Does his postcode match up with his address on the Royal Mail website? Take a look at the stuff on the site on Credit Scoring. Also look at Experian and Equifax's sites.

I think he may need to get his credit report from those two agencies. It will cost two quid. See if what is on those reports is correct.

Can he think of anything in the past that could be stopping him getting credit? Have the people who have refused him the internet etc given any clues? (Other than Halifax's no score reply)

Best of luck with it.