Applied for loan

Mightyowl

Just applied for a loan of 4k with my bank, said at the end of application we will be in contact within 5 days!

Should i be hopeful? only been banking with them for just over 3 months, i have £1300 going in every month and £800 of that goes straight into a saving account with the same bank

Rafter

Sounds like affordability won't be an issue for you.

It really depends how you measure up against the banks 'scorecard'.

This will include measures such as your credit history (on Experian or Equifax or both) as well as an assessment of affordability and whether applicants 'like you' have been good at making payments in the past.

It will also depend whether that bank is looking to grow or reduce its current loan book and how fussy they are being about which applicants to select.

If you get declined, try one other application and I suggest you apply for £5k rather than £4k as you are likely to get a much better rate.

Try using the smart search on moneysupermarket to find a provider who is likely to accept you. No point applying to lenders who are only making offers to people earning >£30k per year for example.

Good luck

R.

Mightyowl

Cheers for your input!

Fingers crossed!

Mightyowl

Just checked my experian report, no credit search at present!

Is this usual?

Clive_Woody

Mightyowl wrote: »

Just applied for a loan of 4k with my bank, said at the end of application we will be in contact within 5 days!

Should i be hopeful? only been banking with them for just over 3 months, i have £1300 going in every month and £800 of that goes straight into a saving account with the same bank

If you are paying £800 into savings would it not make more sense to take £4k out of your own savings. I would imagine the interest you would lose from your savings account would be less than you would pay out on a loan (compare your loan APR with your savings account APR).


EDIT: Just noticed you said you have only been banking with them for 3 months so you will only have £2400 in savings. Could you not wait a couple more months to make it up to the £4K and use that instead of a loan?

Mightyowl

Clive_Woody wrote: »

If you are paying £800 into savings would it not make more sense to take £4k out of your own savings. I would imagine the interest you would lose from your savings account would be less than you would pay out on a loan (compare your loan APR with your savings account APR).


EDIT: Just noticed you said you have only been banking with them for 3 months so you will only have £2400 in savings. Could you not wait a couple more months to make it up to the £4K and use that instead of a loan?

Two reasons for not saving the 4k!

1) I have seen a motorbike that i fancy and it won't be around for long.
2) I want to prove to lenders that i pay my debts.


Still heard nothing through email/letter! not even showing on my Experian which seems strange

Mightyowl

Declined!

Just spoke to a lady on the phone who said it was an internal credit score, and because i have only been a customer for 3 months.

Cash_Flow

Mightyowl wrote: »

Declined!

Just spoke to a lady on the phone who said it was an internal credit score, and because i have only been a customer for 3 months.

What Bank?

Mightyowl

Barclays

I've just applied and been accepted for they credit card tho!

ADJAFC

Is the bike available at a dealership? If so why not use their finance, with a deposit of £2,400 i'm sure you'd get accepted.

Cash_Flow

Mightyowl wrote: »

Barclays

I'vee just applied and been accepted for they credit card tho!

Nice one.

Thanks for the Information.