Loans newbie

Gentle_Ben

Hi all,

Just need some advice really regarding a loan/debt issues.

Basically I'm in desperate need of a newer car because I commute long distances, and because I'm struggling to keep on top of my £1K Lloyds TSB credit card I've decided to kill two birds with one stone by going for a loan of around £4K over 4 years.

The moneysupermarket.com website found me a number of loans, the best deal being with Northern Rock which I applied for a few days ago. I got a letter from them today declining my application with no apparent reason for their decision.

Now I'm unsure what to do. The fact they declined me suggests I have a bad credit rating and I've been informed that the number of times you apply for credit goes on your profile and works against you so I'm naturally reluctant to go applying for any more loans unless there's a good chance of my application being successful.

One thing that works in my favour in making a new application is the fact I've paid off one of my outstanding credit cards last weekend which should look better.

I'm also being interviewed for a new job on Tuesday which if successful will put me on £6K more per annum than what I'm earning at the minute.

My mum reckons I ought to get a copy of my credit history from this Equifax website to see what the score is but whatever it says there's nothing I change on it and it involves spending money to get it so I can't see the point myself!

If anyone can put me on the right track at this 'early' stage it would be much appreciated.


Ben

grumbler

Gentle_Ben wrote:

...declining my application with no apparent reason for their decision. ...The fact they declined me suggests I have a bad credit rating

1. Check your credit files: Your Credit Rating: How they decide and how you find out for free. You can order your files just for £2 each.
2. Try to appeal their decision. This will probably help to find out the reasons of rejection.

Gentle_Ben

Thanks for the reply Grumbler.

I have decided to take both snippets of advice you have given me, in fact before you replied I was on the phone to the lender asking for addresses to send any appeals etc.

And just this second I've finished printing off a letter to Equifax for my credit files.

Thanks again.



Ben

as400

Have you been to your bank in person and explained your situation and sought their advice?....sometimes this can add weight rather than applying over the net or by phone where a simple computer program decides if you statistically a good risk and makes a decision on that basis only.

Gentle_Ben

It's an option, but I've always found my bank (Natwest) to be very uninterested and I've only needed to ask their advice once, maybe twice in the 4 years I've been with them.

I might consider it if my appeal with NR gets me nowhere.

Another thing is, would moving job into a role with a higher salary look good or bad? A mate of mine said that moving jobs doesn't look good because it doesn't give an impression of stability?