Credit History and refused loan?

stockmarket-diva

Hi

I'm really concerned. My husband earns £40k p.a. I'm self employed and should earn £20k this year which will increase (hopefully) once my business goes on for longer.

I have no loans as such ie a couple of credit cards but no hp etc. I own my cars outright etc. I also have a mortgage but have about £250k equity.

My sister on the other hand does not have the same income, has many many loans which they have no problem getting.

I am really distressed because I applied for a £5k home improvement loan to put some new windows in and was refused!! Of course they can't tell you why but I can only assume it might be because I don't have enough loans.

Can anyone shed any light on this. I am offended by the refusal and don't know what to do as I don't want to start applying willy nilly and then it goes against my credit record.

Thanks

JustTakeAllMyMoney

Hi,

Could be for the reason you mention, but its also worth considering that you said you were 'self employed'. I'm self employed as well and I know for things like mortgages etc lenders look to see good cash flow / income and accounts for the last couple of years. For things like loans and credit cards I've found it easier to approach my own bank as they already know your history, and don't need you to produce loads of paper work, as long as you have that history with them.

Could also be may be something incorrect on your credit file, I used https://www.equifax.co.uk they do an online report, you have to pay but then you can see they see :0)

grumbler

It is always worth trying to appeal. Even if without success, it will probably help to find out the reasons of rejection. Also our credit history is not always what we think. Mistakes happen. Have you seen your credit files? See Credit Rating link in the blue box above.

stockmarket-diva

I think you might be right about the self employed thing.

I've only been doing it for 6 months so hardly a good risk. However I thought that the other income and equity would have stood me in good stead.

Chrysalis

wow another example of the inconsisitent system.

you the first person I heard of that is a home owner that has been denied a loan, I know my dad who is self employed got treated badly but always used the house or his car for security to get loans.

stockmarket-diva

Thats really scary Chrysalis. I really don't understand why that would be except that I haven't asked for a secured loan which would of course use the fact that i'm a homeowner.

Like I said, my sister has used all her equity up in loans and I'm sitting here with a good salary coming in and lots of equity etc.

Can anyone else shed any light on what I might have done wrong.