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Problem getting loan
I work with a colleague who is 19. Has an overdraft limit of £100 but does not currently use it.
She applied for a loan with her bankers (lloyds) last year for a car and was accepted but with a rate of about 18%. She was advised to pay her overdraft off (she had one at the time) and come back when the rate would be more beneficial.
She did that - reapplied for the loan and was turned down, for unclear reasons to me. She then tried a variety of companies for a loan - including one called promise. She was finally accepted at a rate of 63%. She declined. She was then advised to apply for a credit card to try and get her credit rating up a little, but has been declined for every one.
She got her credit report and there is no adverse information on the report - EXCEPT for 16 credit searches in a very short period of time. Not all of them she knows of and thinks that maybe Promise passed her details on.
What if any can she do about the searches, and does anyone know how she can build up her credit. She lives at home with mum and dad and there is no other adverse history at her address.
Your help would be appreciated (its a shame they weren't this tough with me)
She applied for a loan with her bankers (lloyds) last year for a car and was accepted but with a rate of about 18%. She was advised to pay her overdraft off (she had one at the time) and come back when the rate would be more beneficial.
She did that - reapplied for the loan and was turned down, for unclear reasons to me. She then tried a variety of companies for a loan - including one called promise. She was finally accepted at a rate of 63%. She declined. She was then advised to apply for a credit card to try and get her credit rating up a little, but has been declined for every one.
She got her credit report and there is no adverse information on the report - EXCEPT for 16 credit searches in a very short period of time. Not all of them she knows of and thinks that maybe Promise passed her details on.
What if any can she do about the searches, and does anyone know how she can build up her credit. She lives at home with mum and dad and there is no other adverse history at her address.
Your help would be appreciated (its a shame they weren't this tough with me)
Quality is doing something right when no one is looking - Henry Ford
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Comments
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She needs to stop applying for credit. I think credit searches drop off the record after 6 months.
During that 6 months she should save the repayments she would have made and put that amount down as a deposit for the car - so she will end up borrowing less.
CheersWarning ..... I'm a peri-menopausal axe-wielding maniac
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just to say - 63%????? OMG!!!
Yes, stop applying for a bit!!Debt free 4th April 2007.
New house. Bigger mortgage. MFWB after I have my buffer cash in place.0 -
thanks emmzi. Couldn't think straight for a while, but what a good idea. She has already bought the car (I think parents bought it for her) but it keeps breaking down, so she wants to buy a newer car.
Saving for six months is a good idea. she is going to do that.
Are you hungry yet!Quality is doing something right when no one is looking - Henry Ford
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Searches stay on your file for 12 months, although I've been led to believe that some companies only take into account any in the last 6 months.0
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In addition to searches, at 19 she is unlikely to have much credit history, certainly won't have much time in current employment and all kinds of other factors that loan companies use.
Could her parents not take the loan out for her or at least offer some sort of security for it so she can get a sensible rate?
R.Smile
, it makes people wonder what you have been up to.0
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