Why Cant I Get a Loan?

aidanjones88

Hi there,
I do not really understand much about credit scores and how you get accepted or declined for a loan but I am confused as to why I have been declined for a personal laon?

I have just passed university and plan to take a trip to japan to celebrate, this being quite expensive requires me to get a loan to pay for it. worth it in my opinion though.

Anyway I applied to abbey and got declined so i then decided to apply at my own bank, bank of scotland. slightly higher apr but that did not bother me, declined again so i created an account with Credit Expert and here is what my record looks like

I am trying to borrow £1,700

I am a delivery driver (while looking for a job with my degree) earn £11,000 a year


Number of credit accounts (including those settled)..................................................10


Amount of available credit (excluding mortgages)...........................................£2,420



% of your total credit being used (excluding mortgages)........................................40%



Amount of outstanding debt (excluding mortgages and defaults)........................£13,980



Number of accounts overdue...................................................................................0



Number of missed or late repayments in the last year...............................................0

Number of times your credit report has been searched in the past 3 months................4

Number of public information records on your report ................................................0

Are you registered on the electoral roll at your current address..............................Yes

Does anybody have any advice? the credit accounts i have open at the moment are

Argos card
Comet card
Credit card
Car finance
Mobile phone

thats the lot.

Never missed any payments, always been up to date and I have incurred interest so i know its not because i pay it off in full.

Apples2

You already owe more than your salary.

You will struggle to get anything at all. General consensus is that debts over 50% of your salary are going to turn lenders off.

How do you intend servicing all your debts whilst in Japan?

aidanjones88

Sorry just wanted to add that i got credit expert to check for loans for me using my credit score to find the loans that they think are suitable for me and they recommended the bank of scotland one. the very one that i was declined for.

aidanjones88

im planing to go to japan for 3 weeks. during which time i will receive full pay from holiday pay

fabforty

Is the £13900 debt your student loan?

If not, then the banks probably think you have too much unsecured debt. Although you are working, it's not the job that you studied for and (if full-time) is on a relatively low wage. You already owe more than your annual salary and are now looking to borrow the equivalent of two months take home pay. Banks have tightened up on their lending (about time). I'm sorry to say, they have refused you for a reason.

aidanjones88

fabforty wrote: »

Is the £13900 debt your student loan?

If not, then the banks probably think you have too much unsecured debt. Although you are working, it's not the job that you studied for and (if full-time) is on a relatively low wage. You already owe more than your annual salary and are now looking to borrow the equivalent of two months take home pay. Banks have tightened up on their lending (about time). I'm sorry to say, they have refused you for a reason.

hey there.
£12,300 of it is secured against the car i own. that was car finance. i have a few hundred left on an argos card (will be paid in full when i get my statement in january) £600 is on the comet card which will be paid by feb and the rest (About £700) is a BOS credit card

Im also still living with parents and pay no rent or council tax. no obligations like that. they asked that in the loan process. is that taken into account at all?

fabforty

You have listed a credit card - if it has a low rate, can't you put your holiday on that?

aidanjones88

It is 13% apr. i could but the problem is myself and another friend are going so i need to book the hotel and flights togethor (through expedia) which comes to just over £2,000 and the credit limit is £1500. so he was going to give me his share to put into the bank before booking.

Apples2

Did any adults try to advise you before committing more than your salary on a car??

aidanjones88

Apples2 wrote: »

Did any adults try to advise you before committing more than your salary on a car??

lol beleive it or not. its easily affordable, im only paying £230 a month for it. it is worth the cost

Apples2

aidanjones88 wrote: »

. it is worth the cost

Is it worth not being able to get a loan either now, or for many years to come??

Sorry but from the little info we see so far, buying that car is the single biggest mistake of your life.

:)