turned down

dhevo

Hi

I've recently been turned down for a loan and don't know why. I'm on the electoral role, have no late payments on mortgage/credit card and a loan has jus been paid off.

Is it worth applying for a smaller amount or would this too be rejected?

Thanks

jon09

Have you checked your credit report?

dhevo

We haven't had an Experian report but have used the one on this site and it was 'good'. Most lenders would consider us a low risk

jon09

Who was the lender?

kinglewis

Too much credit outstanding already?? (in the opinion of the lender)

dhevo

The lender was Alliance and Leicester, who we have a curent account and isas with and a loan already.

The new loan was to pay the balance of the outstanding loan with the remainder to buy a car. This would have left us with just the 1 new loan. We have had 3 previous loans with A&L and have never been turned down for credit before.

Dan:_4

Did you apply for a new loan, or a 'top-up' on your existing loan?

CLAPTON

how much is your current debt
how much do you earn
mortgage?

dhevo

We applied for a new loan. After mortgage and other bills come out we have about £1000 disposable per month. New loan was only £60 per month more than what we are already paying.

ChefBungle

dhevo wrote: »

We applied for a new loan. After mortgage and other bills come out we have about £1000 disposable per month. New loan was only £60 per month more than what we are already paying.

Hey,

The best thing in this situation would have been to phone up customer services and say you wanted to "top up" the loan or "roll it over".

It is likely that if you've just applied for a new loan on the website or via a paper-based form, that they've missed the fact you want to pay off the existing loan.

Unfortunately many creditors are tightening their lending criteria - what might previously have been seen as a good risk is now being viewed differently in some situations.

But as the previous posters have pointed out, the percentage of the maximum credit available to you that you've actually taken out can play a significant part.

Best thing to do now is to get a copy of your credit report from Experian or Equifax (you can do it online for free) and just make sure there's nothing on there which shouldn't be or that you were unaware of. Then phone A&L and explain the situation and see if there's anything they can do.

dhevo

Thanks very much. Apparantly there is an appeals procedure we can go through, do you think it is worth doing? Reading other posts, A&L have turned down many people but that Tesco have accepted them. Is it worth appling for a smaller amount with another lender?

What would you do?