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why are my loan applications being rejected?
lulabelle
Posts: 944 Forumite
Right, I really cannot understand this.
When I was a poor and struggling student, companies were willing to give me credit cards, store cards and loans galore.
Now, although I do have debts (£21,000 which is a loan from my bank which I never default on and pay monthly) I own a flat in London (mortgaged obviously and have never missed a payment), earn almost 60k per year, have savings, pay my credit cards in full every month and have not been overdrawn for over a year. Also, I now live in a different house with my partner (my flat is rented out) who earns over double what I do and has no adverse credit.
I have recently been offered the chance to purchase the freehold of my leasehold flat (75 years left on lease), price is good and good opportunity so I thought yeah, why not as will only have to pay the same to extend at a later date or take a hit on the price if I want to sell. Applied for 2 loans - 1 with Northern Rock and 1 with AA - both were good rates of 5.7% and was not going to be paying that much for the credit and got rejected by both with no reasons given!
Went to my bank who were willing to lend me 60% of what I needed (am going to have to take rest from savings) with not too much hassle.
Am applying to see my credit score as cannot believe it would be so bad and esp as purchasing something tangible which will add value to my property rather than going on holiday or something like that.
Does anyone have any views on why I might have been rejected? Have also recently cancelled a creit card which had a £9,000 limit on it so that if I needed to apply elsewhere there would be that amount freed up.
It makes me hopping mad that they are quite willing to exploit you as a student but when you actually really need the money for something other than beer or shopping they won't lend it to you!!!!!!!
When I was a poor and struggling student, companies were willing to give me credit cards, store cards and loans galore.
Now, although I do have debts (£21,000 which is a loan from my bank which I never default on and pay monthly) I own a flat in London (mortgaged obviously and have never missed a payment), earn almost 60k per year, have savings, pay my credit cards in full every month and have not been overdrawn for over a year. Also, I now live in a different house with my partner (my flat is rented out) who earns over double what I do and has no adverse credit.
I have recently been offered the chance to purchase the freehold of my leasehold flat (75 years left on lease), price is good and good opportunity so I thought yeah, why not as will only have to pay the same to extend at a later date or take a hit on the price if I want to sell. Applied for 2 loans - 1 with Northern Rock and 1 with AA - both were good rates of 5.7% and was not going to be paying that much for the credit and got rejected by both with no reasons given!
Went to my bank who were willing to lend me 60% of what I needed (am going to have to take rest from savings) with not too much hassle.
Am applying to see my credit score as cannot believe it would be so bad and esp as purchasing something tangible which will add value to my property rather than going on holiday or something like that.
Does anyone have any views on why I might have been rejected? Have also recently cancelled a creit card which had a £9,000 limit on it so that if I needed to apply elsewhere there would be that amount freed up.
It makes me hopping mad that they are quite willing to exploit you as a student but when you actually really need the money for something other than beer or shopping they won't lend it to you!!!!!!!
I want to be a writer
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Comments
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Possibly something to do with the address or an error but hopefully your credit rating will make it clear...hope you sort it...Nerd no 109 Long haulers supporters DFW #1! Even in the darkest moments, love and hope are always possible.0
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It can take quite a while for cancelled cards etc to be taken off your record but that shouldn't really cause it!
Definitely take a good look at your credit report in case there've been any errors that reflect badly on you.
I hope you get it sorted ok
Don't stress, relax, let life roll off your backs. Except for death and paying taxes, everything in life is only for now... Avenue QOfficial DFW Nerd Club - Member no. 003
Proud to have become debt free... and striving to keep it that way
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