Why won't they lend to me?

penny_pitstop

I have tried to get a loan (for around £8,000) but was refused.

I own my own home with no mortgage, don't have any other loans, I have credit cards but up to date with that as are all bill payments etc. I am always in credit with my bank too.

Why won't they lend to me?

jonesMUFCforever

First check your files with Experian.
Who did you try to get the loan from?
Try your own bank first or even get a mortgage on your property if you really need the money.

penny_pitstop

My bank won't even give me an overdraft! I haven't owed any money for about 10 years so there shouldn't be anything on my file should there?

kindofagilr

Thats the problem, cos you have no credit on your file, they dont know how you will be with repayments.

I see people on here advising to get a high interest rate credit card like Capital One use if for shopping but pay it off in full every month that will then build your credit score?

Dont mind me asking but if you dont owe any money to anyone can you not save up the 8k? I know it will take a little while

penny_pitstop

Just for the record, I asked this question on behalf of a friend.

They need a new car for his work urgently so they applied for a loan but were refused. They usually save if they need something but in this case they just don't have the time to.

pwally2

if its for a car wouldnt a dealer give them the finance to pay for the car and maybe even a0% deal if they have a deposit available and then look to pay this off quicker than the agreement length if they have the money available

penny_pitstop

I believe they want to buy privately as you often get a better deal.

Ken_Ivory

Have you tried a guarantor loan?

ILW

penny_pitstop wrote: »

My bank won't even give me an overdraft! I haven't owed any money for about 10 years so there shouldn't be anything on my file should there?

You havn't mentioned income or employment status. Problem could be there.

penny_pitstop

ILW wrote: »

You havn't mentioned income or employment status. Problem could be there.

They both work, one full time and one part time.

RobertoMoir

If they have no real credit history for the normal lenders to evaluate then the deals they may be able to get through the car company may be the best of what's on offer. Have they tried their own bank?

Without wanting to sound patronising, lenders don't have to lend to anyone and given all the financial upheaval lately they have gone back to being extremely fussy about who they have as a customer.