Best Place to get a loan - often get refused but don't know why

lindseydaniel

Good evening,

I want to get a loan for a car. I am looking at borrowing £6000.

I am 33 and I earn £35,000 pa. I have a credit card with £1400 on it. No other debts.

I haven't applied for anything for about a year but I recently paid off a couple of loans early in November.

Where would be the easiest place to get accepted for a personal loan? For some reason I have a habit of getting declined even though when I have done credit reports it always says I have a good rating.

My wife is self employed and earns about £4000 a year. Should I do it in joint names?

Thanks

Daniel

Tixy

Hi Daniel

Do you have any other existing open credit accounts (even if you don't have balances on them?)

Do you have any adverse marks on your credit report (late payments/defaults/CCJs etc?) Did you check your report last time you were declined to see if there was anything incorrect/untoward on it?

Are you financially associated to your wife? joint mortgage, debts, overdrafts etc? could her credit rating be affecting yours?

A joint loan does not sound like a good idea given that she is self-employed and earns a small wage.

Aside from all these if you have maintained your current account well then your own bank are often a good place to approach as they already have knowledge of your good banking habits etc.

lindseydaniel

No other open credit accounts.

Credit report okay. No ccjs etc etc.

Only joint bank account with wife. She has an excellent credit rating.

Was thinking of asking bank but I recently paid a loan off early that I had with them.

Before you ask, the reason I am getting a loan (after recently paying off all my debts) is because my wife is pregnant and we now need a 7 seater car.

Tixy

If you do apply somewhere and get turned down again they try to get them to give you an indication as to why you were turned down - they usually will if you ask.

I'd still probably be tempted to ask the bank first (or you could go in branch and ask them informally whether the fact that you repaid the last one early will affect your chance of getting another)

VIGILANT22

Tixy wrote: »

If you do apply somewhere and get turned down again they try to get them to give you an indication as to why you were turned down - they usually will if you ask.QUOTE]

All they will say is you should obtain a copy of your credit report.....

Tixy

VIGILANT22 wrote: »

All they will say is you should obtain a copy of your credit report.....

They sometimes say that, but not always, it depends on what the issue is. Sometimes they'll say its down to affordability, sometimes because of something shown on your credit report.
When I last applied for a card it was refused and they (tesco) were very helpful - they told me my existing cards were too close to the limit to meet their criteria, they guy told me to reduce the balances away from the limits over the next 6months and then try applying again.