Rejected by Tesco & Bank - advice please!

kenh11

Hi all.

In the past few months I applied for a £10,000 loan through Tesco Finance and received the generic 'no' letter.

I then did a bit of digging using Experian Credit Expert to see what the problem is (and nearly got stung by QDL, but thats another story).

Turns out my credit rating is 920/999 or thereabouts, I have never missed a payment, and have no black marks of any note against my name, Im on the electoral register, and essentially had no idea why they rejected me.

So went to my bank (Natwest) for a chat and they rejected me also, basically because Im living out of a hefty overdraft and have been doing so for a few years, and they have to be more careful with lending blah blah blah.

So I need some advice of where to go next, I dont want to keep going round applying for every loan going as it will drag my rating down, but as cliched as it sounds I do need this loan to sort myself out, trust me Ive been crunching the numbers for months.

So what 'reputable' and 'trustworthy' lenders are out there who would lend to me, after being rejected by the bank and Tesco?

Thanks.

Tixy

Do you have other outstanding debts as well as the overdraft? other open credit available to you?
If so you may well have been rejected for having too much existing credit and/or debt.

kenh11

I have two things that this loan was primarily going to be used to pay for, the first is car finance and the second is an old graduate loan from Natwest.

Neither are behind in payments nor have I missed payments.

Tixy

A lender will look at all your current available credit (used or not) so the balance owing on both the loans and if you have an overdraft or any open credit/store cards add on the total credit limit for those. Then a lender will add this figure to the amount you want to borrow.

They will compare that total exposure figure to your salary to judge if you can afford the loan (the fact that you intend to consolidate won't make a difference as for all they know you could just blow the whole new loan amount).

If that figure is over 50% of your income then your chances of getting high street credit at the moment is fairly low. And if you go to subprime lenders then the interest rates are likely to be higher than you are paying currently.

Not sure if this is the issue in your case without knowing more figures - but it is a common reason people are turned down and they don't know why.

kenh11

I am on a comparatively low salary at the moment, however according to the terms of acceptance on Tesco's website in particular I am way over the minimum salary you need to be earning.

Never had a credit card or a store card in my life, the loan was essentially going to be used to get me out of my overdraft so I can then reduce that right down, pay off oustanding car finance on a car that is dying so I can give that back then buy a replacement outright, and pay off an old graduate loan.

As said, Natwest explained the basic reason I was rejected was mainly because I am living out of an overdraft and have been doing for far too long.

So the main highstreet banks and lenders are probably out of the question, what I want to know is where is the best place to turn to next rather than applying to people all over the place?

WTTM

kenh11 wrote: »

Hi all.

In the past few months I applied for a £10,000 loan through Tesco Finance and received the generic 'no' letter.

I then did a bit of digging using Experian Credit Expert to see what the problem is (and nearly got stung by QDL, but thats another story).

Turns out my credit rating is 920/999 or thereabouts, I have never missed a payment, and have no black marks of any note against my name, Im on the electoral register, and essentially had no idea why they rejected me.

So went to my bank (Natwest) for a chat and they rejected me also, basically because Im living out of a hefty overdraft and have been doing so for a few years, and they have to be more careful with lending blah blah blah.

So I need some advice of where to go next, I dont want to keep going round applying for every loan going as it will drag my rating down, but as cliched as it sounds I do need this loan to sort myself out, trust me Ive been crunching the numbers for months.

So what 'reputable' and 'trustworthy' lenders are out there who would lend to me, after being rejected by the bank and Tesco?

Thanks.

So you think your credit rating etc.. is all good and don't know how you got KB'd for a £10k loan..... and you live out of your overdraft....

I would say the banks think you can't afford a loan and it seems that way to me.


MOMENT

kenh11

Ok so lets jump right back to the start.

I know the reason I got rejected for the loan is due to the fact I am living out of my overdraft.

I fully understand and appreciate this from the banks point of view.

However, the main question I am asking is where do I go next.

Its fully understandable that many may say I just need to save or sort things out on my own, however after thinking this over for what must be 5 or 6 months a loan is the direction I am heading in.

As there are a plethora of lenders out there I just need some advice as to who is more likely to accept a loan application in a situation such as mine?

WTTM

kenh11 wrote: »

Ok so lets jump right back to the start.

I know the reason I got rejected for the loan is due to the fact I am living out of my overdraft.

I fully understand and appreciate this from the banks point of view.

However, the main question I am asking is where do I go next.

Its fully understandable that many may say I just need to save or sort things out on my own, however after thinking this over for what must be 5 or 6 months a loan is the direction I am heading in.

As there are a plethora of lenders out there I just need some advice as to who is more likely to accept a loan application in a situation such as mine?

In your situation - any sub prime lender with sky high interst rates would be a starting point.


MOMENT

kenh11

So really there would be no chance an even half reputable bank or lender would take a look at me in my situation?

kenh11

stclair wrote: »

Did you mention to them about clearing the overdraft with part of the loan?

I did, despite the fact the lady at the bank was very friendly and chatty she basically didn't want to hear it and said there is nothing they could do.

I broke down to the penny what the loan would be used for, and tried to explain I am in a catch 22.

Want a loan to get out of my overdraft - can't get a loan as I am in my overdraft.

She suggested I come back in 6 months if I have gotten out of the overdraft but that until I am then they won't be able to provide me with the loan.

stephane_2

What is your debt total including your overdraft?
What is your annual income?