Can't get a loan - advice needed

waveydavy

Hi All
This is my first post so please be gentle with me!

I have 2 defaults from Jan 05 - one for £1300 settled in full and one which is partially settled (agreement with creditor - £142 written off).

I now have a good job - c£50k pa and a mortgage, which I have had for over 3 years (c£50k positive equity).

My bank Llloyds TSB tell me my account is in excellent order (rated 2 with 1 being highest rating, 9 the lowest).

I have an experian credit rating of 900.

I am on the electoral roll etc and have had my job for 2 1/2 years.

I have one credit card with a £1500 limit and around £200 credit available.

I have a car loan with Lloyds (£4k over 3 years with £1200 out standing).

I have no other loans or cards, and so have a significant amount of disposable income.

I have no missed payments etc in the last few years and have really cleaned up my act.

However I am trying to get a loan for £7k to buy a new car (which I can easily afford), but Lloyds wont lend to me, despite having lent to me 2 1/2 years ago as their criteria have apparently become much stricter.

Any advice? Are Lloyds particularly strict - or will I be rejected everywhere apart from the sub prime lenders (which I don't want to touch with a bargepole tbh.)

Please don't say 'save up the money' - that's not what I am asking

I really regret the defaults, but was hoping that as they are settled/satisfied, I would be able to put them behind me. However this doesnt seem to be the case...

Any advice would be greatly appreciated.

Thanks

Dave

neneromanova

Where abouts are you looking to get the car from? The internet or a car dealer? And will you be selling the other car?

waveydavy

Hi
Thanks for your reply.

I have a private buyer lined up for my car but it wont quite cover the outstanding amount, so am hoping to use about £3-500 of the loan to clear this and then either buy the new car from a dealer or privately - doesn't really matter to me either way.

neneromanova

Well i was just asking because when I bought my beetle I took my old ford KA into a dealer, explained my situation, that I wanted a beetle but had a loan and wanted the loan cleared on my KA to buy the beetle. They cleared my loan for me and gave me an HP loan for the beetle. I stupidly took out a bank loan though for the car which i wish I hadn't as I can hardly afford it now, but had I taken out the HP loan (this was 3 years ago) in May I could just had back the keys and say I couldn't afford it anymore.

So I'd go to your local dealer for the car you like and see what they say. They want your money so will do everything to help

waveydavy

Thanks for your reply - I might give that a go - cheers!

PNPSUKNET

I have one credit card with a £1500 limit and around £200 credit available.

I have a car loan with Lloyds (£4k over 3 years with £1200 out standing).

These could be the problems, if you have so much disposable why not pay the card off?

waveydavy

Hi - thanks for your reply.
Lloyds bsically said that the defaults were the problem, didn't mention the card.

I could certainly pay the card off in a couple of months. Do you really think this would make a significant difference? The payments are on time etc...

Thanks

Dave

CHR15

The defaults will stay with you for 6yrs, they will be a issue until they fall off your record.

The partially settled one may be more of an issue (not sure), this may be one of the drawbacks with people getting money written off, great at the time, but long term consequences are pretty severe.

waveydavy

Thanks - I guess I hoped that settled defaults would be less harmful.

If even settled defaults stop me getting credit, then where is the incentive to pay them back?

Surely every tom !!!!!! and harry would just not bother if even a settled default destroyed their credit rating...

I am actually glad I did pay them back purely from the perspective that at least I can look myself in the eye rather than try to get out of paying them.

But surely this should show me in a better light than someone who doesnt pay a penny and they just drop off after 6 years?

waveydavy

And for the sake of £142 should I settle the default I partially settled? Will this help me get credit?

I took a settlement for that default as the charges levied were excessive, so in reality I paid back what I owed, plus some on top if that makes sense...

beargirl

I have a similar problem, again due to one default on my credit report. I was unable to get a loan from Natwest although they said from looking at my details I would be able to afford the payments etc.
I ended up going to my local credit union who base the loan on the affordability rather than your credit report and the interest was only a couple more percent than the banks. Additionally, there are no extra fees if you want to pay it off early, increase payments etc which is quite useful!