Will they, wont they?

welshmr

Hi All,

after a bit of advice, Ive applied for a loan with tescos on wednesday evening for 12k over 60 months, ive been approved in principal, had the option to hold off paying for an extra 2 months and dont need to send any additional documents in.

Ive just had 2 loan requests declined 1 from Sainsbury’s and 1 from alliance and Lester, not really sure why as i checked my credit raiting on experian and its 999.

do you think im also going to be declined for tescos after approval in principal?

if i do the next step is to apply with a joint application through our bank first direct, out joint income is 50k, mine being 24k.

if you need any more info just ask :-)

any advice MUCH appreciated, i would really like this loan.

Tixy

If you've already been declined twice (for similar amounts) then it seems likely you could be declined again.

Did either Sainsburys or A&L tell you why you had been declined? did you ask? they will sometimes give an indication.

Do you already have a fair bit of existing debt or available credit? you could have been turned down due to affordability (them thinking you cannot afford to repay the loan on top of any other credit limits you already have).

Do you already have joint financial products with your OH? What is their credit rating like (not the score - that means very little, but their actual report)

welshmr

thanks for your reply tixy,

We have a good creidt rating as far as im aware, never missed a payment, i have one credit card with £800 and an overdraft over £1000, from student days!

however part of this loan will clear these, i currently pay £300 onto my credit card a month, and use it for petrol etc, my overdraft gets cleared everyone month but i work my way back into it... however tthe loan will stop this.

any advice on where to go from here then?

Tixy

I guess just wait and see what tescos say. Hopefully they'll accept. If they do decline you ask if they can tell you why (or indicate why).

If you are turned down again then don't keep applying as this in itself has a negative impact on your credit rating as it makes you look desperate for credit (its usually recommended to have no more than 3 applications in 6months).

£12k is quite high for an unsecured loan, although whether this is a factor would depend on your level of income.

It can sometimes be easier to get a loan from your own bank as they already have knowledge of how you use your current account/overdraft. So that could be another option, though I would wait a few of months before applying again if you can.

dizzyblonde82

My husband recently got accepted in principle for a loan with Tesco, 3 weeks later and he has now called to cancel as everytime we send them the paper work they have asked for they write again for something else! I hope you get accepted but don't expect a quick response.

CLAPTON

you haven't given a lot of information here but

12k is a huge loan when you are currently unable to clear a CC of 800 and an OD of 1,000
how are you going to pay this loan back?

welshmr

Thanks for all replies, would be more than happy to give some information.

i am paying off the CC and OD, however my car is coming to the end of its life... sad may it be and my colleague is selling his car. its been very well looked after and im also getting an excellent deal.

i have done my maths, and i have a disposable income of 500 each month, yes i could pay off my od and CC quicker however i need a car and he needs a sell now. with the 12k, i will cover the OD and CC and will bring it all to one monthly repayment of 240 - 260 depending on APR, this was my plan anyone.

will have to look at joint application if they refuse, but its a little annoying and worrying as i would had had 3 fails on my name...

oh well!

thanks for all replies though !

Beast

Surely if you have an overdraft, you actually have zero disposable income?

welshmr

Thats once ive got the Loan, i clear the £1000 overdraft everymonth + £500 however money going out for CC (250), joint account etc brings it back down... it is 2 /300 better of each month but ive had it there since i was a student and never seem to get out of it...

im earning £300 more a month with my new job (bring home £1600 so i would clear it all pretty quick but need the cash now.. the whole point of a loan dont you think?

BLT_2

Beast wrote: »

Surely if you have an overdraft, you actually have zero disposable income?

I suspect the OP means they have a disposable income if the loan is granted enabling them to pay off the OD and CC.

That said I would hesitate before mortgaging my future for the next 5 years simply for a car. If something happens to the car they end up in the same situation they are now, but with a disposal income of 250 pounds, with little option to get funding for a replacement car.

Far better to cut the cloth, take a far smaller loan to pay off the OD and CC and buy a cheaper car

Tiddlywinks

welshmr wrote: »

will have to look at joint application if they refuse, but its a little annoying and worrying as i would had had 3 fails on my name...

I wouldn't think a joint application would be a good idea as the three applications so far will be taken into account by any lender you approach.

Sorry to say but getting a cheaper car may be the only option..... is your car really beyond help?