Personal Loan rejected - Advice needed

Strider007

Hey All,

I just recently applied for a failed at aquirring a lone from Sainsbury's. Not sure why I was rejected. Was only a small loan for £3000 for a car. Now my record is good I believe though through never missing payments and always paying DD's. Never had a credit card and shouldn't have anything bad on my record though its never been used. Earn a salary of around £23k as well and have no other commitments apart from rent and mobile phone contract. I'm 26 with a full time permenant job.

Now I wanted some advice to know if it it'd be worth applying somewhere else? Tempted to give the Post office a go but for a lower amount of £2500. Would I likely be rejected again as sainsburys had, would the fact that sainsburys rejected have a consequence on another application? I think Sainsburys may have rejected me due to not giving information of addresses of where I have lived for the last 3 years but thats to me having lived in 3 addresses over the last 3 years and they only ask for the 2 previous addresses.

Thanks for any advice in adavance.

Tixy

Have you looked at a copy of your credit reports? Are you on the electoral roll?

Is your mobile phone contract the only credit agreement you have ever had? If so they may easily have declined you due to a lack of credit history. http://www.moneysavingexpert.com/loans/credit-rating-credit-score#vote

You either need to build up a history (usually using a subprime card and paying in full each month - likely to take 6-12months to be of any use to you), or you could try applying for a loan at your own bank (assuming you have run your current account well).

AMILLIONDOLLARS

Are you a public sector worker?? Don't forget alot of this sector is up for redundancies in the next couple of months:( Can't see many banks lending money with this prospect looming!!!

AMD

Strider007

I with Barclays and have been for 12 years but the rate their offering just seems ridiculous for anything less than £5000. Have actually just aquired a credit card from them in hope I would have had a high enough limit to purchase the car with but didn't so the hope was to just get a Personal loan.

Building a credit history over the next 6-8 months seems unrealistic to me as I need a car asap for work.

Haven't looked at my Credit history yet, will sign up to equinox and 30 day free thing and check. Currently not on the electoral role. Should I sign up before attempting with the post office?

What other options have a I got?

iamana1ias

You have no hope if you're not even on the electoral role.

Strider007

Ah.......Would I likely be succesful once I'm on the electoral role then?

Tixy

Strider007 wrote: »

I with Barclays and have been for 12 years but the rate their offering just seems ridiculous for anything less than £5000. Have actually just aquired a credit card from them in hope I would have had a high enough limit to purchase the car with but didn't so the hope was to just get a Personal loan.

Building a credit history over the next 6-8 months seems unrealistic to me as I need a car asap for work.

Haven't looked at my Credit history yet, will sign up to equinox and 30 day free thing and check. Currently not on the electoral role. Should I sign up before attempting with the post office?

What other options have a I got?

First get on the electoral roll
Then get your credit reports (experian or equifax).
Then it might be worth applying somewhere else.
Have you applied for any other credit products recently (in addition to the card and the sainburys loan) - lots of applications in a short space of time is not great for your credit rating, as it looks like you are desperate for credit.
Its advised to make no more than 3 applications in a 6month period.

pinkladyof66

AMILLIONDOLLARS wrote: »

Are you a public sector worker?? Don't forget alot of this sector is up for redundancies in the next couple of months:( Can't see many banks lending money with this prospect looming!!!

AMD

And .................. this information is based on what I am a public sector worker and been one for 28 years, yes jobs are being and have been cut but only through natural wastage, no lending authority will use this as its criteria !!!!! on the basis you may be out of a job, any business can go bust at anytime does that mean no one will get any credit then ???

Sally-B_2

I have also just applied for a loan and been Declined.
I have a Mortgage and a contract phone, have never had any other loan or Credit Card, have checked my Credit Score which is just below excellent and appear to have quite a good credit report.

I tried with Tesco Finance for a loan of £3200 but was rejected but they didnt tell me why so I applied for another with Post Office a couple of days later, and that was also declined.

I work 50-60 hours per week and have quite a good income, never missed any mortgage or other payments so i ordered my credit report and the only thing on there is a missed payment for January due to me swapping bank accounts and there was no DD in place (even though i was never advised by my phone company id missed a payment!!!)

I have said the loan is for Home Improvements. Does it matter if its for something else if i was to be accepted?

Has anyone applied for finance through Hitachi Capital or know what their lending criteria is like? I really dont want to get refused anymore as it will affect my score but i dont understand why they are rejecting me because of one missed payment!!

Strider007

Tixy wrote: »

First get on the electoral roll
Then get your credit reports (experian or equifax).
Then it might be worth applying somewhere else.
Have you applied for any other credit products recently (in addition to the card and the sainburys loan) - lots of applications in a short space of time is not great for your credit rating, as it looks like you are desperate for credit.
Its advised to make no more than 3 applications in a 6month period.

Well I applied for a Credit card last week with Barclays and was succesful and then failed today with Sainsbury's. I'll get myself on the electoral and try again. If I fail I guess I'll have to find some other means for aquirring the cash. Just seems ridiculous as I can easily afford the repayments and don't have anything negative in my credit history.

iolanthe07

pinkladyof66 wrote: »

And .................. this information is based on what I am a public sector worker and been one for 28 years, yes jobs are being and have been cut but only through natural wastage, no lending authority will use this as its criteria !!!!! on the basis you may be out of a job, any business can go bust at anytime does that mean no one will get any credit then ???

I think amilliondollars was being ironic.