Borrowing Problems!!!

Dalvid

Hi every time i apply for a loan iam knocked back and i dont understand why?? i earn £24000 a year in a secure job, i have no debts or have ever had any. Iam 25 years old and need the money for a new car ASAP ive been asking to borrow £1000 over 12 months which is no problem to pay back. why do i keep getting knocked back and what can i do about it? help me please :)Thanks Dale

fozmcfc

Could well be because you have no credit history. I.E. no previous loans/credit cards.

Other than that are you registered on the electoral role?

epsilondraconis

A few things to do:

1. Stop applying for any more loans for now

2. Ensure you are on the electoral role

3. Check your credit report to ensure nothing untoward is present

4. Consider approaching your bank as they are most likely to lend to you because you already have a financial relationship with them.

5. If all else false, start saving...

Good luck...

Dalvid

cheers how do i check my credit report?

fozmcfc

Also from me take a look at this article from the mainsite http://www.moneysavingexpert.com/loans/credit-rating-credit-score.

The section regarding "Improve your credit score..." says this which could apply to you.

"Credit scoring tries to predict your behaviour. If you've no credit history it's more difficult for lenders to do this, so you're more likely to be rejected. Therefore, both for those with poor and no credit histories, you need to build a good one.

One of the best ways to do this is by getting the right sort of credit card. By getting any kind of credit, and operating it perfectly (i.e never missing payments, always staying within limit), you can either build up a credit history from scratch, or remedy a tarnished one.
For a full, updated list of the cards to try for, and the golden rules of how to use them, read 'Bad Credit' Credit Cards guide"

Flint8

People
Beware - I spent a long time with one of these high street banks that offer loans at 8.5% APR yet with a clean record and nothing risky they offer you the loan when you actually apply at 15.4% - so who are the people that are receiving loans at almost 0% that this can average out at around 8%.
The asking about the credit score, this same institution that calls itself a bank, state they do not use any of the credit scoring companies and that any info out there do not influence their decision. Beware, beware. The Banks keep on hurting the people that need to borrow money, even if it is for a good cause such as study loans.

Beast

Flint8 wrote: »

People
Beware - I spent a long time with one of these high street banks that offer loans at 8.5% APR yet with a clean record and nothing risky they offer you the loan when you actually apply at 15.4% - so who are the people that are receiving loans at almost 0% that this can average out at around 8%.
The asking about the credit score, this same institution that calls itself a bank, state they do not use any of the credit scoring companies and that any info out there do not influence their decision. Beware, beware. The Banks keep on hurting the people that need to borrow money, even if it is for a good cause such as study loans.

It's not the rate which is averaged out at 8% - it's the fact that a certain proportion of customers get that rate.

CHR15

Beast wrote: »

it's the fact that a certain proportion of customers get that rate.

Agreed, it would still be nice to see evidence of how many borrowers get that rate.

They might say "Typical apr", but my guess it is by far an exception, and nowhere near anything like 50% of applicants

Malky

Without stating the obvious but how can you be earning £24K per year with no debts and you can't scrape £1K together?

fozmcfc

It doesn't really matter how much spare money people may have they can always spend it. I know people who have £500 or £600 spare money a month, but still spend it by buying luxury items each month, gambling and several holidays a year.

Not saying the OP is such a person, but some people simply can't save they have to spend the money as soon as it hits the bank account.

Dalvid

Malky wrote: »

Without stating the obvious but how can you be earning £24K per year with no debts and you can't scrape £1K together?

I like a good time with the girlfriend like eating out and days out. i know it sounds daft and i should sacrifice luxury's but why when i can still do them and afford to pay a loan back over a long period of time rather than save.