Advice, why do I keep getting rejected.

chrissy_stevo

Hi there

OK, I am wanting a new car and would rather do it using a loan than on finance from a dealer.

I am a 26 year old who is living with parents and have an income of 20k per year.

I am wanting a 10k loan over 5 years.

I do have one default on my account from 5 and a half years ago.

I have a credit card which I use monthly and pay the full amount every month. I also pay me phone bill every month.

I have no other credit apart from a £500 overdraft which generally I am close to the limit of.

I have no idea how all this works and understand that the default will affect me, as possibly will the overdraft?

I always wait 3 months between applications, can anyone give me any advice on what I can do to improve my chances. Any helps appreciated.

SnowTiger

chrissy_stevo wrote: »

OK, I am wanting a new car and would rather do it using a loan than on finance from a dealer.

I am a 26 year old who is living with parents and have an income of 20k per year.

I am wanting a 10k loan over 5 years.

I do have one default on my account from 5 and a half years ago.

I have a credit card which I use monthly and pay the full amount every month. I also pay me phone bill every month.

I have no other credit apart from a £500 overdraft which generally I am close to the limit of.

I have no idea how all this works and understand that the default will affect me, as possibly will the overdraft?

I always wait 3 months between applications, can anyone give me any advice on what I can do to improve my chances. Any helps appreciated.

Oh Chrissy!

You earn £20,000 a year; live at home with your parents, so presumably don't have much in the way of outgoings; and permanently live with a £500 overdraft.

Where does all your money go?

I'm a nice guy, but I wouldn't even lend you a tenner let alone £10,000.

If I were you I'd cut back on spending, save up and buy a car outright next year.

chrissy_stevo

I am saving for a house deposit so most goes there, I intend to clear my overdraft this month. Also I have a life which also costs money

And without being nasty I wasnt really to intrested in what you would lend me, I was asking what I need to do to make myself more appealing to a lender as I am clueless

CashRequired

I guess lenders are really picky these days, understandably.

Have you thought about buying a cheaper car, you can get a great car for 5k. All my cars have been under 2k and have been reliable. Just a thought.

chrissy_stevo

I have a car which is fine however its 10 year old and I have quite a journey to work, it has had a couple of faults lately and thats something I cant deal with. I would rather pay more for a better (newer) car now that I can keep for another 5-10 years that will be reliable for commuting.

Apples2

chrissy_stevo wrote: »

I am saving for a house deposit so most goes there,

Are you seriously taking money out of your bank account (pushing you into your overdraft), and putting the money in a Savings Account??

Gordon_Hose

You have a default, that's your problem. Wait until it drops off your file and try again.

What is the credit limit on your CC?

drbesty

You're wanting a loan for half your annual salary and you're always in your overdraft, that'd set alarm bells ringing I'd think. Having nearly £10k in savings but also using your overdraft makes no sense at all

PNPSUKNET

Have to agree with the above, if you have an overdraft it makes little point in having savings. Savings dont report to cra's , however overdrafts do and signals living beyond means