Declined for a loan, can anyone explain?

treatmefairly

Wow, YOU got told eh Berto! Not that you're asking for my opinion but here it is anyway lol. I don't think 1 cc & 1 loan is excessive borrowing. You also describe how you handled your previous credit & seem's fine to me. In my eyes debt spirals when it's just a case of want, want, want - I don't think you fit that bill! Good luck on getting your classic car.

Berto

You've summarised that very well for me, thanks treatmefairly.

YorkshireBoy

Berto wrote: »

I wanted to treat myself to a very special car that would not drop in value over time due to being a classic

Well why didn't you say that!?

If it's such a dead cert investment then re-mortgaging the house will be the best way of financing it. Then you'd have two assets that aren't going to fall in value...all on one simple monthly payment.

sulkisu

OP, FWIW I don't think that whether you 'want' or 'need' a new car matters. And although some of the later responses to your post did amount to a bit of a wrist slapping, the initial replies were useful (the first 8 at least) and actually hit the nail on the head.

You originally posted to ask why your loan application had been refused. The overwhelming response was that, with your outstanding loan and credit card debt, the amount that you now wished to borrow on top of that, would mean that your total outstanding unsecured debt would be excessive in relation to your annual - I think it actually exceeds your annual salary. And even though you say that you have considered the implications of taking on additional debt, the fact remains that no responsible lender would approve that loan application at this time.
Treatmefairly is right to say that one loan and one credit card is not excessive, but it is the total amount that you would owe, compared to your salary that is important.

It's not a case of people 'trying to ward you off from making a bad decision'. They are simply answering the question that you originally asked. There is nothing to stop you from applying elsewhere, but reputable responsible lenders will probably turn you down.

Berto

Thanks sulkisu, that make sense to me. My total debit including loan and credit card would be £18500 so it's under my annual earnings (it's actually just under half of my previous 2 yrs earnings and should be about 60% of this years earning) but i do see what you are saying and taking into account the current climate I can see why I will find it difficult especially when lenders may think i wont pay the outstanding loan off.

Berto

YorkshireBoy wrote: »

Well why didn't you say that!?

If it's such a dead cert investment then re-mortgaging the house will be the best way of financing it. Then you'd have two assets that aren't going to fall in value...all on one simple monthly payment.

Didn't want to do this as it's going to be my car, i wanted the responsability to be mine, not shared with my wife.

Apples2

They should never have got rid of the sarcasm smily

Berto

Apples2 wrote: »

They should never have got rid of the sarcasm smily

Sorry if I had a go, I just got the impression people were "out to get me" without knowing the full situation. :beer:

Apples2

Some people give advice warts 'n' all, others surround it with cuddles.

Both give the same advice, but some come across a bit more bluntly.

reall

today as a newbie,
I can understand how you feel as you have explained it so effectively.Driving a classic car or even owning one is part of your dreams.I only wonder what your marriage partner feels about this, can they consider it on their credit profile as i both of you will live with this decision.could you save half of the money and make a deal with the manufacturer/car person for a better deals .can you rent out the perfect car before you purchase one to see if it is really of value to your life.
The credit people may have felt that you are already over committed if you work out that a loan of 7000 is about 10,000 in real terms with interest added.
As you are married maybe they look at both of your incoming and outgoings and whether both of you have committments that if one of you was unable to work will be unable to afford your current liabilities or that you already hold sufficient assets to afford the car eg.savings.
date of birth needs to be corrected as soon as possible and perhaps add a notice of correction to your credit file. do not apply for a lot of credit at one time because this can reflect that you are unable to manage.