Declined for a loan, can anyone explain?

wheeliebin_2

I think you may be right that people are making assumptions about your circumstances but you can hardly blame them, this is a forum where people give advice and they can only do it based on the info they have. Most of what is said above is generally true though may not apply to your specific situation

Kitten_Claws

Remind me not to ask for advice here. The op asked why they were refused for credit not for a full on critique of how they manage their finances.

opinions4u

Kitten_Claws wrote: »

Remind me not to ask for advice here. The op asked why they were refused for credit not for a full on critique of how they manage their finances.

Welcome to the board.

The reasons that the OP was refused credit will include the way in which outstanding balances have increased over a period of time which is directly as a result of they way an individual manages their finances. Spending more than they earn.

The OP can disregard the information given if they choose too. But I've seen far too many people over far too many years over-extend themselves. The scenario painted in the thread very closely reflects the experiences of people who have gone in to a financial abyss, ruining their lives.

On this occasion the OP is lucky to have been declined credit, as it creates an opportunity to reflect on why that could have happened.

Three years ago the loan would probably have been approved. If the money had been taken, it is highly likely that this thread would have been about how to cope with the payments on a range of commitments that they could no longer sustain.

Stick around, read other threads about desperate people paying out silly money to claims companies in a futile attempt to get loans written off. In the end, they turn up in a 3 week queue at the CAB, being referred to charitable helplines and, ultimately, thrust in to debt management plans, IVAs or bankruptcy.

Taking stock now makes so much more sense.

R0bert_Sterling

Kitten_Claws wrote: »

Remind me not to ask for advice here. The op asked why they were refused for credit not for a full on critique of how they manage their finances.

What kind of Numpty signs up to a Forum solely to ask "Remind me not to ask for advice here."??

Here's some advice for you numpty, Don't ask for advice here.

Wutang_2

Kitten_Claws wrote: »

Remind me not to ask for advice here. The op asked why they were refused for credit not for a full on critique of how they manage their finances.

Kitten Claws - don't ask for advice here.
cheers

Berto

opinions4u wrote: »

Welcome to the board.

The reasons that the OP was refused credit will include the way in which outstanding balances have increased over a period of time which is directly as a result of they way an individual manages their finances. Spending more than they earn.

The OP can disregard the information given if they choose too. But I've seen far too many people over far too many years over-extend themselves. The scenario painted in the thread very closely reflects the experiences of people who have gone in to a financial abyss, ruining their lives.

On this occasion the OP is lucky to have been declined credit, as it creates an opportunity to reflect on why that could have happened.

Three years ago the loan would probably have been approved. If the money had been taken, it is highly likely that this thread would have been about how to cope with the payments on a range of commitments that they could no longer sustain.

Stick around, read other threads about desperate people paying out silly money to claims companies in a futile attempt to get loans written off. In the end, they turn up in a 3 week queue at the CAB, being referred to charitable helplines and, ultimately, thrust in to debt management plans, IVAs or bankruptcy.

Taking stock now makes so much more sense.

I'm sorry but I think you have made an incorrect assumption of my personal financial situation. I am not the type of person to get more and more money, i've had 3 loans in my entire life, 2 of which have been paid off and 2 credit cards, one has been paid off and 1 was used for an emergency and i am hoping to get paid off soon. My overall debt is now lower than it has been for about 7yrs so how you can say i'm looking at "a financial abyss" is a mystery to me.

You are also saying I spend more than I earn and are implying i cannot manage my finances, i am useless with money and essentially an idiot who should not be let out alone with any kind or credit/debit card as i am likely to buy the first big shiny thing I see. And yet, according to my credit file, in the last 6 yrs I have missed 1 payment due to changing to a new bank and them not setting up my direct debit in time to pay for my loan for 1 month (i moved back to my original bank after this) and 1 payment due to my credit card protection plan automatically renewing despite the fact I asked for it to be cancelled and the card had not been used for 8months and i have applied for 1 loan (not counting my recent application) in this time.

Not once in this time have I ever got to the end of the month and had no money left, I always budget well and like to end the month with a clear overdraft but some how this mean I am bad with money, i cannot manage my finances and will end up so badly in debt I will need to go to the CAB, then charities and probably end up bankrupt.

If the loan had been approved 3 yrs ago as you stated, my current financial commitment would be that loan, a mortgage and nothing else hardly "a range of commitments that they could no longer sustain."

You keep saying I am borrowing more and more money, if that is so can you tell me the amounts of my previous borrowings as the information that my credit file and my bank records show must be incorrect?

I'm sorry opinion4u but you still do not know my past history or the type of person i am, you have made several assumption based on previous people you have advised. It's a shame you are so closed minded and cannot see that all people are different, please do not post anymore on this thread as I find you assumptions quite upsetting.

opinions4u

You keep saying I am borrowing more and more money, if that is so can you tell me the amounts of my previous borrowings as the information that my credit file and my bank records show must be incorrect?

I refer you to your first post:

"I recently applied to tesco's for a loan of £16500 to get a new car and settle an outstanding loan of £7000".

please do not post anymore on this thread as I find you assumptions quite upsetting.

As you wish, I'm out. I didn't call you an idiot. You have the choice to follow your own lifestyle. But I genuinely think you're going down a path that will eventually lead to you over-extending yourself.

Sorry to have upset you.

Apples2

Berto - you are making a strong assumption that NOTHING is going to change in your personal circumstances..well... for ever!

You are trying to obtain credit up to your Salary. Have a think about how long that would take to repay, I mean really think about it.
What happens if you have children, get Wed, get Divorced, get injured, get sacked, made redundant, need new car, need holiday etc etc etc.

You are forecasting a settled life FAR beyond what is acceptable.

In my mind, £10-15k is a threshold of debt, after which you are going to really struggle to recover from (if you are on average earnings).

Think about how many Months you will have to pay that back for. You are not going to benefit from it as the money will have been spent long ago, your classic car will be a distant memory, but you will continually pay each and every Month for YEARS and YEARS.

People really do have YOUR interests in mind when giving this advice. It isn't going to affect any of us in the slightest.

Berto

I appreciate the advice people have given me but at no point was I asking for advice on my finances.

I originally just wanted to know if there was anything I could do to help me to get a loan for £16500. Thats all I wanted to borrow (£9500 car and £7000 remaining balance on an existing loan)

I have fully thought out all aspects of my life and my future and that was why I decided for such a lenghty term, it would mean i could save a little each month and not worry about having to stretch myself, but also that if things went wrong I could still deal with it. I know that to some people on here that is not to your thinking but it is what I will be happy with. All i wanted to do was extend my finances paying similar amounts that I pay at the moment.

I feel that my finances are well in hand at the moment, i am paying back my debts, I am still able to life my life and I do not stress about money.

So once again thanks to the advice that people have given me, i can see that some of you may think I am not thinking things through and I could end up in trouble. I dont believe this is the case and my reasons for making the decision have been well thought out and discussed with my wife. She is happy to support me in what I want to do, but at the moment as I have said in previous posts, I am reconsidering what I should do.

Apples2

Berto wrote: »

I originally just wanted to know if there was anything I could do to help me to get a loan for £16500. .

To keep things on track, relevant to your question and without going into detail as you are asking..

The answer is NO. You will not get a loan for over £16k. There is nothing you can do to help that fact either.