Why Can't I get a loan from Sainsbury and what to do next? PLEASE HELP.

Timmy_Hooson

Hi My first post.

Back story: I was looking for a car and I have decided on one. I have now secured for 2 weeks with a deposit (for work commitment).

So I went for £7500 loan over 3 years from Sainsbury - Using monysupermarket.com to compare - also the double point on nector swang it there way.

About me:
I don't have to pay any rent/mortgage due to family having a free bungalow(lived there nearly a year now). I'm saving currently for a deposit though.

I have some savings(deposit) and 2 months ago got a new job(This is probably why I didn't the loan)

I earn £30,000 a year.

Were can I get a loan for that amount of money now? (or even less I can dip further into my savings) I find this whole thing ridiculous.

Will applying again ruin my chances further if I get another decline?

I have never late payed on credit cards, also 2 years ago I did have a £3000 loan(for another car) from Natwest (which I bank at). And payed that off with no probs what so ever.

But I thought Natwest interest is way higher than Sainsburys. Can I appy to another place or should I just go to natwest? Online or talk to someone?

I need a min of 3000 in the next but would prefer about 7000 loan for around 3 years/2 years if needs be.

Can someone help me with some advise? I don't want to destroy all my savings on a car.

immoral_angeluk

HOw much other debt do you have? Have you actually looked at your credit report? Ever been a victim of ID fraud?

Timmy_Hooson

I have a credit card - limit of £1500. And i never go above 150 a month and pay off in full every month.

I have no debt. And no fraud.

I'm only 25 - Should that make a difference? -it better not.

immoral_angeluk

Timmy_Hooson wrote: »

I have a credit card - limit of £1500. And i never go above 150 a month and pay off in full every month.

I have no debt. And no fraud.

I'm only 25 - Should that make a difference? -it better not.

Nope, I'm 25 and recently got a loan..

Do you bank with sainsburys? if so have you ever been in an overdraft or missed any direct debits to anyone?

Timmy_Hooson

When I was a student - I had the standard student (0%) overdraft that was 4/5 years ago. Now full in the black and never in the red, since the student days.

No I don't bank - only with Natwest.

Never missed a direct debit either.

I am finding this situation very frustrating.

immoral_angeluk

Can imagine, you need to look at your credit reports really. You can get them online from Experian, Equifax and call credit.

Do you have any joint accounts or finances with anyone else who may have a poor credit rating?

Timmy_Hooson

I do have a joint account - but they don't have any bad credit.

Even if I have this information what can I do with it?

Applying for another loan - would that make my situation worse?

Should I got with Natwest as I bank with them?

Would talking to someone on the phone e.g. Natwest make the decision go more in my favour?

immoral_angeluk

Timmy_Hooson wrote: »

I do have a joint account - but they don't have any bad credit.

Even if I have this information what can I do with it?

Applying for another loan - would that make my situation worse?

Should I got with Natwest as I bank with them?

Would talking to someone on the phone e.g. Natwest make the decision go more in my favour?

You may not think they have bad credit, but you don't know until you check the credit reports and even the smallest error can lead to a decline. If you have any joint accounts you will have financial association with that person on your credit reports, and so they will assess their credit report as well as your own when you apply, even if it's a sole application as you are financially linked.
If there are errors on the reports you can then go about correcting them.
Trying for a loan with your current bank has more chance of success BUT check your credit reports first and correct any errors, and if possible the credit reports of the joint account holder to see what theirs is like.
Every application you make is recorded as a search. Have too many searches in a 6 month period and you will appear high risk and desperate for credit so they will decline you. Generally rule is having no more than 2-3 searches in any 6 month period if possible.

YorkshireBoy

Timmy_Hooson wrote: »

Using monysupermarket.com to compare

But I thought Natwest interest is way higher than Sainsburys.

Don't, especially at your age, pay too much attention to the advertised 'typical' rates of interest. All applications are scored individually and you'd need a top notch credit rating to score high enough for the best rates.

It's possible, for a loan of 25% of your salary, that the bank receiving your salary will be best positioned to offer you a loan of that size. After all, no one knows more about your financial circumstances than they do.

Timmy_Hooson

The plot thickens!!

I have just used creditexpert.co.uk and they have all my details correct. Including my failed attempt which is very impressive.

But I paid for my 'score' Which is 999 and means that I am excellent. I don't fell very excellent I feel really annoyed at Sainsbury's.

p00hsticks

Timmy_Hooson wrote: »

The plot thickens!!

I have just used creditexpert.co.uk and they have all my details correct. Including my failed attempt which is very impressive.

But I paid for my 'score' Which is 999 and means that I am excellent. I don't fell very excellent I feel really annoyed at Sainsbury's.

There are many previous posts on here that will tell you not to read too much into these scores - individual lenders all have their own criteria to decide who they want to lend to, which they aren't going to publicise. It may simply be that you simply don't fit the profile of customer that Sainsbury's are looking for (for example, whilst you appear to consider the fact that you pay off your credit card in full a point in your favour, certain credit card companies would look on it as an indication that they're not going to make much money out of having you as a customer....)