Loan refusal - please read

gilly1964

Hi Neil

The usual basis for banks deciding on loan or other types of credit is

Address history - ideally at same one for at least previous 3 years
Being on the electoral roll
Employment history - 4-5 months is usally not long enough, again I believe 3 years is preferable
Previous credit history - credit card payments, HP etc
Application history - approvals/rejections
Income to requested amount ratio
Purpose of the loan
Term of the loan in relation to purpose


It is usually recommended that you only apply every 6 months, as each rejection on your credit file reduces your rating.

I would suggest you register with Experian, Equifax and Call Credit as it is not always clear which of the CRAs each financial organisation uses. Some use only one to check applicants but they tend to update them all with approval status.

I would recommend that you apply for a credit card with a low available credit that you use to build up your credit history - spend and then pay off in full for at least the next 6 months.

Ideally you also need to save a chunk of the car fund yourself and borrow for less than 3 years as it is presumed that you will not hold the vehicle for much longer than that.

I hope this helps

somethingcorporate

ClaireC81 wrote: »

Credit card history - Maybe get one or two at whatever rate you can, spend £100-£200 on each, then pay them back at more than the minimum payment for 6 to 12 months. Yes it'll be costly in interest, but perhaps think of it as the price for improving your credit record. It's unfair, but it's the way it works.

Or you can clear the amount every month and not pay a penny interest, has the same affect.

OP, I agree with most of the posts to have taken objection to. You have no credit history, you have no stability in address, you haven't had a job that long, you don't earn a lot (compared to the amount you want to borrow), you are claiming you are not doing it to be flash (but buying "flash" things with it). You maybe trying (and failing) to pull the wool over the forums eyes that we know nothing about what you are buying and your situation and think you are the victim but to be honest, the bank has made the right decision - you are a big risk at the moment.

Wind your neck in and lower your ambitions.

Get on the electoral register, get yourself a credit card and start paying it back regularly to sort the address and lack of credit history and start saving (what would be the monthly payment) now. In 6-12 months time you'll have a hefty deposit and the discipline of paying it back month in month out. The loan will be lower and your stability and history higher so you will stand a much better chance of being accepted.