Loan refusal - please read

Neil_Wootton

Thanks for your positivity Rupert. My bank were wholely unhelpful to the point of being rude though!

fozmcfc

As Rupert said, try your own bank first, if your own bank who should know your credit history the best, don't lend, then it is unlikely any other lender will. EDIT.....see you have tried your bank, then I doubt very much you will get it from anywhere.

Tesco and Sainsbury, I believe only lend to those who have a very good/excellent credit history, including history of paying back previous credit cards/loans.

A lot of people say that nowadays, even those with spotless credit histories will struggle to get more than 50% of their annual income in credit. Obviously £10,000 on a £19,000 salary is just over that borderline.

The final thing to think about is that a £10,000 car won't be worth anywhere near that much even in a few years time, but the loan payments will be the same.

Unless it is a 2 years loan, at some time the car is going to be worth less than the loan outstanding. Will you be saying 4 years down the line, sod it this piece of junk is worth £2000 and I still owe £5,000 + on that loan.

fozmcfc

Neil_Wootton wrote: »

2. You have no idea what sort of car it is, therefore for what purpose the loan would actually have been for.

Are you saying that the car will go up in value after time then.

CHR15

Not sure why you are asking this question, you have already explained why you are getting turned down in this paragraph

Neil_Wootton wrote: »

At the time of the application experian showed me with a top credit score (although i wasn't registered to vote at the time) and i had been in my job for around 19 months, with a basic gross pay of about 18600. My address history is fairly chequered though although i could prove every address over the past 8 years if needs be. I also didn't have any form of credit other than a direct debit to O2 for my phone. Oh and i had only lived at the address i was at and still am, for about 4 or 5 months.

You are attempting to borrow in excess of 50% of your salary, to pay back over how many years???

How much do you have in Savings for this car?? If the answer is (most likely) £0, then how are you going to manage the repayments (over all those years you will be repaying it)?

How about changes to your lifestyle? repaying £10k takes a long time, your £10k car will be dead and gone by the time you make the final repayment.

I agree with the others, from the info you have given, you cannot afford it.

Getting arrogant and flippant just makes you look silly, which is why people are quoting you.

Neil_Wootton wrote: »

I have been having a bit of a trawl through the various posts so as to try and get the answer i need and avoid a double post, but cant seem to find anyoen who matches my situation or has asked the identical question i need to.

applied for a loan of 10 grand with which to buy a car - was refused by Tesco and they wouldn't explain why, just gave be the generic letter explainign common issues.

At the time of the application experian showed me with a top credit score (although i wasn't registered to vote at the time) and i had been in my job for around 19 months, with a basic gross pay of about 18600. My address history is fairly chequered though although i could prove every address over the past 8 years if needs be. I also didn't have any form of credit other than a direct debit to O2 for my phone. Oh and i had only lived at the address i was at and still am, for about 4 or 5 months.

I then registered to vote, let the election pass and at the end of the next month applied again (first time with tesco and second with Sainsbury) and once again was rejected.

Now my brother around the same time inititally also applied for a loan of the same amount also from tesco. His address history was showing as 1 address from october 2002 to august 2009 (although for the last 4 years of that he was at uni so his normal address did actually change a bit) and then a differnet one from end of august to end of february 2010. I dont know what his credit score is, but apart from a phone he would also not have had anything, and his gross income at the time was near as makes no difference 19500. He was registered [although doesn't] to vote. He was accepted!


Now does anyone know of any process for appeal by which i could go to either company and provide them with the relevant proofs to get them to reverse their decisions. How long would people suggest it is wise to leave before i apply again. To start building up some manner of credit profile (because i cant even get a basic f***ing credit card) i have created a littlewoods shopping account. So is the only way i can build a credit profile to over pay for things to the tune of 25% or more??

Neil_Wootton

There is no touch of arrogance or flippancy in any of my replies. I certainly am never flippant when it comes to my own money. And where is there any arrogance. There is annoyance yes (rightly so) but no arrogance, so to that end you may want to brush up on your understanding about the definition of said word. I am constantly bemused at peoples utter ignorance of the words in front of them. I have asked a question, been very careful about how i have asked it, and was expecting some more reasonable replies, when for the large part it seems people are reading what i am typing and are creating an interpretation of it or are attaching certain assumption to part of what i have said without asking any relevant questions or linking said part to the rest of the text.

IN addition i can see the reasons why i may be getting turned down, but i'm not asking people to confirm my suspicions in this respect, i'm very obviously asking if anyone knows of any process with which one can negate or remedy these reasons.

What is meant by "how are you going to manage the repayments?", how do you afford to buy food and pay rent/nortgage and car insurance and pay for petrol every month and go to the cinema??????????????

The car would have been a lotus elise, i had sourced all the parts in order to do an engine transplant the type of which in other cars of the same sort i have never seen go below £13,000. Whilst i wasn't banking on making money on it, i would have felt relatively secure in knowing that had i lost any money it would have been minimal (assuming i were to sell the car of course which was not the plan).

I had not sconsidered the possibility of a company not lending more than 50% of income, but then i wouldn't be sure about this as a rule given the brother comparison, and also the credit score comparison.

Neil_Wootton

I'm really glad if this thread has given people the opportunity to laugh and relieve themselves of any previous depressive moment, but really from now on please dont reply at all or post anything if it isn't going to directly answer any of the original points i have asked about - ask me more questions if you need but really, please stop wasting my time particularly if your only interest is to assert that i am too poor to borrow money or to assuke that i am trying to impress someone

steve1980

The "killer" part in the deal is the loan/salary ratio and lack of credit history.

As for the £10k car. Don't bother. Waste of money. I found a Renault Megane Scenic 1.6 which I purchased for £2200 last year.

You don't need some boy racer 10k car just to go and smash it up.

Neil_Wootton

Right you are steve- to that end - salary/loan ratio asside, what would you suggest. For how long would you reckon i might need to remain registered at the same address with some sort of credit repayment history showing, before potentially considering looking at this option again?

It wasn't that i had an amount in mind and decided that was what i was going to spend, i had in mind the sort of car i wanted and did research into the asosciated costs. I have a car for day to day commuting and such like, it was more for the hobby aspect and that i like driving and various other aspects of cars!

Apples2

Still in dreamland??

It isn't going to happen, you need an unblemished, stable history. This is not you because:

Neil_Wootton wrote: »

(because i cant even get a basic f***ing credit card)

Sadly you are going to have to change your Signature, you aren't getting a £10k Elise :rotfl:

wuckfit

oh look, another "please read" in the thread title.
attention seeking n00b alert