Loan refusal - please read

Rupert_Bear

iamana1ias wrote: »

It could be that Tesco don't lend to people called Neil.

No that is complete rubbish:rotfl:. My second name is Neal and they gave me a credit card.

Paulgonnabedebtfree

To Neil:
Speaking generally, lenders these days do usually like to see that a previous loan or card has been well managed before supplying a loan. Some lenders like to see three consecutive years history (i.e. electoral register) at the same address too.
Although it won't help you out now, it may be a good idea to try for one of those rip-off, very high interest cards such as Vanquis and just repay in full each month to avoid charges. At least this would give you a credit history for them to refer to in say a years time. Another thing is if you have any savings, maybe use them as a car deposit to reduce the size/length of the loan required. Of course the only other way to borrow less really is to go for a much cheaper car. If you can delay getting a car for a while, maybe try to save the equivalent (or more) of the loan repayment each month whilst managing a high interest (paid each month) card at the same time. Hopefully it would take no more than 6 months to a year for a lender to acknowledge that your track record is good enough to supply a loan though even then, they may well offer a higher than standard rate. Also, you would have your 6 months savings to offer as a deposit (or if not needed could always be used for helping to insure the car).
Have you tried buying the car from a dealer and arranging the car loanthrough them? No idea if it would help but it might be a bit easier to get a loan if it's attached to the vehicle - i.e. vehicle repossession used as security against the loan. This would tend to cost more though as the dealer gets a cut.

Wutang_2

Rupert_Bear wrote: »

No that is complete rubbish:rotfl:. My second name is Neal and they gave me a credit card.

Neal is ok - Neil isnt. Its a well established loan-fact.

easilydistracted

I borrowed that amount a few months ago to buy a car. The idea terrified me, I never thought I'd buy a brand new car but my old one qualified for the scrappage scheme and the new one is reliable and incredibly economic to run. I still spent nearly a whole year debating the purchase and the interest rate from my bank wasn't great. This was because the loan came out on the borderline of affordability as I borrowed the money over just over two years as I hate being in debt. I live a really frugal lifestyle, live with my partner so can share the costs, spend little on socialising, but I'm doing a little babysitting on the side for when I want the occassional treat. My income is well over £25000. I'm pointing this out not to be smug, but because I'm shocked you don't see borrowing such a significant amount of money as a big deal. I can't see anyone lending you that on your income but suggest your bank would be a good start to see how affordable it is.

real1314

Neil_Wootton wrote: »

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

1. There's no one you can appeal to. Companies are not compelled to lend you money, or indeed to lend anyone money. You need to accept this.

2. If you have 1 car and want to buy another for £10k on a £18.6k salary, and will then need insurance (with 0 yrs no claims - 2nd car), the associated costs are going to add up. Your £18.6k salary is probably £15k after tax / NI. You want to lend 66% of that as an unsecured loan with a poor address history. You need to accept this too.

3. Arguing with people on here will not help you get a loan. You need to accept this too.

iamana1ias

real1314 wrote: »

2. If you have 1 car and want to buy another for £10k on a £18.6k salary, and will then need insurance (with 0 yrs no claims - 2nd car), the associated costs are going to add up.

Which will rocket with the proposed engine change. Easily 4 figures.

immoral_angeluk

Getting a 10k loan, with 'chequered' address history, no credit history, only just going on the electoral role and having an income of 18.6k is a no hoper. Sorry OP, it's not going to happen.

steve1980

Neil_Wootton wrote: »

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!

You need a credit history. It's as simple as, Get a credit card, Barclaycard are offering a good deal at the moment, buy something and then pay it off...unless you can get the 0% then spread the payments, gives you a credit history.

Tesco want to see something happening on your record so that they can see if you are going to be a good customer or not.

In an ideal world you should reapply again in 6 months.

judy

To understand why you are getting refused the loan you want, read Martin's article: Credit Rating: How it works and how to improve it.

Apples2

judy wrote: »

To understand why you are getting refused the loan you want, read Martin's article: Credit Rating: How it works and how to improve it.

Holy moly, Joined Oct 2003 and taken all this time to make your first post...... and it was THAT??