Personal Loan Advice - Sainsburys/Experian etc

vegasphil

Hi,

Forum newbie here so hello everyone. I have read the forums for a long time but have only just joined.

I have a company car and have got the settlement figure through so I have the option to buy (It's a good deal). I have looked into loans using info on here and decided to apply to Sainsburys for a 5k loan over three years.

Long and short of it was that the loan was declined. A few days later I got a letter through from Sainburys telling me to contact a credit agency etc. At the same time I had already joined experian and had a look at my report and also got a copy through the post.

As far as I am concerned my credit history is fine. I am a homeowner, have a mortgage, 2 credit cards, landline phone, heaps of direct debits that all come out on time each month. I have never missed a direct debit or been fined. I bank solely with Halifax so they charge £1 a day for overdrafts but it's only a couple of days every other month. Hardly risky IMO.

Going back to the experian report. The report doesn't contain that much information, which surprised me. It contains the details of a couple of credit cards. One old closed Halifax one and a HSBC one that I don't use, just have it handy. It contains no information about any of my current accounts or the credit card I have had for a year and use each month. It has my address history (I actually put my latest address in wrongly on the loan app, but only by a couple of months). It doesn't show much else.

What do I do now? Do I apply for another loan and see how I get on? Do I write to Sainsburys and ask for more details as to why I was rejected? If I get declined for a loan again have I had my chips for borrowing money within the next 12 months?

~Beanie~

There are three credit reference agencies, you really need to check all three. Your credit card etc probably report one one of the others.

PNPSUKNET

if your going into your overdraft, things are not that great.

julie86smith

i understand that you are in a very tough situation and my suggestion is to reconsider all the assets that you have and then come to a conclusion. i have seen people coming to a conclusion without looking at all the possible solutions. I know this may sound stupid to many here but in tough times brain usually stops working.

NeverEnough

Its likely that you just don't meet their criteria for lending, for whatever reason, but its a good idea to check all three credit reference agencies just to make sure there are no mistakes. Have you not thought of trying your own bank for a loan? If you have a long and good history with them, they will probably be the best chance of success in getting a loan. Oh, and FWIW, using overdrafts is not the vast problem that some people here seem to think - provided they are paid off in full or used on a short term / fluctuating basis only, with a view to reducing them. Just beware of making lots of applications in a short period, as this does seem to blacklist you with lenders. There is no real sense at all to the skullduggery behind credit decisions: some people have excellent incomes and great repayment track records, yet are declined for loans or credit cards, when people who have low incomes and little chance of repaying the debt without great difficulty sometimes succeed - try your own bank at this stage, I would advise.

jonesMUFCforever

I would ask the bank that your salary goes into for the loan - they will know how you really conduct your account.

vegasphil

I have been to my bank, who offered higher than the advertised rate when I went to ask. I will go back after xmas and see what they have to say then. They underwrite the Sainsburys loans anyway.

The other frustrating thing is that lenders are offering larger amounts of cash at the decent rates. This hasn't tempted me and I still only want 4-5k.

I forgot to mention that as I am coming off the company car scheme I will get a car allowance added to my salary. Should I add this when making my application? As I didn't the first time. Oops!

jonesMUFCforever

Best rates are for loans £5k or higher (7.5k in some circumstances)

sulkisu

You mention an overdraft. How often are you overdrawn and by how much - e.g. do you go into it every month?

MFWannabe

How much debt to you already have? How much avaialable credit do you already have? What's the percentage of this compared to your salary? For example if you owe over half what you earn then that may be why you are being refused. If lenders already see that you have quite a lot of credit already avaialble and then you are asking to borrow more.

vegasphil

Overdraft is only for a few pounds. Once every three months perhaps. The agreed limit is big, but it's been years since I've been more than £50 overdrawn.

In regards of debt? I have little. £300 remaing on a credit card because of a large purchase in Dec. Will be gone by the end of Jan. Other than that I repay in full every month. I have a "spare" credit card that I haven't used in years. I have a mortgage. 75% LTV.

I need to work out which I need to try. Another lender for a loan or try car finance. I would prefer the loan of course as it means I can change car easily.