Newbie Loan Query....

laudrup_2

Hi Everyone,

I am new to the forum and wondered whether you could help me with some advice regarding loans.

About 1 month ago I applied for a loan via Halifax Plc for £5000 over 5 year and my application was declined.

I was concerned because I calculated my incomings/outgoing and have between £700-800 per month disposable income and am debt free.

The only debts that I have had were student overdrafts, one totalling £1200 and one at £800, however these were both paid off over 6 years ago and I have been debt free since.

I applied for a copy of my equifax credit file via checkmyfile.co.uk. I was given a 3 star rating with a score of 741.

My account conduct was classed as being compeltely clean, i had no county court judgements or goneaway information, my details were matched against the electoral register and the only thing that seems to have prejudiced me is the fact that I have been debt free for so long.

It mentioned that because I only have two current account, one with a £200 overdraft, and no credit cards loans etc that I am not classed as being credit active.

I would ideally need to arrange a loan before january as the purpose of the loan is to buy a car and pay for a trip to the states in jan 07.

I just wondered if anyone had any advice about how I can deal with this situation or could recommend a lender that would be likely to offer a loan without being charged an exhorbitant APR.

Any advice appreciated

Cheers

Adam

dings

Hi Adam

Not an expert at all, but I think your suspicion that you've been declined due to a lack of a credit record is right. Remember a couple of years back a mate was trying to buy a house, and he had a mare... no credit cards, had only had student loans, which he'd paid off. Had to get letters from work confirming all his pay details etc before they'd lend to him.

Call them, have a good chat, or better, go into a branch and discuss it with them. Take bank statements, pay slips, your credit file, and see what happens.

Good luck.

Dings

laudrup_2

I've since accessed my credit rating with Creditcall (rating of 775 -apparently equal to a 4 star rating) and Experian (2 star rating because they couldn't find my details against the electoral register even though Creditcall & Equifax could).

They all tell the same story, my account conduct is perfectly clean, I have no judgements etc, but because I try to avoid getting myself into debt unecessarily, I'm struggling to get a loan.

I'm finding it quite frustrating because for the first time it would be helpful to take a loan, and i'm in a position to afford it.

I don't want to start applying to places wily-nily and then end up having too many searches which affect my rating in future and i'd like to avoid having to either pay an exhorbitant rate or deal with one of those dodgy companies that takes a fee for a loan that never materialises or uses premium rate numbers!

My problem is that i'd ideally need to get the loan for January 07!

Does anyone else have anymore advice about what i can do between now and then or even recommend any companies that would be worth approaching but who won't pull my pants down on rates etc!

Any advice greatly appreciated

Ad

laudrup_2

Sorry to bump this but I am keen for some advice on my situation,

I went back to the Halifax (whom I have banked with for 4years 5 months) armed with my credit reports, a breakdown of my incomings/outgoings etc.

I also noticed on my experian report that they hadn't been able to confirm my details against my current address so contacted the local authority who confirmed that they hadn't put my details on the electoral register yet, but would more than likely put me on the 2007 register starting in decemeber.

I sent my forms back months ago, so they said they would send me a letter to confirm that I was on the electoral register at my address if needed.

I though that this would be sufficient ammo to at least re-apply or appeal the previous decision.

However, the chap I spoke to disappeared for a few moments and came back to inform me that my previous application had been declined because I had incurred bank charges in May 06. These charges were removed from my account because there were mitigating circumstances.

I moved address at the same time as upgrading my current account. It meant that in the confusion of moving I didn't arrange a standing order from my current to my bill account.

I incurred charges because although my current account was full there wasn't quite enough to cover a couple of dd's from my bill account. At the time i contacted the bank and had the charges removed without too much fuss because of the circumstances. The direct debits that bounced weren't subject to any credit agreements, and i paid these by debit card from my current account.

Is it right that these charges can prejudice me, even though they were rescinded? On my credit reports my account conduct is completely clean!

Is this likely to have any bearing on applications with other instituions? These are the only charges that I have incurred for the whole duration of banking with them!

Again any advice or views appreciated as ever!

All the best

Adam