Loan application problem

j.davies88

I am 22. I have just applied for a personal loan with Sainsburys and i have been declined. I am a homeowner and have had finance for tools for work before, but i have never had a credit card, car on finance or a contract phone. Help???

USM

How much did you apply for?
How much do you earn?
How much outstanding credit on other items do you have?
Are you on the electoral register?

j.davies88

I applied for 7000 i earn 14 and i have no outstanding credit on my other items. i have never voted in the election so not sure if i am on the electural register. Could this be why i am having problems???

Emmzi

applying for a loan of 50% of your gross income is probably why you are being rejected - just too high an amount

fozmcfc

Unless your mortgage is ultra low, surely your mortgage repayments, utiltiy bills, council tax etc would mean after repayment towards a £7k loan, you would have no money to live on. They may see it that you would be overstreching yourself.

The best people and possibly only people who may lend would be your bank, they will know your finances better than anyone and maybe able to assess your likelyhood of being able to service a £7k loan on £14k earnings.

I think even when companies were virtually chucking money at people who wanted loans it would have been considered a high amount compared to salary.