I keep getting refused loans, what's going wrong?

Wulfrune

Hi

I have made 2 applications for personal loans recently.

First one was with Santander; whom advertised the loan at 8.7% APR, only for them to send me back the loan agreement at 12.9%. Needless to say, I wrote to Santander and told them what I thought of their practices. But, it seems I'm a high risk.

I have just been refused a loan of 7.5k with M&S, once again stating that I had not met their requirements.

* I am buying my house on a mortgage and am in positive equity.

* I have no CCJ's

* I never pay my bill late

* I am clear with Experion

* I am married

* In full time, well paid employment

* Am on the Electoral role with a gap in it where they made a mistake and didn't update the records.

* Am 50 years old

What am I doing wrong?

It's not like I'm spamming for loans.

The only thing I can think of is my address is kind of weird in the fact that different companies see my address differently and in the past Santander refused me a premier bank account with them solely based upon my address.

Please, if anyone could give me some advice here, I would be grateful

Regards

Wulfrune.

Tixy

Only 51% of people who they accept for the loan will be given the rate advertised, getting accepted for the loan at a slightly higher rate does not mean you are high risk, just that you are not their ideal or target customer.

What other debts do you have? what other unused credit do you have?
Are you financially associated to your spouse? what is their credit file like?
How much do you earn?
Have you checked your credit files with the credit reference agencies? have you checked equifax as well as experian?

Wulfrune

I do have 2 other loans, nearly paid and a nearly maxed credit card, never missed payment.

Wife is not linked and she's just move from abroad.

I earn rough;y £42k a year

Tixy

How close together were the 2 applications?
You might have failed the second loan check because they could see you had applied for credit somewhere else (from seeing the search the first co had done) and so they may have been worried about your debt to income ratio (as they wouldn't be able to judge how much credit the other lender may have just given you, if anything).

Common_Sense_2

Wulfrune wrote: »

Hi


First one was with Santander; whom advertised the loan at 8.7% APR, only for them to send me back the loan agreement at 12.9%. Needless to say, I wrote to Santander and told them what I thought of their practices. But, it seems I'm a high risk.

It may be that that rate was for a loan amount higher than what you wanted, lots of loan companies offer a lower rate for higher borrowing.

It may be time to swallow prode and ask them if that offer is still available and take that loan.

jon_boy75

you think 12.9% is unacceptable?

I would be biting their hand off for that in todays climate

The higher rate doesnt mean you're a high risk...high risk borrowers dont get loans AT ALL today. It just means you dont perfectly fit their 'perfect' customer profile

~Brock~

jon_boy75 wrote: »

you think 12.9% is unacceptable?

I would be biting their hand off for that in todays climate

The higher rate doesnt mean you're a high risk...high risk borrowers dont get loans AT ALL today. It just means you dont perfectly fit their 'perfect' customer profile

Completely agree :T

CLAPTON

what is your total existing debt
how much were you asking for

drbesty

A maxed out credit card would set some alarm bells ringing for me, not the type of thing lenders like to see on a credit file

Wulfrune

CLAPTON wrote: »

what is your total existing debt
how much were you asking for

about 7 to 8 k owed

asking for another 7.5k

Wulfrune

drbesty wrote: »

A maxed out credit card would set some alarm bells ringing for me, not the type of thing lenders like to see on a credit file

I pay every month, on time, never missed a payment