Good Credit but declined on affordability

CLAPTON

how much are you trying to borrow?

LovelyLeeds

Sophie-Louise wrote: »

I've taken a new job that is slightly more money, but mainly has much better future prospects and opportunities for myself, as well as additional bonuses and employee benefits.

Well done on improving your career - jobs are not easy to come by at the moment, so give yourself a pat for that!
As you have very little outgoings, not even paying board, you should really try to clear your debts - and from reading what you've put, it shouldn't take that long - providing you can try to stop using your cards for further spending.
Don't let pride get in the way of asking your parents to be guarantor for the loan - if they don't charge you board, I can't see them saying no to this.
All in all, I'd say with a few nips and tucks - you'll be fine. Try not to see debt / credit as an easy option - it's not.

chalkie99

Yes, well done for getting a better paid job but remember that the £1500 pay rise will be nearer £20 a week after tax and national insurance and that £20 will just about cover your petrol for travelling to work.

That leaves you a big hole in your wages for loan repayments and other running costs.

Experian_company_representative

Credit reports don't show the outcome of your credit applications by the way, just that you applied.

James Jones

Hax

With regard to the comments about asking your parents to stand as guarantor for the loan, you'd be better off just asking them to take out an unsecured loan and for you to make the repayments.

I say this as loans requiring a guarantor are normally for those struggling to get credit and will attract a higher APR than if your patents just got a loan themselves.

cavim

Even better, if your parents have the spare cash, ask them to lend it to you and put in place a repayment plan to ensure you repay them. You can set up a standing order from your bank account to theirs so that the monthly repayments get paid each month on a set date.
If your parents have savings that aren't earning much (eg a building society savings account at, say, 2%) you could agree to pay them more interest than they are receiving in the savings account - that way you all win and there's no impact on your credit rating. Having the standing order would also show to the bank in the future that you're capable on making regular payments on a loan.

Hax

cavim wrote: »

Having the standing order would also show to the bank in the future that you're capable on making regular payments on a loan.

No it won't - the bank won't know that it's a "loan" - all they will see is a standing order going out every month. For all they know, it could be to another account in the OPs name from which they withdraw the money and blow it on partying...

But I agree that borrowing from the parent's own funds would be the best option - if available! You could pay them back with a 5% interest rate - and you'd still be beating other loan offers and your parents savings would keep pace with inflation (for the time being at least!)

Neither my suggestion nor cavim's suggestion will have any impact on the OPs credit records.