Refused loan with Nationwide - Help

Popeye84

Morning all,

I have been to my local Nationwide this morning to try and get a loan for £7.5k and was refused. I then changed it to £4.5k and was refused again.

I bank with Nationwide and also have a credit card with them and mortgage.

As it stands I am £650 overdrawn with a limit of £800 and I have £1100 on my credit card with a limit of £6400.

I need a loan for a new car as I am changing jobs and will need to give back my company car. I was planning on taking out the £7.5k loan so that I could pay off my credit card and and overdraft as well. I know that this isnt really taken into consideration though hence why I then applied for a £4.5k.

I have got a score of 850 on Experian which is fair.

Can anyone help me...I feel that I was refused as I currently have access to up to £6400 on the credit card already??

Is it worth applying online with other lenders or will this look bad if I have multiple applications in the space of a day?

If it comes to it I can by a car on my credit card but I really dont want to do that.

Any information would be a great help as I am little bit stressed out at the moment.

Many Thanks

Tixy

Do you use your overdraft regularly? every month? if so nationwide may well feel that you would not have the money to afford the repayments on the loan (as you don't have any spare money each month). The high credit card limit is probably also counting as a negative. On the balance on your card do you pay the minimum payment or more?

Do you have any other credit products with other banks?

How much do you earn currently?
Did you tell nationwide you were changing jobs? this might also show as instability, especially as many jobs have probation periods, they could be worried about you not keeping the new job and not being able to afford the repayments.

Popeye84

Hi Tixy,

I do use the overdraft regularly and have done for the last 10 months or so. I have never gone over the agreed limit though.

In regards to my credit card I have never just paid the min. amount and I have never missed a payment.

I have been earning around £26,500 per anum including comission but in my new role I will be on a basic of £30k and then comission on top of that.

I did inform them that I will be changing jobs but I don't think that was entered into their system when applying for the loan and all quotes based on the £30k salary.

I would like to keep all my finances with Nationwide but I don't want to risk lowering my credit card limit and then still be refused the loan.

Should I be in a panic that I won't be able to get a loan anywhere and the credit card is the only option?

Regards

opinions4u

I have got a score of 850 on Experian which is fair.

Jesus, if you're not scoring 999 there's a massive problem!

Seriously though, what does it actually say on that report? Are you on the voters roll? Are there any historic missed payments or late payments? How many addresses have you had in the last 3 years?

A suggestion to all those who benefit from a company car: Get some savings behind you, just in case!

Popeye84

opinions4u wrote: »

Seriously though, what does it actually say on that report? Are you on the voters roll? Are there any historic missed payments or late payments? How many addresses have you had in the last 3 years?

I am on the electorial role and it is showing that I have been on all but one of my last 4 addresses.

In the last 3 years I have been in 3 properties including my current address. We rented one for 2 years and then lived at my g/f's parents for 6 months whilst saving the final cash for or deposit/house.

I currently have current accounts, credit card, phone contract and a santander loan (through DFS) showing on the report. The DFS loan is a 0% finance agreement for £676 for some furniture which we have just started paying after the initial 12 months interest free period.

All of these are satisfactory and payments have always been up to date and never missed.

opinions4u

I'd suggest address stability is the main thing impacting your credit score.

People who move around more are statistically proven to be a higher credit risk.

Popeye84

opinions4u wrote: »

I'd suggest address stability is the main thing impacting your credit score.

People who move around more are statistically proven to be a higher credit risk.

Hmmm that's annoying as I will be at this current property for a while!

So, thanks for your help so far....but....should I keep trying other lenders?

Thanks

opinions4u

Popeye84 wrote: »

Hmmm that's annoying as I will be at this current property for a while!

So, thanks for your help so far....but....should I keep trying other lenders?

Thanks

Who else do you have a financial relationship with? Savings accounts, secondary current account etc.

I think you should try elsewhere, but when your main provider has turned you down, don't get your hopes up.

If you get a third decline, that's the point to stop.

Sorry - no guarantees of success here.

Popeye84

opinions4u wrote: »

Who lse do you have a financial relationship with? Savings accounts, secondary current account etc.

I think you should try elsewhere, but when your main provider has turned you down, don't get your hopes up.

If you get a third decline, that's the point to stop.

Sorry - no guarantees of success here.

I have a joint Royal Mail savings account with my partner and then the agreement with Santander for the furniture from DFS.#

Would you advise trying Santander?

I really didnt think it would be this difficult to get a loan sorted out and I really hope I dont have to use my credit card to buy a car.

Many Thanks for your help so far.

somethingcorporate

The constant use of your overdraft will also raise alarm bells with Nationwide, if you cannot keep your account in credit then it suggests that you are not that great with money.

A loan for £7.5k = a lot more credit = higher risk.