How much longer to improve credit rating to get a bank loan.

Tixy

They look at your credit file as just 1 factor in the application, but they also look at how much you earn and what your other financial commitments are to determine whether you'll be able to afford repayments.

They also tend to take into account how long you have been at your current address and in your current employment for signs of stability (eg if someone has just started a new job in the last couple of month then they would be seen as higher risk than someone who has been in a job several years - as new jobs often have probation periods and its easier for an employer to get rid of an employee who hasn't been there long). Even things like providing a landline on your application as well as a mobile can sometimes be taken into account.

The lender needs to assess from all these things (and your credit file) how likely you are to be able to afford the repayments on a loan, how likely you are to keep up with payments and not flit away and disappear so they cannot chase you.

I'd guess from your salary and other accounts you hold that they'd think you'd be more likely to be able to afford repayments a loan of say £4k then a loan of £7k.

geoffky

Have you asked work for a loan for a car via wages..?

ps10006

Hi, Thanks for your response. I will definately look into geting a smaller loan if that improves my chances. Also, with the work issue, i have never considered that. Do you mean they buy the car/loan me the money, and take my repayments out of my monthly wages. i dont think its a possibilty as i have never heard of this happening..