Credit report for bank loan.

ps10006

I need some advice or insight as to why i cant get a personal loan. My credit report sumed up as follows:

• I am 22 years old, and lived at my adress all my life.
• Been in my full time job for over 3 years.
• Been on the electoral roll for over 3 years.
• Phone contact for 2 years - Full payments and none missed, all green ticks.
• Current account with Natwest for 2 years - Handled perfect, all green ticks.
• Vanquis credit card for 1 year - Payed every month on time, all green ticks.
• Capital one credit card for 1 year - Payed every month on time, all green ticks.
• Barclays credit card for 4 months - Payed every month on time, all green ticks.
• Next directory account from 2007 - Handled perect, all green ticks.
• Never defaulted, never missed a payment, no CCJ's or IVA's.
• No financial connections either.
• Most importantly my debt to loan ratio is no more than 30% ever.

I didnt have any searches to my name, last week i applied for a personal loan of £5000 and was rejected by my bank Natwest. I then tried with Nationwide and was also rejected. I now have 2 searches to my name so i wont try again untill their gone. I just need to know what more i can do? or if i am doing anything wrong? I handle my accounts money perfectly so i am now totally and utterly confused and feel like giving up. I need a reliable car for commuting.

Thanks in advance..

Tixy

The credit cards - you say paid every month on time? is that paid in full or minimum payment or somewhere between the 2?

How much is your total debt at the moment?
How much is your total credit (used and unused) on all cards, loans, overdraft etc?
How much do you earn?

ps10006

Hi thanks for your response. In regards to the credit cards, i try to pay in full every month. However on sum occasions i fall slightly short of that but i always pay far more than the minimum payment...

My total credit over the 3 cards is £1800.

Currently owe about £400 spread over the 3 cards.

I get paid monthly, about £1600per month (minimum depending on bonus), which gets paid directly into my bank account.

Tixy

Hmmm - isn't your credit to income ratio either then. And you seem to be handling the cards very well from a lenders point of view and your salary goes into the bank account.

I don't suppose natwest gave any idea as to why you were declined? Did you tell them it was for a car purchase? Does the current account have an overdraft? do you use it?

Which credit report did you get? just might be worth getting the other 2 to check there is nothing incorrect on them. (Experian, equifax, callcredit)

AdamMc90

You're pretty much the same as me income wise, and I'm 21 and I'm with Natwest and I've just been approved on a £6000 loan.

The only difference is you have more credit, I have one credit card through Natwest which I owe nothing on at the minute but have a £1200 limit. Did you apply online via the Natwest website? And do you have an advantage Gold account? If so the only noticable differences between me and you would be the amount of credit cards you have so the problem may lie there...

Letfromspain

AdamMc90 wrote: »

You're pretty much the same as me income wise, and I'm 21 and I'm with Natwest and I've just been approved on a £6000 loan.

The only difference is you have more credit, I have one credit card through Natwest which I owe nothing on at the minute but have a £1200 limit. Did you apply online via the Natwest website? And do you have an advantage Gold account? If so the only noticable differences between me and you would be the amount of credit cards you have so the problem may lie there...

His only available credit is £1,800 and although it's spread over 3 cards, I would have thought that shouldn't have any impact.

ps10006

I applied online for the Natwest loan. The rejection letter said it was due to my credit scoring but didnt elaborate. And yes i outlined it was for a car purchase on the application form. My current account does not have an overdraft as i thought it pointless as i would never go into it. And i have memberships to both experian and equifax - no anomolies or mistakes or anything like that.

Thanks for the reply Adam. I applied online as stated and i have an advantage blue account... i didnt see the point in paying the extra when i wont need the benefits. And okay i see what your saying, just find it frustrating as i got these cards not because i needed them, but to actually build my credit score! Been trying for 2 years now and still no luck.

Thanks previous poster, i thought the same.

izools

Did you get a quote from nationwide before applying with them? They do a soft search and give you an APR before you go through to apply.

Was the APR 24.4% or less when they quoted you?

I'd suggest you try social lending -

www.zopa.co.uk - they are strict but have low APRs - they will tell you if you aren't eligible without doing a full search, they do a soft search initially - they search Equifax so won't see the Nationwide application either.

www.yes-secure.com - they aren't strict but the APRs tend to be higher - they use Call Credit to search your files so won't see either the Natwest or Nationwide application - you then create a listing and other folks chip in to fund your borrowing.

The Barclaycard only being open for four months may be a risk signal as it's not been open for long enough for any prospective creditors to tell if you can handle the commitment responsibly - accounts like to be seen to be open for 12+ months with no missed payments for the creditor to consider you able to handle it well.

AdamMc90

I wouldn't have thought the credit cards made any difference neither! Just trying to spot anomolies to why I would be accepted and you wouldn't. Maybe its worth giving Natwest a ring and asking why they declined? Their call centres are normally pretty helpful.

ps10006

hi, thanks for this. yes funnily enough the APR was exactly 24.4%! Thank you kindly for the suggestions, which im sure i will try at some point, however im looking for one through my bank even if i have to wait longer. Just needed inputs as to why i cant get one and what i can do when im clearly a good risk and have been doing all i can to build a good rating. I just wish it wasnt all decided by computors, instead of sitting down with my branch manager and having them decide.

izools

The Barclaycard having been open for such a short while could be an issue.

I do find it worrying however that Nationwide quoted you 24.4% (which is nationwide-speak for DECLINED) given your profile as they quoted me 8.9% and I owe a lot more than you, and have new accounts.

The only thing I can think of is a rogue linked address - Experian don't show you data at linked addresses that you don't specify on your application for your credit file even if a creditor would see the data at that address.

Call them up and see if there is data not showing on your copy of your file due to a linked address or address mismatch.