Supposedly good rating, yet declined by Northern Rock

dnamurphy

Thanks for the advice. I checked the Lloyds website, and it said as much about the graduate loan. I may qualify for the higher/further education loan though, which is 9.9%APR I think - not particularly fantastic, but something about beggars and choosers! Problem is, I have to go into a branch, which is a pain given I'm out of the country next week (I was hoping to get the paperwork all sorted by now :rolleyes:)

I'd also noticed about the 5k cut off, so I'll certainly be applying for 5k and going for the lower rates - I'd probably save it on the interest alone.

Another question - as I already have an Egg card, which has my largest CC balance on, would it be an idea to apply to Egg instead, as I've been a loyal customer for 4 years or so? It's a little frustrating because I'll probably be able to clear the loan over the course of 2-3 years, but I don't want to pay through the nose for the loan, and being refused once has made me pretty wary.

Maximillion

The website https://www.moneysupermarket.com (pretty sure martin reccomended this on radio two yesterday and in MSE loans articles) offer an enquiry type (no impact on credit file) search via the credit reference agencies that will give you an idea as to which companies are more likely to accept you.

It sounds to me apart from the payment slip ups etc. Your credit file will show a considerable amount of accounts and cards. Shedding some of these may improve your "score." ditch the bank accounts you don't use. Can you shift the balance of the card with the missed payments history and close the account? this account will then appear as "settled" on your file which I believe has a positive affect.

Also check for other other things which may be detrimental to your file such as not being on the electoral role, any incorrect information or financial associates.

I would suggest having a look at your credit cards too, you may be able to shift balances and/or lower rates even make it possible to buy the car on a card but only if you can get a long term low rate e.g "life of balance" transfer. You could tart between cards but if your credit file hinders this it isn't worth the risk of getting stuck with a large CC bill you can't shift.

Good luck

UK007BullDog

There were a few things doing against you that is why NR wont lend to you.

1. You have already access to credit via your CC's which is a lot compared to your income. You are trying to get a loan more that 3 times your income.
2. You missed some payments.
3. Age: Are you over 21?
4. Are you registered with the council/on the voters roll?
5. You have only been in your job less that 3 months.

Pay off your CC's and close them down.
Get registered with the council
Wait a couple of months until you are past your 6th month (probation period), so the risk of you getting the sack is less likely.

dnamurphy

Hi, thanks for your comments everyone.

Not all of the bank accounts are credit bearing, so am I right in saying they shouldn't have much or any impact on my credit rating?

The loan amounts to 1/3 of my income, as opposed to 3 times. I am over 21 (26) and registered on the electoral roll, but I certainly hear what you're saying about my length of employment. Although I don't have a probationary period per se, it may be worth holding out for another few months until I've been in the same position for 6 months, as that presumable lowers risk.

With regards credit cards, I did transfer some debt from my Egg card onto interest free cards - which is why I have however many I have now, namely as the credit limit I received on one card was insufficient. I guess that's a kind of "reverse-consolidation" - I split up my debt to make it cheaper rather tham lump it together! (I also didn't pay any transfer fees for these cards) I'm keen not to make any purchases on CC, and I'm fairly sure the APR on purchases would be fairly crippling if I shuffled money around to make a big purchase!

Would it harm to try another loan application now, as I'd rather not have to wait another 3-4 months to get money for a car! If I were rejected again, would it have any impact on future (ie 3-4 months future) applications?

Pantera_Fan

May be worth speaking to the dealership you plan on buying from. I bought a car today which amounted to £3790 after part exchange and deposit etc and they didn't accept credit cards due to charges - think a scam to make you purchase their finance personally. Anyway, I discussed their finance options and been quoted 6% on a loan of £3790 secured against the car. £175 a month over 2 years = £4.2k. Think this is flat rate (waiting for final figures) but compared to other loans for this amount not too bad - once all in place I will either settle on 0% cc or simply let it run its course, not too concerned about paying an extra £5-10 a month for convienence of fixed monthly payments and transferring credit cards every 6-12 months. Plus the balance transfer fees eat into any potential savings so overall not such as bad deal.