Girlfriend rejected for Loan

NMR_Challo

My girlfriend has recently been rejected for 3 loans she has applied for online for around 2k for a car.

She recently did a credit check it said she had bad credit....on pushing her for more information she said that around 4 years ago she moved out from her aunts house, but her aunt took out some county court judgement claiming she owed her money in rent etc. To solve the matter she paid all outstanding monies and moved out.

Now would this be sitting on her credit report affecting her score? Also she has never had a credit card, loan or overdraft as is always good with money. Also many years ago her parents defaulted on their mortgage when they divorced...would this impact her?

I keep saying to her to get a full copy of her credit report so we can go through it and understand why she has a bad score, but she buries her head in the sand and ignores it.

Do we go through the report and try and find out why she has a bad score? How will this been shown?
As she has been rejected online for loans, would it be a sensbile idea to pop in and speak to a financial advisor at her bank to discuss a loan. She has been in continous employment since she turned 18, 8 years ago. So can easily pay it back.

I have mentioned saving and this is possible but due to her trainfare, rent and other expenditure she could only save a small amount per month, so a loan would be a better option.

Any help would be fantastic as its getting her down.

Hollypop_2

Forgive me for been a little confused here, but if your girlsfriend did get a loan she would have to pay out £x amount per month, so if she can only afford to save 'a little' how can she expect to pay the loan back?

She needs to get copies of all 3 of her credit reports to find out exactly if she has defaults or CCJ's. as they stay on your credit file for 6 years either way.

Her parents wont affect her credit in anyway, unless she was on the mortgage or any joint credit agreements with them.

Also applying for credit again and again is just lowering the score even more, so i wouldnt apply again now for at least 6 months.

You cant do much else untill your girlfriend is prepared to be helped to be honest.

P.S whatever you do, do NOT get a loan for her. any joint credit agreements will jsut bring your score down and neither of you will be able to get credit.

Voyager2002

A loan would NOT be a better option than saving, because then she would be paying interest charges as well. If there is only a small surplus left out of her income once she has covered all her necessary expenses, then the cost of servicing the debt might be enough to push her over the edge. (Not to mention all the additional costs of owning a car, such as maintenance and insurance...)

As for her credit record: no, she would not affected by her parents' default. However, if her aunt obtained judgement against her in a county court, then that would be a serious black mark (unless she paid off the full amount within a month). And if she paid off the full amount, does the record show this? If not, she would have to provide evidence of the payment to the court that ruled against her.

Basically, if she wants to deal with this then she will do so, and if she does not then it is up to her to leave it. In any case, most adverse information on a credit record disappears after six years.

NMR_Challo

Sorry I wasn't clear about that piece. She currently has to pay for a monthly train ticket which is very expensive. She would use the loan to buy the car, and drive the car to and from work. This will remove the need for the monthly train ticket.

You mention all 3 credit reports? Can you expand on this as thought you only had 1 report?

The_Cappuccino_Kid

NMR_Challo wrote: »

You mention all 3 credit reports? Can you expand on this as thought you only had 1 report?

Experian, Equifax, Callcredit.

Different lenders use different agencies.

somethingcorporate

NMR_Challo wrote: »

Sorry I wasn't clear about that piece. She currently has to pay for a monthly train ticket which is very expensive. She would use the loan to buy the car, and drive the car to and from work. This will remove the need for the monthly train ticket.

Petrol, insurance, tax, maintenance is expensive! Especially on a banger.

NMR_Challo

somethingcorporate wrote: »

Petrol, insurance, tax, maintenance is expensive! Especially on a banger.

Yes I agree that these are costs, but it would work out roughly the same to have these and the loan repayment amount, compared to the trainfare and saving the money.

The loan would mean that she could obtain a car sooner.

opinions4u

county court judgement

She won't be seeing mainstream credit until this drops off.

lizzywig

She might want to find out what the interest rates were on the loan. Earlier this year my husband and I needed a new car and went to a chain garage which offered finanace. The car cost approx £4K and if I remember rightly the repayments were £150/month for 3 years, totalling a repayment of £5400. I wasn't happy with this amount so I contacted my bank knowing that we'd put a lot their way, they could give me the £4K loan but the total repayment would be £7.5K!! In the end we saved half the money, took and overdraft out for the rest and then when one of our credit cards had a 0% interest for balance transfers we transfered the balance of the overdraft, we now pay a smaller sum each month.

Unless she looks at her credit score and why it is the way it is then she will just be stuck in the same place. I can see how she's stuck in a catch 22 position, can't afford to save because of her train fare but can't get a loan either.

Can I suggest that she sits down and works out what her monthly outgoings for a car would be, e.g.

Tax = £110 for a year
MOT = £60 a year
Service = £100 a year
Car insurance = ??? (paying yearly is cheaper usually)
Repairs = £20/month (to be safe)
Petrol = ????
Loan repayment

Once she works out the amount due each month, is this less than what she pays on her train ticket?

natlie

Maybe she is hiding further debt - a CCJ would affect rating but it could be worse - that said never having had credit can go against you too. Aviod any joint finances with her until you know whats up. Dont let her apply for anymore loans, can she do some extra work? barwork or waitressing I did this would make £50 a night with tips.

NMR_Challo

Just found out that it was a CCJ against her name, which has been cleared. Unsure whether it was paid off within 1 month or not.

So i take it as soon as someone see this all credit is refused. They do not take into account her current situation?

Is this a simple matter of she is stuck untill this is removed?