Which loan provider should we try now?

Jo4

A friend is looking for a loan of £8,000 over 5 years and their application with Alliance & Leicester has been refused. They do not owe any money and have a fantastic credit report, who would be more likely to give them the loan they need?

Phoenix79_2

Their bank? Why have they been refused? Seems odd if they have a fantastic credit report

Jo4

Phoenix79 wrote:

Their bank? Why have they been refused? Seems odd if they have a fantastic credit report

Possibly because they do not have loans, hp.... Sometimes I think it is a catch 22 situation, you cannot get credit if you don't have credit.

Moonbeam

I'd suggest their own bank - do they have credit facilities at all e.g. overdraft, mobile phone contract, debit card etc. All of these things can help when looking to borrow...

Phoenix79_2

Jo4 wrote:

Possibly because they do not have loans, hp.... Sometimes I think it is a catch 22 situation, you cannot get credit if you don't have credit.

True but if they have had no credit before then they wouldn't have a fantastic credit report.

First port of call should always be your own bank....not sure if A&L were your friends bank anyway? If not then just have a look at the best loan rates and give another one a go. Northern Rock or Abbey etc. Just off the top of my head. A second application won't impact on their credit file too much. If they get refused from other providers then there would seem to be an underlying problem. If that happened i would suggest they got a copy of their credit reports from the agencies to see if eveything is in order

Jo4

Moonbeam wrote:

I'd suggest their own bank - do they have credit facilities at all e.g. overdraft, mobile phone contract, debit card etc. All of these things can help when looking to borrow...

They have an overdraft which is not in use, the only DD they have is for their mobile phone and they do not have any SOs. They have a debit card.

chani1

the loan reason or affordability and how long at address/curr bnk/electoral roll can all be a deciding factor on final decision but even if your rating is immaculate and the loan for examp is for say business purposes tax/vat demands and things like that they are a straight decline (only based on my experience working with several loan companies an an unsecured basis)

Moonbeam

Jo4 wrote:

They have an overdraft which is not in use, the only DD they have is for their mobile phone and they do not have any SOs. They have a debit card.

They have got some credit then - so lack of credit is not really the problem - I'm assuming that A&L didn't actually tell them why they were declined. I'd suggest they get a copy of their credit file just to check all is correct and that they apply with their own bank....sometimes declines do happen with new business or when keying errors take place - probably best if they go into branch to apply rather than try over the phone/internet - it can be helpful to talk to someone face to face in these situations...

Good luck..

Jo4

Phoenix79 wrote:

Their bank? Why have they been refused? Seems odd if they have a fantastic credit report

Received an email this morning stating that they have been accepted by Moneyback Bank, "brought to you by Alliance & Leicester". Surely this is odd, to be refused on the 6th and accepted on the 9th by the one company??

tommy_a

try northern rock

Jo4

tommy_a wrote:

try northern rock

Thanks for your response but if you read post 9, you'll see she has been accepted for a loan. :j