Why can't i get a loan?

mumtomany_2

Tixy wrote: »

It might be that its just a bit too high for them in terms of affordability - although even once the balance is lower they might still choose to decline until first loan is fully paid.

You are right not to apply lots of times - although maybe you could try either zopa or nationwide who do a soft search and doesn't show up as a credit appliciation to other lenders? Could you possibly try applying for a smaller amount with one of these - or does it need to be that amount or nothing?

I could try a smaller amount as part of the money i wanted is not essential just desirable!! I know i am being a bit greedy but i know i can afford the payments, as i have the money (i just can't be bothered to wait while i save up) I will try nationwide first i think.

Thanks for all your advice x

Cash_Flow

mumtomany wrote: »

Hello,

I hope some of you maybe able to give me some tips or explain why i maybe being refused credit.

I recently applied for a loan of £11450 from my bank Santander. I have a balance of £3129 left on my current loan but this would have been cleared with part of the new loan.

My credit report shows i owe a total of £3940 including this santander loan. I have other old account which have been paid off with no missed payments. I am on the electrol register.

My total income is around £31000 before tax and i have very minimal outgoings. I have never missed a payment on my loan or Credit Card. My bank account only has a £400 overdraft which i haven't used for sometime and i have savings of £1700 with santander.

Why would i be refused credit?

There was a debt owed to Shop Direct which showed as settle on the 1/11/08 and the file showed a 0000000033U. I rang Shop Direct and they have agreed to rectify the report but surely this wouldn't be effecting me?? It was settled over three years ago according to the report (not that it should show missed payments as that wasn;t true).

The only other thing is there are searches for car insurance. Does this cause problems? They show as quotes?

Any help very much appreciated.

The adverse information on your credit file will not be helping your cause.

Niv

mumtomany wrote: »

Hello,

I hope some of you maybe able to give me some tips or explain why i maybe being refused credit.

I recently applied for a loan of £11450 from my bank Santander. I have a balance of £3129 left on my current loan but this would have been cleared with part of the new loan.

My credit report shows i owe a total of £3940 including this santander loan. I have other old account which have been paid off with no missed payments. I am on the electrol register.

My total income is around £31000 before tax and i have very minimal outgoings. I have never missed a payment on my loan or Credit Card. My bank account only has a £400 overdraft which i haven't used for sometime and i have savings of £1700 with santander.

Why would i be refused credit?

There was a debt owed to Shop Direct which showed as settle on the 1/11/08 and the file showed a 0000000033U. I rang Shop Direct and they have agreed to rectify the report but surely this wouldn't be effecting me?? It was settled over three years ago according to the report (not that it should show missed payments as that wasn;t true).

The only other thing is there are searches for car insurance. Does this cause problems? They show as quotes?

Any help very much appreciated.

You have a loan of £3129 but your credit report shows you have a debt of £3940. What is the remaining £811 for? Could this £811 be messing things up at all?

Even though you are not using your OD that is probably still being counted as credit so add that on, as is your credit card.

All I can suggest is ask the bank why you were refused. I have had a similar situation with a Sainsburys credit card, got refused, applied to Amex and got one. Most odd. I have never had a default in my life... really wanted the nectar points too hehe.

Niv

coldcazzie

mumtomany wrote: »

I did say the loan would be used to clear the £3129 on my other santander loan. So not really 50% of my income.

The problem is that they can't guarantee that. Yes you have good intentions, and you may very well follow through with what you're saying, but there are many people who apply for loans on the basis that they will use them to consolidate/pay off something else, but then either don't, or don't address the issues that lead to them being in debt in the first place (thus leading to even further debt). The bank can't differentiate between the two, and so are very wary about lending.

Tixy

coldcazzie wrote: »

The problem is that they can't guarantee that.

They can if the its with the same bank, they simply use £3k odd to pay off the old loan and only advance the remaining balance of £8k odd into her bank account.
Its why people can find it easier to consolidate with their own bank than with other banks.

dealer_wins

On your level of income and your "minimal outgoings" you should have a good few thousand saved up surely?

Or are your minimal outgoings a bit higher than you think?

mumtomany_2

dealer_wins wrote: »

On your level of income and your "minimal outgoings" you should have a good few thousand saved up surely?

Or are your minimal outgoings a bit higher than you think?

No i like to spend my money!! Plus i haven't had that income all my life. I have managed to save £1700 as i said and thats on top of the £2.5k i have paid out on my wedding stuff (since June 2011) Not bad going i'd say £4.2k in 6 months!!!

I know my exact monthly outgoings, as they don't really change and i live in a very cheap rented property! But i do like to spend my money on my kids rather than save it for a rainy day.

somethingcorporate

What do you want the loan for aside from a small amount of consolidation? your reason for taking a loan may also raise flags.

mumtomany_2

somethingcorporate wrote: »

What do you want the loan for aside from a small amount of consolidation? your reason for taking a loan may also raise flags.

I'd rather not say on here (as its personal) and i select other when asked. When i have spoken to creditors in the past they have no interest in what it is for. I was told by a bank manager it is purely for stats. Does this really matter when applying???