Can't get a loan! Help!

kajstring24

Hello all,

I know there are a lot of posts on the same issue, but I'm just looking for some personalised help.

I've never applied for a loan before, but I do have a credit card and outstanding student loan (I graduated from a post-grad course in 2010) I'm after a £6k loan to pay for a new car. However, I've tried to apply through Sainsburys and have been rejected and now I'm worried. I'm waiting for a decision from A&L but I'm not hopeful.

Can anyone help? What options do I have now?

I've not been in my current job very long and I have moved around a lot but that's because I've been at university, I understand that this can have a negative bearing on whether or not I can get a loan. However, the money I earn is another to cover the monthly payments even with my outgoings.

I'm very new to all this, so any friendly advice would be helpful. I could get a £3k loan and pay the rest out of my savings, will doing this help my chances of getting a loan or not?

Thanks in advance.

BoGoF

How much do you earn?

kajstring24

Just over £23k per year.

BoGoF

Can only think it is the amount of time in your current job counting against you as it should be feasible - depending on the level of your CC debt.

Have you checked your credit files?

kajstring24

I'm waiting for Experia to send me an ID number so hopefully I'll get some info soon.

opinions4u

For the lowest rate lenders (typically Tesco, Sainsburys, M&S etc) the most suitable customer will be:

- homeowner with equity in their property
- on voters roll
- lived at address longer than 3 years
- employed with the same employer for longer than 3 years
- no late payments, defaults, arrears on the credit file
- little to no outstanding balances on credit agreements
- well conducted credit card account(s) for 3 years or longer

That doesn't mean all applications that don't meet all these criteria will fail, but don't be surprised if an applicant who doesn't tick all these boxes fails to get a loan.

I'd suggest talking to your own bank. It might have a higher rate, but they will be more likely to accept you.

Stuart_W

If you are buying a new car, does the dealer not have a finance offer available? That will at least give you figures to compare with saving up more first, or loans from whoever will offer you something.

Likely to be uncompetitive, but you will probably not have many options open to you. If you have a good part of the cash saved up, best option will probably to talk to your bank.

If you're planning to save up for a few more months first, your local credit union may be somewhere that can help. Mine, for example, will allow a new member to save up for three months and then offer a loan of three times their savings balance (provided they have evidence of their regular income). So, save £350 a month for 3 months and that £3,000 loan would be available. All Credit Unions are different, though.

kajstring24

Thanks all, the dealer does offer a good finance option, however I'm worried about any hidden terms and conditions so I've asked for them to send me more info. I'll speak to bank for advice as well. Is it true that if you keep applying for loans and being rejected that will count against you? How long should I wait between applications? Are the dealership more likely to accept if I apply for finance with them?

kajstring24

Thanks all, the dealer does offer a good finance option, however I'm worried about any hidden terms and conditions so I've asked for them to send me more info. In addition, I'm not comfortable with not owning the car and reading the advice on here about secured loans, I'm a little put off. I'll speak to bank for advice as well. Is it true that if you keep applying for loans and being rejected that will count against you? How long should I wait between applications? Are the dealership more likely to accept if I apply for finance with them?