Rejected a loan.. more detail contained within!

lauraloubell

Hi there,

I have recently passed the six years in which a bad debt was added to my account. I have had not one single bad thing in my credit hisory and as such on Friday last week my credit rating became 921... I was thrilled to say the least as I've been battling with debt for 10 years.

I owe £196 to Very.co.uk (£2000 credit limit)

and I have £1200 overdraft limit which I am not in at all.

I have had a couple of provident loans (always on time and the last one paid off two years ago).

I wanted a credit card for my work expenses and so I applied for one on Friday, they haven't given me a decision yet but the search is on my report. I also wanted a loan to pay my boyfriend back some money and so I applied for one from Sainsburys... it was declined because I didn't enter my Nectar number! This is also now showing on my report and my score has gone down by 46 points over night!!!

I applied for a loan from Zopa (this was the only loan that FreedomFinance could suggest for me) and now that has been denied too... I daren't look at what my credit score is now but I am thoroughly depressed that it has moved out of "good" and in to "fair" since the Sainsburys and credit card app.

Will I ever be able to be a grown up with a normal financial life? I am 30 now and I don't feel that having a credit card for work expenses and a small loan of a few thousand quid is too much to ask!! I earn £30,000 a year plus between £500 and £2000 bonus each month.

Would lowering my very.co.uk limit help? If I get this loan I'll pay off the £196 and cancel it altogether!

What can I do?? !!

lauraloubell

P.s the other reason for the loan is that I am going back to be a student in July and so I want to get my finances in order and minimise my monthly payments. At the moment I pay £65 a month on Very.co.uk (using their "take 3" option where you pay a third of your debt and pay no interest) I also pay my boyfriend £170 and the old debt (the one that isn't on my credit report) is £70 a month. This wont be manageable when i leave my job but if I got a loan now the repaymeents would be £150 a month instead which i could manage.

demondoctor

If you're earning £30k and getting bonuses of £500 - £2k a month then surely you can afford to pay off Very and easily save a couple of grand in the next few months. Why do need a credit card for work expenses if you're leaving soon, you must have been able to deal with it so far so why not carry on like that for just the next few months until you leave.

BoGoF

Forget that 921 "score" - totally and utterly meaningless.

You said recently out of the 6 year period - have you actually made sure they've dropped off, sometimes this takes a few weeks.

Your exisiting credit histort is 'weak'. Your overdraft is not a credit arrangement and I doubt your Provident loans will show, probably a good thing!

I really can't see the Sainsbury's rejection being down to the Nectar card thing - that would imply only Nectar card holders can apply? Maybe?

Bottom line is you cannot just jump from where you've been to mainstream cards. Look at the 'credit building cards' first.

But as asked, where does your money go every month?

KingElvis

Yep, Provident loans on your credit report are as welcome as a turd in a jacuzzi

malkyh

KingElvis wrote: »

Yep, Provident loans on your credit report are as welcome as a turd in a jacuzzi

Or as welcome as Asbokid in Wonga's head office.

Bravehearted_2

Bottom line is you're getting any mainstream credit anytime soon. A credit card and few thousand pounds loan is not a right.

lauraloubell

Thanks for some realism. I guess I've just felt like a leper for the past 10 years and to finally see that I can have some semblance of a normal financial life (heck, maybe even get a mortgage one day) and be able to manage my own work expenses (at the moment I use my boyfriend's credit card) and be able to study something I actually enjoy rather than slogging my guts out every day in something I hate felt like a good prospect.

I am saving heavily but that is so I have a little nest egg to live off while I study. I pay no interest on my "debts" so it's not like the situation where it costs more to have debts than to save. I can't afford to save AND pay off my debts.

ANy tips on a loan company that might have me?

Do you think it's the provident loans that are screwing me over? I thoght they would be a positive thing as showed I could manage credit.. obviously not. Where do they teach you this stuff!!??

So I guess I'm just screwed really.

lauraloubell

In response to demondoctor I wish I had just carried on doing what I'm doing with my expenses now. But I wanted to be able to do something for myself and when I saw my credit rating at 921 I thought it would be easy to get a credit card of my own.
I was wrong so I'll just have to rely on my partner for longer. God it's so embarrassing.
ALL my friends have credit cards and I feel like such a dumbo. My employers don't understand why I'm so worried about expenses, they're like "Just whack it on your credit card, you know you'll get it back" I can't admit I don't have one - I'm a 30 year old woman and mother. It's pathetic.

lolavix

If the six years has only just passed I would leave for longer.

If I was in your situation I wouldn't get a credit card at all, but that's because I know what I'm like with having credit available! I would have thought with the bonuses you're earning it would be easy to pay back what you owe - I know you want to save, but obviously these debts are a priority when you won't be working

lauraloubell

Thanks, my "debt" is a couple of thousand that i owe my boyfriend, it has no interest and he doesn't even want it back - it is personal pride that keeps me paying the £170 a month and that makes me want to pay it off. The other debt I have is a very old debt that also has no interest and isn't even on my credit report.
The other is a couple of hundred to Very.co.uk

I am choosing to leave my job because I am on the verge of a mental breakdown and if I don't leave I will end up destroying my family.

I want to consolidate my debts, thus reducing my monthly outgoings to enable me to leave my job and study. I am also saving so that i can support myself while I do this.

I reckon that displays some excellent commen sense.

I didn't ask for judgement on my intelligence, I would like some practical advice.

Lolavix, thanks, I had the same thought about being trusted with a credit card but I've had my boyfriends card for 3 years now and have only ever used it for expenses despite him telling me I could use it whereever so I think I've earned my stripes :j