Can't get a loan ... so frustrating!

MoneyCat_2

Hello,

I'd appreciate any advise on my situation.

I have a good salary, good credit rating, no debts and have a very good credit history with lots of settled accounts. I've never missed a payment.

My credit card limit is only £800 and my overdraft the same. I bank with Barclays and have apllied with Barclays, Barclaycard, other loan providers for a loan or credit but I have been refused by all.

I've made sure to space them out over a few months and my last request was over six months ago.

My Experien credit report says my credit is "good" and that the only negative factor affecting my report is the fact that I have a low credit limit which is a Catch 22 because I just cannot get any more credit.

I've been trying to get a £5,000 loan and just can't get one and I just don't understand why. I find it so frustrating that I can't get any credit at all when I see friends who have £1,000s worth of credit and they earn far less and are in and out of employment all the time.

Is there something I'm missing here? Is there any way around this riduclious system?

Any advise would be appreciated.

Many thanks

KingElvis

Do you "live" in that overdraft?

Tixy

Are your overdraft and 1 credit card the only 2 open credit accounts you have?

Are you on the electoral roll?
Are you financially associated with anyone on your credit reports?
Have you only checked your experian file so far?

What do you mean by a good salary? how long have you been with your current employer?

Do you use the overdraft every month?
Do you use the card? is there an ongoing balance on it?

How many applications for credit in the last 6months? edit sorry - i've just seen you've said none - in that case why do you think you will be declined if you've not even applied for one recently?

chalkie99

MoneyCat wrote: »

I see friends who have £1,000s worth of credit and they earn far less and are in and out of employment all the time.

That's not something to aspire to. Be grateful you are not them.

KingElvis

OTCredit wrote: »

God bless your friends if they maxed their credit facility

Amen brother, amen.

MoneyCat_2

Thanks for your response.

Are your overdraft and 1 credit card the only 2 open credit accounts you have? Yes

Are you on the electoral roll? Yes
Are you financially associated with anyone on your credit reports? No
Have you only checked your experian file so far? No, I checked another report which gave different results.

What do you mean by a good salary? 47k
how long have you been with your current employer? 9 months and was in my last employment for 4 years

Do you use the overdraft every month? Yes, I go into it every month
Do you use the card? is there an ongoing balance on it? Most of the time there is an ongoing balance and some times I pay it off.

How many applications for credit in the last 6months? edit sorry - i've just seen you've said none - in that case why do you think you will be declined if you've not even applied for one recently? Because my credit report hasn't changed since I last applied and my situation hasn't really changed (although my salary is higher), yet I was refused then and expect I will be refused again if I apply now.

I appreciate that I use my overdraft and my credit card each month and that I don't have any savings but in comparrison to other individauls I know I am a very strong candidate for a loan. Why do they get offered credit freely and I get refused?

KingElvis

Using your overdraft every month does your knee caps, in a credit way.

To the bank thant means you're poor at budgeting, over spend and are living beyond your means already.

Tixy

When you say you checked another credit reference agency and it had different results -
which agency - there are 3, experian, equifax and callcredit (now also called noddle)
did it show your information correctly? ie did it show you were on the electoral roll for example?
Did it show any problems / issues?
You need them all to be correct as you don't know which agency a lender will choose to search. Or at least if only 1 is correct you'd need to check that thats the agency your chosen potential lender does use.

I'd suggest ensuring your overdraft was fully paid and not used for a couple of months - on a salary of £47k they'll want to see you can manage on that without having to resort to an overdraft (otherwise they'll wonder how you'll afford repayments).
I'd also pay off the credit card and then use and pay on in full each month.

I'd think that would maximise your chance of being accepted. That said if you've applied for nothing for 6months you could try applying for a loan now. You might want to consider nationwide as they do a soft search option - which will give you an indicative quotation without a full credit search.

pvt

The King has proffered good advice.

By whacking your overdraft every month you're demonstarating you spend every penny you get, and have no surplus cash (otherwise you surely wouldn't go overdrawn). So from a lender's perspective where will the money to repay this £5k loan be coming from?

27col

If you cannot manage on a salary of £47k without resorting regularly to an overdraft, then it suggests that you are a bad money manager. I would think that this is the main reason you are getting turned down for a loan.
As for your friends who have managed to borrow £1000's, why do you seem to think that that is a good thing.

MoneyCat_2

27col wrote: »

If you cannot manage on a salary of £47k without resorting regularly to an overdraft, then it suggests that you are a bad money manager. I would think that this is the main reason you are getting turned down for a loan.
As for your friends who have managed to borrow £1000's, why do you seem to think that that is a good thing.

Thanks for your response.

I certainly don't think it's a good thing and I wouldn't want to be in their position. In fact I think it's ridiculous that someone who is constantly in and out of employment and has a bad credit history can get £1,000s worth of credit and I have an impeccable credit history and get refused! The system just seems so wrong, whether I go into my overdraft or not.