Help please re refused loan

Diana_Prince

Hi

I have been trying to get a loan as am in need of a new car. However I was rejected by my bank and by a car finance company. I have checked my credit file and am unsure why I was refused.

All accounts are 'green' and payments have been made on time. I owe £5000 on cards and that's it. Am on the electoral roll.

It says my file has been searched 6 times in 6 months, would this be why??

Please help!

BugsyBrowne

Diana_Prince wrote: »

Hi

I have been trying to get a loan as am in need of a new car. However I was rejected by my bank and by a car finance company. I have checked my credit file and am unsure why I was refused.

All accounts are 'green' and payments have been made on time. I owe £5000 on cards and that's it. Am on the electoral roll.

It says my file has been searched 6 times in 6 months, would this be why??

Please help!

6 searches in 6 months is a lot of searches and defiantly looks negative to a lender.

CLAPTON

what do you earn
how much were you trying to borrow

chanz4

whats your income?

Diana_Prince

Sorry I meant to put that!! £17,253 and a loan of £5k

CLAPTON

so your total debt will be 5k+5k =10K so over half your annual income

that would generally be seen as too high : think a max of debt to salary of 50%

maybe think about something costing a couple of grand max

DCFC79

Could be 2 reasons why you were turned down, could be the 6 searches in 6 months or/and the fact your wanting to borrow £5kplus your original debt of £5k makes £10k which is as clapton says more than half of your income.

BugsyBrowne

Remember this time last year your credit report was riddled with defaults and your default has only just come off your file with which you are trying to rebuild your credit with a vanquis & capital one card, now I would say it would be down to lack of good credit history being the reason you've been turned down.

Diana_Prince

consumerism wrote: »

Or maybe the OP's bank happens to be Santander / Barclays who also happen to provide a high proportion of car finance which could mean that unbeknown to the OP they may have applied twice, to the same lender.
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Yes my bank is Santander!! Thanks for all your answers, it helps a lot! Will get saving instead!