Declined on a Loan

audioeffects

Hi Guys,

Newbie here so be nice!

Let me explain the situation:

I went to get a Credit Card (Student) from NatWest about a year ago - and was declined on the Basis that I was not at the right address on my electoral role. Indeed I was very annoyed as I'd just moved and asked the council to amend this, of which apparently they couldn't until the next canvas annual load (or something). Anyway, I checked my file on Equifax and this was all in green except for the Electoral role. So I asked Equifax to revert it to my previous address until it was loaded onto my file, they duly did this. I've had a loan with NatWest - paid it off in a year, have an Overdraft of £500 which is paid off each month.

Anyway, I tried again to get a credit card - I was again refused, with no real reason. They couldn't explain and asked for me to go back onto Equifax - so I did, everything now in green, Credit Score of 444 (Good) and nothing to point out to me that anything was wrong. I still assumed perhaps it was address and something was up with that. So running out of money for that month due to unforseeable costs - I applied and got a PDL for security. Which I now regret as I've had to take that option a few times, always paid back on or before the deadline.

I then applied for a Credit Card elsewhere (Capital One's Credit Builder) - they accepted within 5 minutes with a limit of £200 (plenty) and I've always paid this off and hardly even use it (I've even forgotten the PIN to it).

Anyway, with no debt, all green credit file - I needed a new car, thought ah! NatWest will surely now accept I have a Credit Card which is always either not used or paid off - maybe, maybe they will accept - declined, and don't know why.

Could anybody offer me advice of perhaps where to go for a Loan - I want it for 12 months as I hate paying out on debt. I'm currently not in debt and have a Credit score of good.

Just to let you know, I am full time employed.

Many Thanks

audioeffects

Tixy

Hi

Having payday loans on your credit file is considered by many high street lenders to be a sign of financial distress and so is likely to make it harder for you to get mainstream credit. That may well be one of the factors that made natwest decline you.

Your credit score or rating by the credit reference agencies isn't a true reflection of whether you are likely to be accepted for credit or not.
Its what is on your credit files that any potential lender will see (different lenders will search different files so you might also want to check your credit reports with experian and noddle as well to see what they show and whether everything on them is correct - e.g the electoral roll data).

Is natwest your main bank account? as well as the information they can see on your credit file they will also have additional information when assessing whether or not they think you can afford the loan repayments (based on the activity on your current account).

What size of loan did you apply for? and how much do you earn?

audioeffects

Hi Tixy,

Many thanks for your reply.

NatWest is my main account - I have a monthly payment of £980 (post-tax) going into my account from work.

I earn just under £13,000.

The loan was for £3000 over a year, I have no outgoings albeit my phone bill.

Tixy

Whilst you say you have no other outgoings presumably you are spending all of your wages of £980 each month?
If so then they may well be concerned as to whether you could afford the repayments on top of your current spending (unless you are saving a few hundred pounds a month currently).

Whilst there may be a reason for this, and areas of spending you can reduce and a reason you needed to resort to payday loans in the past - the bank only see the cold figures and make a risk assessment based on those.

As a long shot you could possibly try appealing the bank decision for an underwriter to look at your application - but its unlikely they would change their mind.

audioeffects

Hi Tixy,

The only reason was because I was part time - I was earning half that for a couple of years whilst at Uni, but I've worked with the same company for 3+ years so my outgoings (Petrol, food) as I live on my own was alot and wages didnt always cover.

NatWest are literally the most useless, I've asked for advice but they basically say the computer says no. Also, you hear people in more unfortunate circumstances - badly in debt still being able to secure a loan. If NatWest know I can pay a loan off from a year, they surely could acknowledge I am able to finance a loan, or overdraft (at the very least).

Is there any other lender at all which may take this into consideration?

Loopgames

Don't natwest offer a graduate ac with £2k interest free overdraft for first yr anymore?

audioeffects

Probably, but NatWest have declined me on an Overdraft anyway - even though I have one now..

DCFC79

You say you pay your OD off each month, surely this can't be good in terms of managing your money, living in an OD isn't good.

audioeffects

Well it was my only option whist working part time.. Unless I got a credit card, which I couldn't.

Loopgames

audioeffects wrote: »

Probably, but NatWest have declined me on an Overdraft anyway - even though I have one now..

I assumed that the student ac turns into a graduate ac with the overdraft thrown in automatically after you graduate, they must have changed the process.

audioeffects

I assume so, thanks for the suggestion though loopgames.