General Loan Advice

SK5

I'm fairly unfamiliar with loans and applying for them, having never needed one before and so was just wanting to get some general advice.I may just be being naive but I'm trying to work out how I can succesfully apply for a loan and wondered if anyone could give advice.
I have a couple of credit cards with small balances on that I am wanting to clear, and then was looking to borrow some further money as I am moving house in the next few months and need money for furnishing. I checked my credit history and score online before applying and as far as I can tell by normal standards my score and history is good so I didnt think there would be an issue. I applied with Sainsburys online who told me my loan had been approved in principle but they needed further info from me. After speaking to them on the phone they then declined my loan. THey were unable to offer me any info as to why, leaving me a bit confused.
I am aware this may be a stupid question but could it be something as simple as my age (I'm 24) or are there other factors that I am completely ignorant of and if so is there anything I can do to improve my chances of being approved?
THanks guys

DCFC79

SK5 wrote: »

I'm fairly unfamiliar with loans and applying for them, having never needed one before and so was just wanting to get some general advice.I may just be being naive but I'm trying to work out how I can succesfully apply for a loan and wondered if anyone could give advice.
I have a couple of credit cards with small balances on that I am wanting to clear, and then was looking to borrow some further money as I am moving house in the next few months and need money for furnishing. I checked my credit history and score online before applying and as far as I can tell by normal standards my score and history is good so I didnt think there would be an issue. I applied with Sainsburys online who told me my loan had been approved in principle but they needed further info from me. After speaking to them on the phone they then declined my loan. THey were unable to offer me any info as to why, leaving me a bit confused.
I am aware this may be a stupid question but could it be something as simple as my age (I'm 24) or are there other factors that I am completely ignorant of and if so is there anything I can do to improve my chances of being approved?
THanks guys

If an application is approved, its based on various factors like :

How much your asking for
Your salary - this and ^^ are interlinked, a 50% income to debt ratio is applied (cant borrow more than half of your salary)
Maybe how long you have been in your job/even if you have 1
Any other debts/loans/ available credit you have

Not quite sure on your age but wouldn't have thought it would be an issue.

The fact your credit history is good is irrelevant as each lender has they're own scoring system so 1 lender in this case Sainsburys said no another lender may well say yes.

dresdendave

SK5 wrote: »

I'm fairly unfamiliar with loans and applying for them, having never needed one before and so was just wanting to get some general advice.

You still don't need one.

SK5 wrote: »

I have a couple of credit cards with small balances on that I am wanting to clear, and then was looking to borrow some further money as I am moving house in the next few months and need money for furnishing.
THanks guys

Borrowing more money to pay off existing debts rarely works.

There are plenty of places where you can get second hand furnitue and appliances for free. Furnish your house this way and then save up and replace gradually with new items if required. Far better than lumbering yourself with debt.

19lottie82

I can't agree more with dresdendave. You don't need a loan here....

A better plan would be

1) Tranfer your CC debt on to one card with a 0% APR introduction rate, then pay it off. You need to be disciplined tho, cut up the old cards as soon as the balance has been transferred and make sure you pay the new one off, rather than running it up

2) Beg borrow or steal stuff for your new place and replace it bit by bit when you have the cash.
Gumtree is fantastic for finding great bargains. People are always selling stuff for hardly anything, just because they want rid of ir to make way for new furniture.

Your reasons for wanting a loan aren't worth saddling yourself with more debt, trust me. You're only 22, don't get in to the cycle of debt when you don't have to!

Please stay away from this path, if you don't you'll look back in ten years and wish that you had.