Taking a Loan

okimgone

I have been declined from Sainburys bank, I have an current account with halifax for a few months and have had an easy cash account with halifax for about a year and a half.

Every month on average a thousand has gone through my account. Recently started a job in November 2012 to fund a business idea I want to pursue in africa which in my eyes would make me on a 'doctors wage' on 40-50K investment profit.

I was planning on taking a loan for maybe 2-3K, paying it back in a few months then taking a bigger loan for say 6-7K and then taking a 10K loan hopefully.

What are your thoughts on this?

OneLife_OneShot

You have only been in the job a month. Thats why.

DCFC79

okimgone wrote: »

I have been declined from Sainburys bank, I have an current account with halifax for a few months and have had an easy cash account with halifax for about a year and a half.

Every month on average a thousand has gone through my account. Recently started a job in November 2012 to fund a business idea I want to pursue in africa which in my eyes would make me on a 'doctors wage' on 40-50K investment profit.

I was planning on taking a loan for maybe 2-3K, paying it back in a few months then taking a bigger loan for say 6-7K and then taking a 10K loan hopefully.

What are your thoughts on this?

Tried your own bank

Length of time in the job is the main issue, banks like to see stability.

okimgone

DCFC79 wrote: »

Tried your own bank

Length of time in the job is the main issue, banks like to see stability.

Okey thats fair play, is taking an item on finance the same as 'loaning' the item? Maybe I could take a bicycle (700 pounds) over a 12 month period (6 months interest free) and say pay it off within the first 3 months?
Would that not make me a loan departments dream? Earning + marks on my credit rating.

There is many things you can take on finance, would this work?

DCFC79

okimgone wrote: »

Okey thats fair play, is taking an item on finance the same as 'loaning' the item? Maybe I could take a bicycle (700 pounds) over a 12 month period (6 months interest free) and say pay it off within the first 3 months?
Would that not make me a loan departments dream? Earning + marks on my credit rating.

There is many things you can take on finance, would this work?

Not sure but im sure someone who would know can provide an answer soon.

Apples2

okimgone wrote: »

Would that not make me a loan departments dream? Earning + marks on my credit rating.

I wouldn't go that far...

Lots of credit agreements, all managed well will help bolster your credit file, which is a good thing.

You will get no bonus points for clearing a 6 Month agreement in 3 Months but whatever you do , do NOT wait until the final week to clear it (just in case of any mishaps with the payment).

Short time in employment is a bad thing, you may still be in your probationary period so could lose your job in an instant. Your job would not be considered stable.

Use a credit card often but make sure you clear the whole balance at month end when it is due, NEVER make a minimum payment. If you have to, add £1 onto the minimum payment.

Any debt you carry is a bad thing, it will reduce your likelihood of acceptance. Never carry a debt over from one month to the next.

CLAPTON

are you a UK national
how old are you
what is your income
are you on the electoral roll
what do your credit files say about you

cajef

okimgone wrote: »

Recently started a job in November 2012 to fund a business idea I want to pursue in africa which in my eyes would make me on a 'doctors wage' on 40-50K investment profit.

What are your thoughts on this?

Not by any chance related to anyone in Nigeria are you, your idea sounds as though you may be.:D

Brains64

DCFC79 wrote: »

Tried your own bank

Length of time in the job is the main issue, banks like to see stability.

conisme wrote: »

You have only been in the job a month. Thats why.

Yes, many mainstream lenders like Sainsbury's will focus on that as part of their criteria for deciding whether to lend to someone or not, they may also consider how long someone has had their bank account for, they see someone who has had an account with the same bank for many years as being likely to be more stable and established than someone that's just opened one a while ago.

Of course, to be fair to the OP, we know that these things don't necessarily prove a peanut and someone in a job for decades with a bank account for as long could just as easily default as someone who got it last week but this is how some of those main lenders see it unfortunately, it's a pain I know and I do wish they'd broaden their criteria a bit more rather than focusing on just one or two things because there must be many perfectly reliable and stable potential borrowers that would be able to repay and yet are being refused just because of this.

The OP might have better luck with some of the lesser high profile lenders than Sainsbury's because they might not focus on that so much and look at other things that will be more positive.