Refused loan! Will it help if I....

leev_21

Hi,

I've just been refused finance for a car through Sainsbury's!

I've opened an account on Credit Expert and everything looks fine on there, rating is excellent.

Would I have a better chance of getting finance through a bank I had finance though in the past (within the last 2 years)?

What I'm trying to ask is, If I apply for finance through a bank, will they see I've had finance with them in the past and I settled the debt without any problems?

thanks

Tixy

Did they give you any indication as to why you were declined?

Do you have other existing debts?

Are you trying to borrow a large amount compared to your salary?

leev_21

Tixy wrote: »

Did they give you any indication as to why you were declined?

Do you have other existing debts?

Are you trying to borrow a large amount compared to your salary?

Thanks for your reply.

No, I did ask, but they stated that they cannot or don't hold that type of info.

I asked if I could find out why I got rejected, they said they could put me through to the services they use to check for finance. I then listened to a pre-recorded message saying they use equifax, creditexpert and callcreditcheck.

I do have finance on my current car which ends this weekend. How long would that take to change to 'settled' on my rating?

Are you trying to borrow a large amount compared to your salary?

Not really.

HOMES

Are you trying to get a loan to pay the remaining balance on the finance for the car?

Do you have the funds to pay for the finance without a loan? Family, could lend you?

I might have misread you but, if you need a loan to pay off the finance and you have no other way of getting the money. I would suggest that you apply for a loan to your main bank ASAP, though I think the search with sainsburys would have shown up by now.

leev_21

HOMES wrote: »

Are you trying to get a loan to pay the remaining balance on the finance for the car?

No, my current car is leased and the lease ends this weekend. Trying to get finance for a new (used) car but got rejected.

HOMES

leev_21 wrote: »

No, my current car is leased and the lease ends this weekend. Trying to get finance for a new (used) car but got rejected.

ah ok got you. I would probably hold talks with your bank and see what they say. If you go ahead with your bank but reject you, don't apply to no one else.

You would have to go down the route of financing a car through the car company, and it will probably have a higher interest rate because of the two loan searches.

First of all, most importantly, you should look at your credit report, no missed payments, defaults, are you on the electrol roll? are you associated with anyone, how long lived at address, debt compared to income, employment status, salary. Credit searches, more than 3 in 6 months is not really good.

You need to look at the above, u may find out the reason why u got declined above.

Thrugelmir

Any other outstanding unsecured debt on credit cards or loan finance?

leev_21

Thrugelmir wrote: »

Any other outstanding unsecured debt on credit cards or loan finance?

No credit cards, no other unsecured loads. My last loan finished in Sept 2012. no missed payments.

little_miss_muppet_face

Do sainsburys loans actually approve anyone ? I think the criteria is extremely strict.. Have known a few people over the years who have
All been turned down.

DCFC79

little_miss_muppet_face wrote: »

Do sainsburys loans actually approve anyone ? I think the criteria is extremely strict.. Have known a few people over the years who have
All been turned down.

Yes people do get accepted, as long as its a certain % that get accepted then its all good.

Vikipollard

How much were you asking for and what do you earn?

Just wondering if you were asking for, say, £13k against a salary of £20k, then that would be 65% loan/salary ratio.

Could it just be that you've asked for more than 50% of your income?