If Loan/Finance is rejected

Powka

Hey,

I'm considering of buying something on finance option, and I'm not sure if I'm going to be approved or not. I'm not a home owner, and my yearly income is low, but I had loans/finance taken out before and payed them all in less than a year without any delays, etc.

If my loan/finance request gets rejected, does that leave some kind of mark on my credit? Will that lower my chances of getting a smaller loan or asking for it from a different source?

Thanks!

DCFC79

Maybe have a read up on credit history and can affect it.

How low is your income ?
What other commitments do you have eg rent, bills etc ?

Apples2

Your credit file will show that a search has been conducted, it won't say if it was a rejection.

a couple of searches shouldn't matter much but have more than two in a short space if time will lead to more rejections or a higher APR if accepted.

Powka

DCFC79 wrote: »

Maybe have a read up on credit history and can affect it.

How low is your income ?
What other commitments do you have eg rent, bills etc ?

It's 17000pa. I have just the standard commitments of rent + bills, and nothing else. I've had a finance taken out less than a year ago for 1,200 GBP and paid it full in less than 5 months without any delays. The company BestSavvi, I think, said that they update the credit history from 30 to 90 days, so I'm waiting until that period passes before applying for another finance option (but this time I need three times the amount).

Apples2 wrote: »

Your credit file will show that a search has been conducted, it won't say if it was a rejection.

a couple of searches shouldn't matter much but have more than two in a short space if time will lead to more rejections or a higher APR if accepted.

So in case the finance/loan has been taken, whether it was a success or a rejection, other companies will only see the that the search was conducted, but nothing else?

Because I had no problem taking out my first loan with only 6 months of being employed, but then when I paid it in full and wanted to take out another one for the same amount, I was rejected everywhere. So could it be that there was a mark on my credit history, saying that I'm currently paying monthly installments (because it hasn't been updated yet), and even if there are no delays that's why other companies rejected me?