Declined loan from sainsburys, not sure next step

Rick_1138

Hi folks.

I am in the process of buying a new (second hand) car.

I have paid off the outstanding balance on a loan i had for my old car (loan through tesco).

The woman at tesco told me i cant apply for another loan through tesco for 8 days as it shows on their system as me having 2 loans through them. However she told me after i had paid that i could have extended my current loan...ah well.

As i have a deposit on the car to hold it i looked at other lenders.

I have had 4 main loans in my life, all from either RBS or Tesco, never been declined, never missed a payment and all was well.

So i looked at poss lenders and sainsburys were offering the same rate as tesco.

So i went through the app process, all seemed fine until i pressed submit, i got a technical fault page, saying nothing had been submitted or saved etc.

So i re-did the application on my main PC just incase was the ipad, it went in fine and was pretty much instantly declined.

The loan is for £13k over 4 years for a car and a small amount of debt clearance (£2k), i earn 31kpa and have 1 other loan (6k over 3 years 0%) and have 6.5k in credit cards which will be cleared from this loan and cash from previous car sale.

I have no other major dependancies or outgoings, bar a small rent (still with parents but moving out next month or so but pay rent to them and looking to pay the same in new house with GF so outgoings wont change)

I am 30, will be 31 in june.

What i am worried about is i have read online that sainsbugs are bad for declining loans with folk with good credit, i checked and mine is good on 2 sites such as equifax. I am hesitant to apply again with say RBS or M&S incase i mess up my credit risk rating, or if sainsburys website may have tried to log 2 attempts to apply with the tech issue.

1 thought i had was to phone my banks loan dept and enquire about possiility of a £12-13k loan in my circumstances and see if they would take that risk or if the amount is the main stumbling block.

Can anyone tell me if a £12-13k loan in my situation is unusual?

many thanks folks

R_P_W

So you already have debts of 14.5k on a salary of 31k and you are applying for another 13k!?

Do you not see what the problem is?

CLAPTON

4 major loans is a short life is excessive

you have an income of 30k

your debts are
-2k
-6.5k

plus your old loan may still be showing on your credit files

and you want to borrow 13k ?

so total debt looks like 21.5k (or more) on a salary of only 30k

doesn't look good

maybe credit your credit files and see what they show

dgtazzman

Currently you have:

6k loan
6.5k available credit card balance (doesn't matter if it's cleared or not)

Total: 12.5k

You want to add another 13k to that, making a total of 25.5k (available) credit on a 31k a year income.

I think you can see why that would be declined, 50% of your gross income is the maximum you're likely to get these days, especially since you don't have the security of your own home.

Also, 10k for a second hand car? I'm sure you can do better than that, was just looking on Autotrader earlier out of interest and found some decent looking 5 year old cars for 3k. Up that to around the 5k mark and you're already looking at 3 year old cars.

brokeinlondon

you already have a high loan-to-salary ratio, and your tesco loan is probably still showing on your credit report as well. that's why you would have been declined.

they won't know that you were going to use the loan to pay off other debts, and a computer certainly won't take it into account either when it credit checks you.

Rick_1138

There is no need to be an !!!! with the reply, and i dont have 14.5k of debt, the 6k loan is now at £4k, and the £6.5k of credit card debt is now £3.5k as of friday (only paid off the chunk today) so i have £7k of debt before i take out the loan.

I was wondering if it was simply the amount i am requesting or as i have read online after the fact, sainsburys seem to be very odd in their approval method, with some folk getting denied when they seem good bets.

Also my previous loan 2 years ago for £7k over 3 years i had closer to £8k on a credit cards and a bike loan at 4k and there was no issue and i was earning £27k.

Sorry for shouting at the start i just didnt find RPW's tone helpfull, im not thick i am aware £13k is a lot but given what i have had previously the last 2-3 years its not that different to what i have been paying for a while.

I didnt want to go blundering about asking for more loan attemots and get declined for some odd reason other than the cash sum.

EDIT - its not 4 loans i have had 3 in my life, £2k over 3 years (first loan), £4k for bike finance over 3 years, and my current loan i just paid off early, £7k over 3 years)

Thrugelmir

Rick_1138 wrote: »

Also my previous loan 2 years ago for £7k over 3 years i had closer to £8k on a credit cards and a bike loan at 4k and there was no issue and i was earning £27k.

.

Then you've missed the fact that the world has changed. Being in debt is no longer in vogue. The lunatics are no longer running the asylum. The bankers are back in town.

Rick_1138

ah well apparently i am just a stupid idiot coming here asking for a possible bit of advice incase it was an odd anomoly, but apparently no, i am just a stupid pauper who should know better than to try and finance something where i have never had any issues in the recent past.

I am aware financial regulation has tightened up, and its why i wasnt applying for loan after loan, but after reading up online about sainsburys apparently lending to folk who got loans elsewhere easily i was worried i may have made my credit score worse and was looking for some advice on this, apparently however its just because i have no clue about what has happened in the world over the last 5 years.

silly me. This forum used to offer helpful advice rather than just point and laugh.

R_P_W

Yeah obviously my mistake.....not knowing when you say 6k you mean 4k and 6.5k means 3.5k....silly me!

Either way if u ask for 13k loan on top it is more than 50% of your salary.

I'm not having a go, when in my early twenties I had cards and a loan to.....but came to the realisation that constantly having to borrow isn't good!

CLAPTON

Rick_1138 wrote: »

There is no need to be an !!!! with the reply, and i dont have 14.5k of debt, the 6k loan is now at £4k, and the £6.5k of credit card debt is now £3.5k as of friday (only paid off the chunk today) so i have £7k of debt before i take out the loan.

I was wondering if it was simply the amount i am requesting or as i have read online after the fact, sainsburys seem to be very odd in their approval method, with some folk getting denied when they seem good bets.

Also my previous loan 2 years ago for £7k over 3 years i had closer to £8k on a credit cards and a bike loan at 4k and there was no issue and i was earning £27k.

Sorry for shouting at the start i just didnt find RPW's tone helpfull, im not thick i am aware £13k is a lot but given what i have had previously the last 2-3 years its not that different to what i have been paying for a while.

I didnt want to go blundering about asking for more loan attemots and get declined for some odd reason other than the cash sum.

EDIT - its not 4 loans i have had 3 in my life, £2k over 3 years (first loan), £4k for bike finance over 3 years, and my current loan i just paid off early, £7k over 3 years)

you are a little addicted to debt : maybe rethink your approach

maybe learn to write English so we can understand what your debt situation is

maybe learn to thank people for trying to help

maybe learn to read what they write

maybe check your credit files as they is what potential lenders see

Rick_1138

I was going to thank people for helping, however the first reply i saw was RPW's response, and others had responded by the time i had typed my reply, so it looked like i was responding to all the replies.

At least its not a wall of text!

Why do you say i am addicted to debt? Obviously i know i have higher debt than i want (credit cards specifically, but i have got this down from almost £10k 4 years ago to just on 4K as of today. However i have never taken out 2 loans at once until i got my bike last year, until then i only ever had one loan at a time.

I have always been told i am good with my finances for not just getting everything on 'tick' or buying PCP finance etc.

This loan is for a car i will have for a while and ensure i can finally cut up my credit cards.

Regarding my credit files, i checked on equifax (this website advised as a good idea), apparently i am a good risk, all green, and no missed payments, on electoral register, no dependencies etc, thats why i was confused to be refused instantly, also i found the sainsburys loan application questions a bit flimsy, Tesco ask for much more info.

i apologise for being short with my previous post, was just a bit angry\upset that i had been declined as it makes me look like i cant pay or haven't paid, when i have never missed a payment for anything in my life.