Declined loan from sainsburys, not sure next step

CLAPTON

what do all three of your credit files say about your debts?

Rick_1138

I have only got Equifax's report at the moment, still to do the other 2.

Thrugelmir

Rick_1138 wrote: »

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.

History doesn't matter. You are only as good as your next pay cheque. Any number of events can turn your life upside down.

Listen to the words of wisdom on this forum. They are said to help you. No one is laughing. Finance is a serious business. Personally I blame poor education.

R_P_W

I wasn't being a '!!!!' In my response.

You may very well have never missed a payment. But you need to get out of the habit of borrowing. So your 31 soon - thinking of maybe buying a house in next couple of years?

Can you still service debt if you lost your job or had to take a reduced income?

Rick_1138

I understand what you are saying.

What has me confused is i am a better bet now than i have been, more disposable income, lowered debt (closed out last loan and reduced credit card by £3k, though i realise this may not show up yet, hopefully this will be updated in my credit info soon).

I am looking at calling my banks Loan dept to enquire about a (possible) loan of £11k say and explain my income and outgoings to see if this would be something they would offer or say no to, the guy i spoke to at RBS 24 hour banking was very helpful and said this isnt an application, just info on the banks policy for my sort of situation.

Hopefully this will give me an idea if i am looking at too much cash or if i would be accepted fine.

The stupid thing is i am looking at saving for a house deposit over the next 2 years with my GF and we have planned this with our current outgoings (this includes planned loan) and friends are amazed that i dont take a loan out to pay the deposit......i was speechless when they didnt understand why that is realy stupid and i believe illegal.

Rick_1138

R_P_W wrote: »

I wasn't being a '!!!!' In my response.

You may very well have never missed a payment. But you need to get out of the habit of borrowing. So your 31 soon - thinking of maybe buying a house in next couple of years?

Can you still service debt if you lost your job or had to take a reduced income?

I did apologise, i was in a bad frame of mind, i was terrified i had just tanked my credit history due to one application.

However i have never understood the attitude that if i lost my job could i pay back loans etc, if i had a mortgage, and lost my job, there is no way i could make payments (unless benefits cover this but i have never taken any). I am not taking out finance i cant afford, i have over £500 a month disposable income after rent, bills, fuel, payments, D\D's etc.

The only reason i dont chuck heaps into my credit cards debt a month is because i did that once before when i was younger and was paying too much to try and get rid of my debt but then having to use the card to cover the shortfall.

I learned a harsh lesson about credit cards when i was about 22, which i am still clearing, hence where i am now and almost cleared, this was the plan, get a car and a bit more on top to have one payment and cut up all my cards, seemed to be a more sensible option.

That is why i was taking the loan, i haven't put anything on my credit cards bar £100 2 months ago, in over a year, i don't know the pin's for them bar a barclaycard that has a £3k limit. The whole point of this was to have 2 major loan outgoings and that is it rather than the loan and 3 cards, if that makes sense.

R_P_W

Well it isn't illegal. But you have to say where you got deposit from and if you say it's borrowed then your stuffed basically.

Best thing is don't borrow anymore and pay as much off your debts ascquickly as you can, then you can start saving for a deposit on a property. Lenders will take debts into consideration for mortgage

R_P_W

If you have a mortgage then you need to have a plan for paying it if you lost your job, you can't just not pay it! Either some form of payment insurance or you need to have a few months outgoings in savings.

Hence not borrowing more money now! Budget what you can afford to pay off your debt and pay that off the cards. Using cards and paying in full each month will be good for your credit history.

R_P_W

Do u still have your old car?

YorkshireBoy

Rick_1138 wrote: »

I learned a harsh lesson about credit cards when i was about 22

What you should have learned a harsh lesson about was DEBT...full stop! It matters not whether it's a credit card, loan, or bank overdraft. Think of it as DEBT.

You're wanting to be in the same situation now...some 8-9 years later...at an age where you could/should have been paying a mortgage for 6 years (or 9 as I was at your age) with a foot on the property ladder...not considering consolidating and financing an unnecessary depreciating asset.

this was the plan, get a car and a bit more on top to have one payment and cut up all my cards, seemed to be a more sensible option.

The "sensible option" would be to juggle and shuffle your credit card debts to keep them at 0%* (by paying approx 1-2% APR in BT fees), whilst buying a car for considerably less than you're proposing, and saving for the house deposit. Now that's "sensible" (but then I'm old enough to be your father so you may not think so!).


* As it is, you're proposing turning 0%, or potential 0%, debt (1-2% APR with the fees) into circa 7.9% APR debt on a loan. That's silly!