Declined loan from sainsburys, not sure next step

Rick_1138

Sort off, its my dad that is buying it as his old car was written off in a no fault accident. I still have the use of it until i sort out a car, however there is a car i have placed a holding deposit on (£100) until i can get loan sorted, the dealer knows this and is happy with this.

However if i cant get a loan, then i can always cancel the sale with the dealer, hopefully get my deposit back and look for something cheaper like a civic or something.

I would assume that after a week or 2 my credit rating\ finance appeal should be better after wiping some £6.5k of my debt off this week, as i need a car but im not buying new and this was something nice to own before wedding, kids....people carriers......(shudder)

YorkshireBoy

Rick_1138 wrote: »

I would assume that after a week or 2 my credit rating\ finance appeal should be better after wiping some £6.5k of my debt off this week

Fastest I've seen is a month. More often it's next statement date/next zero balance statement date plus a month (so up to 2 months). LTSB have taken 3-4 months for me...even after prompting!

Rick_1138

YorkshireBoy wrote: »

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.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!

Thats fair enough, but my life circumstances mean i have not been in a situation where i would have bought a house, girlfriend changes, life plans go awry etc, its only this last year i have found a girl i am happy with and we are moving in together.

My credit cards are 0% but that ends quite soon and i dont want to do another round of card shuffling as that's probably not the best for credit etc.

I have a decent disposable income, i am not scrimping each month to get by, and i am clearing debt well (i sell painted miniature figures on ebay which gives me a good £400 a month as a side income, which has cleared a lot) and taking out £11k on a car which is my main enjoyment in life as i dont spend on much else, dont smoke, drink, have expensive hobbies, so i am saving for a house and am quite frugal. Its just the nicer car i am looking to have and consolidate my various debt into one payment that is only about £50 more a month than my Tesco loan was.
Its not like i am putting £6k down and paying £300 a month on some daft PCP deal where at the end of 3 years i have nowt to show for shoveling some £18k down the drain, which is what a lot of my friends are doing!

I am going to speak to my bank tomorrow and see what their view is on my lending criteria, they may suggest a limit of say £8k, this is helpful so i know to change my plans and scrap the car idea and get something diff and cheaper, take out less cash but still clear cards.

It was the sudden decline from sainsburys and the fear i may have ruined my credit rating, as i don't know how it works to the degree of, say 1 failed application reduces score by lots, or if its okay to have one denied just don't keep applying for more etc. if that makes sense

You-kip

Never missing a Payment in your life on credit cards or loans used to more or less guarantee anyone new credit but where credit scoring has tightened up anyone with a lot of debt compared to their earnings are automatically a higher risk whether a lifetime of no missed payments or not.

Rick_1138

I understand that, i am just trying to see if this means i will be declined just in general now, or if it was the amount plus the length that was the issue. i.e. 13k over for, but 10k over 3 would be accepted.

I know lenders can be a funny bunch about who they accept etc, the issue is i have no way of knowing now if its all pointless asking or if i just got a bad match against their criteria.

Hopefully my bank can offer me some advice and if i would be accepted with them, slightly higher rate but better chance of acceptance.

we will see.

R_P_W

It's up to you, but do everything you can to not borrow anymore money now.

Rick_1138

Well i need a car and we have passed the point of giving the cash back as half of it was used to clear the outstanding loan, so i will need some form of loan, however reducing any old cards i have is ongoing, a post office card i thought i had cancelled just got a new one sent to me, never used it, has about £4k limit but bloody lot never cancelled it even after i wrote in...sigh.

I have now been receiving letters from sainsburys bank saying 'sorry etc' oddly got 2 of them, i bloody hope that glitch didnt apply twice! they are trying to get me to go to something called freedom finance, which looks a touch APR scam tastic, so am leaving well alone.

Hopefully the bank will sort me out, in the end this loan would mean i only have 2 outgoings a month finance wise, my bike and this loan, as cards would be clear. Thats what is so frustrating, i could be down to 2 debts and no cards rather than 1 loan and 3 cards.

The other option is nationwide do the 'soft search' where i can be shown if a i 'might' be accepted and b what my APR is likely to be, this apparently doesnt show up on credit record, unlike the sainsburys one.

Rick_1138

Means nowt i know but the nationwide quote system was much more detailed than the sainsburys one, asked for crdit card, other loans etc, which i put all of it in.

Quote for £11k over 4 years came out at 11.9% which is very high but obviously this isnt set in stone, could be higher or lower if i applied for real, but does show that i was probably not a sainsburys bank ideal client which will have not helped.

Hopefully my bank can give me a good deal of info and see where we are.

Georgiegirl256

Rick_1138 wrote: »

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..

Serious question here....so who do you think IS going to pay the loan say you did lose your job etc? Unless you have payment protection on it, how would you make the repayments?

Rick_1138

Well I have the ability to pay for a few of the months payments, i.e. up to say 6 months. I could sell some things and the like, i dont assume once i had lost my job it would magically be paid. I just meant if you couldnt get work for long term like a year or so, then you would be in trouble, but this is worst case scenario and extremely unlikely, as its not as if i wouldnt be looking for work at all times, and there are methods to help in these circumstances with job seekers etc, though i have never looked into that seriously as never had too, as i have always been in work.

When i said there is no way i could make payments i meant over a long period, of say a year or more, but i dont mean i couldnt make the next months payment, if that makes sense.