refused once...will i be refused by others?

mcgoobs

Hi all, I recently had a unsecured loan application declined by Marks and Spencers. I currently have a loan with them and was looking to settle it early and also pay off my credit card. I have done all i can to improve my credit rating (which wasn't too bad anyway). I am not in a position to pay a monthly fee for a credit report and have exhausted all free trials so have been using Noddle (the free one!) and it has given me a rating of 4 out of 5. Have Marks and Spencers refused me as the new loan would be at a lower interest rate? I am wondering if different lenders have different criteria for lending and is it worth trying another lender?
Many thanks in advance :-)

Browntoa

just remember that each search shows up on your credit record....multiple searches does not look good

Cycrow

Different lenders will have different criteria, so being refused by one doesn't mean you will definatly get refused by another, but it depends on the reason you were refused

Maybe its a problem with your amount of credit.

how much credit do you currently have available, including the loan, credit cards and overdrafts ?
What size of loan was you trying to get, and how much do you currently earn?

19lottie82

If you're not in a position to pay for a credit report, how will you afford to repay a loan?

AFK_Matrix

Lottie makes a good point as a credit report cost £2 for goodness sake!! If you can't afford that then your not getting another loan.

Tixy

Did you just do an online application with M&S? or did you contact them and explain you wanted to pay off the existing loan you have with them?
They won't have refused you because of it being at a lower APR no. If they had accepted your application then would then have let you know at what APR they would have accepted you (which could be more, less or the same as the current loan).

They may have declined you as they felt that you could not afford the monthly payments on the new loan and on the existing loan?

Whilst different lenders do have different criteria its usually worth trying to work out why you might have been refused first before you apply with other lenders.

mcgoobs

I have done the £2 report (which does not actually tell you your credit score) i was meaning i cannot afford a monthly subscription for a credit report. As i stated in my original post, i am currently paying a loan and on top of that i also pay car HP, by applying for another loan to consolidate them it would hopefully halve the current payments and make life easier. I was simply asking for advice and tried to keep my original question and information as succinct as possible, I was not expecting to be judged and given a hard time! Thankyou to the kind people who gave sound advice. For those who did reply in an unkind manner, why spend your time reading genuine requests for advice and help and then (after obviously not reading them properly) ridicule them? Surely the whole point of this site and forum is to to try and help people by sharing experiences and advice "for goodness sake".

mcgoobs

@Tixy, yes i did phone M&S and they were aware of my plan to consolidate. I suspect it may be the amount i requested, although when i got the original loan it was for the same amount and my work status is the same. I have just realised my credit card and next account had recently increased my credit limits so that also may have had a detrimental affect. I have now dealt with that and hopefully that may help. I think the best thing i can do is wait for the letter of decline and do some more detective work from there. Once again thanks for your help :-)

Tixy

Its really not worth paying for the credit score even if you can afford it. Far better to just see the credit report anyway - as that is what any potential lender will base their decision on, they don't see the score a credit reference agency will sell to you.

How long have you had the existing M&S loan? some lenders won't extend (or refinance) loans within the first year. And a lot of lenders seem to be far less willing to extend loans now than they used to be.

Is there any negative on your credit file? any recent missed payments or overlimits etc?

If the main problem is the credit card have you considered seeing if you can get a 0% balance transfer card to transfer that to?

Another option you could consider would be to try nationwide online loan quote. This uses a soft search so does not leave a credit application mark on your credit file. Though obviously if you look to apply for a loan with any other lender than your existing one - they'll be looking to see if they think your income is sufficient to service the new loan on top of all your existing debt commitments.

skintandscared_2

Please note that when loan companies review your application, they take into account your income and all your current debt commitments, even if the purpose is consolidation. You might struggle to get a further loan if the loan amount PLUS your current credit commitment come to more than half your annual salary.

PeppaPig555

I really don't know why most threads I read on here have at least one person replying with an unnecessary judgement of someone asking for advice.

If I was you I'd probably try one more company - A&L accepted my application about 6 years ago when I didn't think they would so worth trying Santander maybe? Good luck!