Chance of getting a £7,500 £10,000 loan this time next year?

FTBSOS

Hi there, I am 19, soon to be 20 at the end of this year. I stupidly applied for a 13k loan with nationwide, thinking i would get it, and got rejected, along with another lender carloan4u.

I got no late/missed payments/ccj's/defaults I'm on the electoll roll.

My credit history is not bad at all, but there's around credit 10 searches on my file.

I have a nationwide credit card - £2400 limit.
Barclaycard initial - £800 limit
llyods tsb avios duo £1000 limit
Vanquis credit card - £300 limit
Capital one secure card - £400 limit

total £4900 limit combined on all cards.

I also have three sim only contracts

and some new (three separate credit agreements with DFS setup)

I earn £28k a year. Based on the above info provided, what can I do to improve my chances next year of getting accepted?

Today I am closing down two of three phone contracts, next year, i'm getting rid of vanquis and capital one. The DFS agreements should also be settled too, as I only took it out for 12 months and total credit for that was just over 1k.

I guess nationwide though it would be too much for me to handle if I were to take out a size of this loan? Is it due to my age?

Nationwide said when I applied over the phone that it was due to taking info on credit file into account, and current account conduct. I have done nothing bad apart from having a few bounced direct debits coming out, I haven't been charged, wasn't my fault it was my other bank's problem on their side.

The reason why I wanted a 13k loan is because those who are a fan of cars, I absolutely adore the MK5 golf r32 and I want one really badly, I am prepared for the what the insurance be on this.

I can easily save up and this time next year buy it outright, which I am currently saving but I am planning again to try and get a mortgage so that money will be used as deposit.

Cycrow

i would say a 10k would be unlikely with your current credit and salary.
sounds like you already have over 5k credit, so ideally, u'll need at least 30k salary for the 10k loan

how recent are these searchs on your file, if they are within the last 6 months, then this will also reduces your chances.

also, when were the various accounts taken out, the credit cards, loans, etc?
any of those in the last 6 months, and this again will reduces your chances

[Deleted User]

FTBSOS wrote: »

I guess nationwide though it would be too much for me to handle if I were to take out a size of this loan? Is it due to my age?

Not directly your age, but the lack of credit history that a 19 year old has will be a major issue. Plus the size of the loan in relation to your income and your existing lines, would place you as higher risk.

Personally I'd save for it (or actually, buy something cheaper and focus on the mortgage). If the car is that important to you, then the mortgage will have to wait.

FTBSOS

Cycrow wrote: »

i would say a 10k would be unlikely with your current credit and salary.
sounds like you already have over 5k credit, so ideally, u'll need at least 30k salary for the 10k loan

how recent are these searchs on your file, if they are within the last 6 months, then this will also reduces your chances.

also, when were the various accounts taken out, the credit cards, loans, etc?
any of those in the last 6 months, and this again will reduces your chances

most of the searches were recent within 6 months of each other.

again, same with nationwide, llyods, they were taken out in the ladt couple of months.

I think i know what to do anyway to vastly increase my chances of getting that loan. Close down 2 credit cards, keep credit usage low, and STOP applying for credit!

Cycrow

i wouldn't apply for any credit now for at least 6 months, possibly even a year.

new accounts and lots of searches are not a good sign for lenders, they want to see stable account history over time

even after a year, i think a 13k might be a struggle with your current salary

19lottie82

Bounced direct debits? So do these show as late payments on your credit report? If so you may be peeing in the wind I'm afraid.

Personally I think you're mad to consider getting in to so much debt for a second hand car (not to mention the insurance) that is a potential money pit, but I'm sure you've been told this before. Im Sure you'll realise this three / four / five years down the line when you're still paying off the loan, if you get one.

How much will what you borrow out you in total?

Sorry to sound patronising but you'll realise I was right at some point!

FTBSOS

19lottie82 wrote: »

Bounced direct debits? So do these show as late payments on your credit report? If so you may be peeing in the wind I'm afraid.

Personally I think you're mad to consider getting in to so much debt for a second hand car (not to mention the insurance) that is a potential money pit, but I'm sure you've been told this before. Im Sure you'll realise this three / four / five years down the line when you're still paying off the loan, if you get one.

How much will what you borrow out you in total?

Sorry to sound patronising but you'll realise I was right at some point!

I am very lucky, no missed payments. tbh, i don't think i will need to borrow 13k. most likely 8k this time next year.

I really want this car, and have so for a long time, I plan on keeping the car for around 3 - 4 years, perhaps more..

I'd rather do the above then splash out 20k on a car on fiance with it being worth max 14k after 2 years.

HiToAll

What about the 17K loan you tried for already, or the mortgages you have been declined for.
The fluctuating salary you seem to have, and the £1K you spend in the coop every month.

read the OPs other threads for tales of woe and tales that Jackanory would be proud of.

19lottie82

Yeah things don't add up here, reading the OPs other threads!

In some threads he is 19, others 20.

In a thread a couple of months old he says he was working in a supermarket, but was applying for a job as an admin assistant (yet was buying a £160k house.) now he is on a £28k salary. Hmmmmmm

HiToAll

More holes than Swiss cheese. Not forgetting going to the shops when other half in hospital giving birth to redeem some UKASH vouchers.

grandplonker

Well, I quite enjoy Swiss cheese, so let's get down to business.

You need to simplify your money setup here. Let's start with age. Lenders want good credit history. It starts from age 18 and stays on your file 6 years. That means, until you're 24 at least lenders will legally discriminate against you because of your age. They will always know your age and treat you like a 50 year old who regularly defaults on their mortgage. Zopa won't lend to you and there's nothing you can do about it.

The only reason for having five credit cards would be to collect them. MSE recommends 2-4. I'm 25 (ish), had no cards until this year. My total credit limit has increased from £250-£3,000. Focus on having two cards and every three months apply to have the limits increased. Never default on any of them. Forget about next year, cancel them now. 'Already too much credit' is a frequent reason for loan rejects.

Now, about phones. To use three of them simultaneously would involve listening to two different people one ear each (an achievement in itself) and talking to a third via the remaining phone. Get your phone contracts down to one only. A lender will have an easier time getting their head round your outgoings if your bank statement looks rather more normal.

Now, about the loan in the first place. Seriously, do you really need it? A 19 year old on a £28k salary I wouldn't think so. You could probably save the money quickly. Switch your bank to First Direct and put it into their 6% ISA, best you can get.

About the car, I'll quote you not judge you. You said you want it. By your own admission you don't need it. You could also have fun buying air guitars on ebay with it. No, seriously. A SmartCar second hand on Gumtree is £6,000 and it'll be fine for two. Sell it in a few years' time when you've saved more cash then upgrade. You'll also avoid some of the interest on a loan.

Look into insurance. You might end up quoting Jeremy Clarkson 'I didn't know numbers went this high.'