Help! Good credit sore never had any debt or credit cards and still can't get a loan

Kaylee26

Hi,
I'm having trouble getting a loan not a very big one just of about £1000 I've never had any debt or credit cards and I'm working. Still I can't seem to get any loans or any kind of credit at all

Clive_Woody

With no previous history of borrowing, banks have no idea how reliable you will be on making repayments and therefore will be reluctant to lend you money.

Have you tried approaching your own bank as they will be able to see how you have managed your current account.

dotdash79

Perhaps you can arrange for an overdraft with your bank?

£1000 isn't a lot for a loan and would be quite high percentage rate to repay.

chrisuren

A loan probably isn't the best way to get a small (In terms of Loans, £1000 is small) loan, speak with the bank see if they'll give you an overdraft on your account.

DCFC79

Can you not save up for it ?

forgotmyname

Credit scores done by the agencies are meaningless. The companies that provide the loans dont calculate your worthyness to pay it back the same.

Kaylee26

Hi thanks for the replies but I've have gone down all these roots and unfortunately we cant save for it as need it ASAP. I'm completely baffled as to why I can't get any credit at all. I've been to my bank and cannot get overdraft or anything else. I guess I'm just one of the unlucky ones

Tixy

Have you got any credit accounts at all?

Such as a phone contract? or insurance or utility bills that are being reported to your credit file?
If you have no accounts at all on your credit reports then you are a totally unknown quantity to a potential lender, they struggle to assess if you are likely to be good at repaying a loan.

Where have you applied for a loan and been turned down by? How many recent credit applications have you made trying to get a loan?

How long do you need the loan for? how much can you afford to repay a month?
Would your employer consider a salary loan/advance?

Kaylee26

I'm only looking for a year tops to repay it. All the utilities come out of my partners bank :-/. I don't have insurance etc I've been working for 12 years so my bank knows I have regular income as its the same job. I've applied at my bank for the loan and today was the 1st time. I can't even get catalogue credit. It's crazy that because I have no debt at all I won't even be considered

Tixy

It sounds like you have looked at your credit file - does it have anything at all in the credit account information section?

So you have applied for a loan with your bank, and applied somewhere else for a catalogue account? Are those the only 2 applications you have made in the last couple of months?

Whilst it won't help you in the short term for this loan it is worth ensuring you build up a credit history in case you want to borrow again in the future. Typically a subprime credit card (repaid in full each month) or a phone contract are good starting products and after 6months of repaying one of these you may find mainstream lenders more willing to lend to you.

Is your partner able to loan you the money? or is your partner able to take out a loan?

Ad86

Unfortunately its the case where as its usually better to have some bad credit than non at all.

I had the same issue, so started with a credit card paying back in full each month etc.