Refused credit

jewls

Hi

We have been refused credit when applying for a personal loan

I have just looked at our files and can't understand my hubby's as everything is showing up to date. No red marks

Mine has showed up red marks and had forgot to pay a catalogue but have it set on direct debit now so last three months is ok

Just wondering if it could be down to the fact that we pay the minimum payments on credit cards we have two

Thanks for any help

Cheers

gb12345

It could be down to something as simple as the amount of credit that you already have available to you, added to the amount of the loan being too high compared to your income.

Additionally, the minimum payments to the credit cards could put some lenders off as they will possibly see it as a sign that you are struggling to pay the debts you already have.

What exactly are the red marks on your history? Is it just the late payment or are there other problems?

DCFC79

Could be what you asked for in relation to your salary

jewls

Late payments

We do not have a lot of debt. Mortgage 6000 just paid of a loan attached to the house 5700 other bits and bobs 4000

Red marks are late payments

Cheers

jewls

My husband has a business our van is 54plate bought new and he is worried it won't last long we just thought we would apply to see and no luck

imoneyop

Is the 4000 the total credit limits of your cards or just what you owe on them? Lenders will assess the total credit available to you when they underwrite the new loan.

Another factor could also be due to your husband being self-employed - the particular lender you applied to might just not like S/E applicants.

You don't say who you applied to, but trying your own bank might be an option (assuming it wasn't them who turned you down) or you could see if the garage you want to buy the new van from offer business financing as that should be easier to get as it is secured on the vehicle.

jewls

The card limit is 8400

My husbands bank gave him a loan back in 2008 for 15000 for the business it has just been finished no payments missed so he went to them and was offered one but the interest was a bit high

He looked online and applied for one with a better rate and was refused, but last year he was in a department store and was offered a store card so he got that and pays of the balance due the following month in full

It's just loans apparently?

gb12345

jewls wrote: »

The card limit is 8400

My husbands bank gave him a loan back in 2008 for 15000 for the business it has just been finished no payments missed so he went to them and was offered one but the interest was a bit high

He looked online and applied for one with a better rate and was refused, but last year he was in a department store and was offered a store card so he got that and pays of the balance due the following month in full

It's just loans apparently?

Back in 2008 the banks were throwing money at people, now they are a lot more strict with their lending criteria.

How much was he looking to borrow and how high was the APR from his bank?

I agree with Spyros's comment about not to keep applying though - multiple searches on his credit history will make him look desparate and result in more rejections.

jewls

Hi

Is there anything we can do to improve it ?

DCFC79

jewls wrote: »

Hi

Is there anything we can do to improve it ?

Improve what ?

His credit history, just run it really well, don't let it go into minus figures.

jewls

My credit rating