loans declinded, but why

lanceneoman

Hi all.

Right my partner is in a bit of a pickle so to speak.

We have been trying to obtain a loan to purchase a car and do up the babys room.

No matter where we have tried. (her own bank and a bad credit loan company) it gets declined.

She has good history. Full time job and decent money. However the only problem we can see is no being on electoral role. She has a £1000 over-daft but never exceed the planned overdraft limit.

Could the electoral role be the problem? basically the council refuse to add her until february.


thanks all

Thrugelmir

Where's your partner been the past 5 years? Electoral roll history is now a very important factor in the credit granting process.

An overdraft will be scored negatively. As suggests that a single missed payday wil cause financial problems.

Cycrow

the Electoral roll can cause problems.

however, what other credit does she have ?
if its just the overdraft, then a lack of credit history could also be a problem.

also, is she always in the overdraft ? if so, then that looks bad

lanceneoman

yes she is always in it, well most of the time. although it is being repayed. The past 3 year we have moved 3 times due to problems with estate agents etc. .

however a friend of mine had a 6000 over draft , he was always in it and yet he managed to get a 15,000 loan.

she has nothing on credit other than a mobile contract.

she cant even get a payday loan according to the money supermarket smart check, and it seems around the same time as she was taken off the electoral role.

DCFC79

Regarding the electoral roll, the council aren't refusing to add her, people only get added at certain times of the year. I reckon the OD might be the issue, if the lenders see her in the overdraft when she is in a job with a decent salary and are wondering why are they in the overdraft and may see it as not being able to manage her money for example.

lanceneoman

DCFC yes thats correct. Due to this we had to pay an extra £90.00 to add a guarantor when renting.

Nice_Weather_For_Ducks

lanceneoman wrote: »

DCFC yes thats correct. Due to this we had to pay an extra £90.00 to add a guarantor when renting.

Dont ever use (ie take advantage of "guarantors") , if your financial situation worsens they get screwed!!

Monkeyballs

Hi,

Try looking into Credit Unions if you are having problems finding credit, don't go down the PDL route (not that you have suggested you are going to).

I understand that you want to get a motor and do up the babys room but if you can't afford it then make do and save might be a good option? Baby won't mind if he/she doesn't have loads of toys and nice things - somewhere clean, warm and safe will do I apparently spent my first few months of "being" in a drawer before upscaling to a large cardboard box LOL.

MB

lanceneoman

I earn £30,000 a year and my partner earns £15.000.

So its not that we cant afford it, but as i have only just started my new job, we would like to get a loan to pay for the car (like many people) we dont want a pay day loanm it was only a check to see if we can get one or not to try and see whats going on.

just cant see why not. not one default on credit file.

many thanks

lanceneoman

Nice_Weather_For_Ducks wrote: »

Dont ever use (ie take advantage of "guarantors") , if your financial situation worsens they get screwed!!

we had to have a gurantor, otherwise we could get a house, which means my baby would have to live in my moms house. I have already paid 6 months rent off in one go.

tinkerbell28

The fact you earn 45k between you and needed a guarantor and live in the overdraft is one of the main reasons.

With a good salary you're living beyond your means and they see you as a risk.

Councils only update their records once a month. So February would be correct. The first thing you should do when moving in is apply for the ER. As it's important, as you're now finding.

Rentals don't usually ask for a guarantor just because you haven't been on the ER, or 6 months upfront, it's when they worry the rent won't get paid.