personal loan confusion

nniki

Hi,

I am trying to understand how the whole personal loans process works because I am really confused.

I am a EU citizen living in the UK for 2 years and having a full timw permanent position with annual salary 29K.

I have a total of 3K in available credit and currently using the 63%. I m registered in th electroral roll, my credit score is excellent but I have just been rejected by Sainsburry's for a 8K loan.
I would like a loan of 7-8K for my wedding. I dont know if it is relevant but I have a savings account with 3K (not much I know).

With all the above, I was expecting to be accepted but not really! Any ideas?

JamTE

My starting guess would be your credit utilisation of 63%, that's a little high, even though £3k isn't much credit on a £29k salary. The other 'bad' points are the fact you've only been here for 2 years, so I'm assuming you've only had your bank account for 2 years as well. Lenders like to see something longer than that, 6 years or more is ideal as it shows stability and that you are settled here. Your savings are irrelevant.

On the assumption that your credit is really 'excellent', e.g. no missed or late payments and you've never gone overdrawn or had a direct debit returned, I'd make an appointment with your bank to see if they can offer you a loan as they know you best.

PeacefulWaters

Most loan companies prefer a three year residency in the UK.

Save more!

dealer_wins

Put the wedding off for a year, and save really hard so you dont need to borrow for it.

nniki

Thank you all for your responses... unfortunately, the wedding cannot be postponed.

i will reduce the outstanding debts.. just a question, is it better to repay the whole amount and leave the acount open or settle it and close it?

and yes, I have no missed payments, exceeded overdrafts etc.

bigadaj

nniki wrote: »

Thank you all for your responses... unfortunately, the wedding cannot be postponed.

i will reduce the outstanding debts.. just a question, is it better to repay the whole amount and leave the acount open or settle it and close it?

and yes, I have no missed payments, exceeded overdrafts etc.

Best to settle Loan accounts and close them, get a credit card, pay it off every month and your credit file will improve.

bargainbetty

Can you not ask for contributions to your wedding, rather than gifts? Lots of people are happy to organise currency for your honeymoon destination instead of a toaster.

You may need to rethink some aspects of the event, to see how you might reduce costs. To spend all of your savings plus another £7-8k for one day seems very high when you have to go into debt to do it. Particularly if you are struggling to get the credit anyway! Your having less than three years residency will have an impact on many high street lenders. Is your partner a UK resident for more than 3 years? Can you consider a joint application?

Good luck

BillJones

nniki wrote: »

Thank you all for your responses... unfortunately, the wedding cannot be postponed.

Can you explain this part? Are you being forced to marry? If so, you should go to the police, as this is illegal in the UK. It's also a bit off to force you to marry and then stiff you with the bill.

If you are not being forced, then the only reason I can think of for it being urgent is a visa being needed for your prospective partner. If that's the case, then you only need the civil service, which is a few hundred pounds.

I'm racking my brains trying to think why else a wedding cannot be postponed or cancelled, but really can't come up with one. Apologies if I'm missing something obvious.

Clive_Woody

BillJones wrote: »

I'm racking my brains trying to think why else a wedding cannot be postponed or cancelled, but really can't come up with one. Apologies if I'm missing something obvious.

I can think of a few.

A wedding I went to was arranged quickly as both of the brides parents had been very unwell in the preceding months and long term survival was not looking good (sorry to sound morbid). I've encountered similar situations with sick grandparents and the bride or groom being desperate for them to be at the wedding.

Some venues get booked up years in advance, if a slot became available then a couple may feel that they have to jump at the opportunity or it may be a long time before it comes up again (also last minute bookings often come with a discount because of a cancellation and a venue looking to fill the slot).

I am sure there are others.

BillJones

Clive_Woody wrote: »

I can think of a few.

A wedding I went to was arranged quickly as both of the brides parents had been very unwell in the preceding months and long term survival was not looking good (sorry to sound morbid). I've encountered similar situations with sick grandparents and the bride or groom being desperate for them to be at the wedding.

Some venues get booked up years in advance, if a slot became available then a couple may feel that they have to jump at the opportunity or it may be a long time before it comes up again (also last minute bookings often come with a discount because of a cancellation and a venue looking to fill the slot).

I am sure there are others.

I suppose that the top one makes sense, but the bottom one is really just a preference, the wedding could still be postponed, or switched to a simple registry office affair with no guests.

dresdendave

nniki wrote: »

Hi,


I would like a loan of 7-8K for my wedding. I dont know if it is relevant but I have a savings account with 3K (not much I know).

With all the above, I was expecting to be accepted but not really! Any ideas?

£3000 is more than enough for a wedding, why start married life lumbered with unnecessary loan repayments.