Why can't I get a loan?

FTBSOS

I am 20 years old, and earn £28,000 a year been with my employee for over 4 years now and have never missed any payments nor have there been any late payments.

Tried a soft quote with Lloyds bank who said I have a credit policy decline on my account on all credit products, come try again next month 15th as their cra feed should be refreshed by then. Other bank nationwide comes back with 23.4% for 10k over 48 months so that would be instant decline.

Zoopa and ratesetter would not proceed any further from soft quote. (No hard search made, no soft quote apr was given)

My credit file shows 17 credit accounts (4 bank accounts, 5 credit cards, 3 phone contracts, one hire purchase account, one soft finance account, 2 credit building accounts, and two home credit accounts)

4 accounts have been settled and everything is satisfactory.

Number of credit accounts (including those settled) 17
Amount of available credit (excluding mortgages) £1,465
% of your total credit being used (excluding mortgages) 56%
Amount of outstanding debt (excluding mortgages) £3,202
Number of accounts overdue 0
Number of missed or late repayments in the last year 0

I have 7 credit searches currently on my file, all made last year, none this year being made this year.

I had a hire purchase agreement of £15,000 but this was voluntary terminated and has just recently been reflected on my credit file two days ago, which should of been at the beginning of January as it was then it was settled, though it reflects the jan date as settlement on report.

I am very responsible pay everything on time, I am on the elec roll been at address for 20 years. No financial associates.

My only guess is because experian only updated the hire purchase agreement of £15,000 to show it has been settled two days ago, lenders are still seeing this account as being actively opened and their CRA feed of my account is old?

The hire purchase account does not show on equifax and again nothing negative over there...

DCFC79

Whats the need for :
5 credit cards,
3 phone contracts,
one soft finance account,
2 credit building accounts,
two home credit accounts

FTBSOS

DCFC79 wrote: »

Whats the need for :
5 credit cards,
3 phone contracts,
one soft finance account,
2 credit building accounts,
two home credit accounts

Come june/July 3 credit cards will be closed down, the credit building accounts are closed. one home credit account has been closed and the other by july and july one phone contract will have been finished.

So by july i will have 5 accounts closed down, 2 already have been, leaving 10 active accounts.

themull1

DCFC79 wrote: »

Whats the need for :
5 credit cards,
3 phone contracts,
one soft finance account,
2 credit building accounts,
two home credit accounts

And a Partridge in a Pear tree!!

CLAPTON

FTBSOS wrote: »

I am 20 years old, and earn £28,000 a year been with my employee for over 4 years now and have never missed any payments nor have there been any late payments.

Tried a soft quote with Lloyds bank who said I have a credit policy decline on my account on all credit products, come try again next month 15th as their cra feed should be refreshed by then. Other bank nationwide comes back with 23.4% for 10k over 48 months so that would be instant decline.

Zoopa and ratesetter would not proceed any further from soft quote. (No hard search made, no soft quote apr was given)

My credit file shows 17 credit accounts (4 bank accounts, 5 credit cards, 3 phone contracts, one hire purchase account, one soft finance account, 2 credit building accounts, and two home credit accounts)

4 accounts have been settled and everything is satisfactory.

Number of credit accounts (including those settled) 17
Amount of available credit (excluding mortgages) £1,465
% of your total credit being used (excluding mortgages) 56%
Amount of outstanding debt (excluding mortgages) £3,202
Number of accounts overdue 0
Number of missed or late repayments in the last year 0

I have 7 credit searches currently on my file, all made last year, none this year being made this year.

I had a hire purchase agreement of £15,000 but this was voluntary terminated and has just recently been reflected on my credit file two days ago, which should of been at the beginning of January as it was then it was settled, though it reflects the jan date as settlement on report.

I am very responsible pay everything on time, I am on the elec roll been at address for 20 years. No financial associates.

My only guess is because experian only updated the hire purchase agreement of £15,000 to show it has been settled two days ago, lenders are still seeing this account as being actively opened and their CRA feed of my account is old?

The hire purchase account does not show on equifax and again nothing negative over there...

if your credit file showed a 15k debt when you applied for more credit (plus the other debts) then that would be a very good reason to refuse further credit


one, is however in amazement, that some-one aged 20 living at home and earning 28k pa isn't a net saver with thousands in the bank rather than some-one looking to borrow

unless the money is to fund a business venture then I would suggest you rethink your financial priorities
: save for things you want
: save for deposit for future property (or moving out of home)
: save to be able to take advantage of future opportunities

FTBSOS

CLAPTON wrote: »

if your credit file showed a 15k debt when you applied for more credit (plus the other debts) then that would be a very good reason to refuse further credit


one, is however in amazement, that some-one aged 20 living at home and earning 28k pa isn't a net saver with thousands in the bank rather than some-one looking to borrow

unless the money is to fund a business venture then I would suggest you rethink your financial priorities
: save for things you want
: save for deposit for future property (or moving out of home)
: save to be able to take advantage of future opportunities

I applied after it showed as settled as I knew applying before I would stand more chance of winning the lottery then getting a loan for that amount.

What I am saying is, soft searches with my bank and other lenders are coming up as a no no, even though my credit file shows the account as been settled, perhaps the lenders current CRA feeds are showing my account as opened meaning they haven't got my up to date report.

I am saving but i do not want to touch those savings, I rather take out a loan and pay it back monthly over a period of 3 - 4 years even if it meant the bank got a couple of hundred out of me.

DUTR

FTBSOS wrote: »

I applied after it showed as settled as I knew applying before I would stand more chance of winning the lottery then getting a loan for that amount.

What I am saying is, soft searches with my bank and other lenders are coming up as a no no, even though my credit file shows the account as been settled, perhaps the lenders current CRA feeds are showing my account as opened meaning they haven't got my up to date report.

I am saving but i do not want to touch those savings, I rather take out a loan and pay it back monthly over a period of 3 - 4 years even if it meant the bank got a couple of hundred out of me.

Is your savings with the people you are trying to borrow from?
If yes then that may help, however do not dismiss what the other poster is saying about saving and buying outright.

CLAPTON

FTBSOS wrote: »

I applied after it showed as settled as I knew applying before I would stand more chance of winning the lottery then getting a loan for that amount.

What I am saying is, soft searches with my bank and other lenders are coming up as a no no, even though my credit file shows the account as been settled, perhaps the lenders current CRA feeds are showing my account as opened meaning they haven't got my up to date report.

I am saving but i do not want to touch those savings, I rather take out a loan and pay it back monthly over a period of 3 - 4 years even if it meant the bank got a couple of hundred out of me.

makes absolutely no sense to borrow money when you have savings.


a 10 k loan at say 20% APR over 4 years will cost (waste) £4,200 in interest

madness

pay off all debt before saving
save then spend

grandplonker

56% usage of the available credit is high. Makes more sense to relax the speed of your credit activity, and reduce the credit cards to 25-30%.

FTBSOS

DUTR wrote: »

Is your savings with the people you are trying to borrow from?
If yes then that may help, however do not dismiss what the other poster is saying about saving and buying outright.

Savings I have are only with Lloyds, I bank with them, nationwide, barclays and nationwide.

CLAPTON wrote: »

makes absolutely no sense to borrow money when you have savings.


a 10 k loan at say 20% APR over 4 years will cost (waste) £4,200 in interest

madness

pay off all debt before saving
save then spend

I would never take out a loan which had a apr over 20%. I have savings of £8000 but I want to save this for a deposit for a house. I am coming to some money next year but it's all tied up and the car I want it's hard to come across one that ticks all the boxes = low millage and well cared for.

I would be happy to accept a loan from the bank with the apr anywhere from 4.6% to 12%.

I know I am paying interest but I am not bothered, so long as it is an reasonable amount and not loan shark territory.

grandplonker wrote: »

56% usage of the available credit is high. Makes more sense to relax the speed of your credit activity, and reduce the credit cards to 25-30%.

Yeah I know, not touching any of the cards and clearing them all off.

CLAPTON

FTBSOS wrote: »

Savings I have are only with Lloyds, I bank with them, nationwide, barclays and nationwide.




I would never take out a loan which had a apr over 20%.

I would be happy to accept a loan from the bank with the apr anywhere from 4.6% to 12%.



)

what apr are you paying on your 3k worth of debts?

at 12% your 10k loan would only waste 2,500 in interest