Why can't I get a loan?

Herzlos

Why the multiple bank accounts and phone contracts? Both look pretty bad from a lenders perspective.

I'd try and rationalize everything you can, as 17 sources of credit seems like a lot for someone who's only been able to get credit for 2 years.

Gaz83

Without wanting to drag this off-topic, I've no idea why a lender would necessarily consider multiple bank accounts a bad thing.

I've got four myself - one for day-to-day money, one where my bills and direct debits are funded from, one that I use for shopping and diesel, and one that I use for any small savings that I have (as well as another savings account). They're all well-managed and it saves me getting funds mixed up - I can budget accordingly at the start of each month.

I've never heard of a lender looking at multiple bank accounts adversely before.

Caladan

Gaz83 wrote: »

Without wanting to drag this off-topic, I've no idea why a lender would necessarily consider multiple bank accounts a bad thing.

I've got four myself - one for day-to-day money, one where my bills and direct debits are funded from, one that I use for shopping and diesel, and one that I use for any small savings that I have (as well as another savings account). They're all well-managed and it saves me getting funds mixed up - I can budget accordingly at the start of each month.

I've never heard of a lender looking at multiple bank accounts adversely before.

You're basically a loss-maker on all those accounts for the various banks (assuming they're with different banks, if they're all with the same bank you're probably still a loss-maker for them as they have to administer all those accounts). None of them receive enough money to make it worthwhile for the bank and frankly, in this day and age of internet banking and immediate transfers/payments there's little need for 4 different accounts.

Also, if you have 4 bank accounts which I'm presuming allow overdrafts, you could apply for an overdraft in all of them and be accepted, and then stitch both yourself, and the banks up.

Something many people don't realise is that "having a bank account" doesn't mean the 'bank' makes anything from you being a customer, it usually requires regular, proper credits or cross-selling other services to make you an actual worthwhile customer (not that a bank will say this, as it would make them appear to be arrogant).

I've come across people with £200 in a savings account saying "I've been a customer for 10 years so you should fulfil my every desire" even though they've basically lost the bank money.

And, I fully accept I haven't actually addressed your point because I went off on a rant instead, but having reviewed my reply I'm going to post it anyway.

As to the lenders looking at several bank accounts as a bad thing - it's 4 different credit records with 4 different corporations you can mess things up with, that's a higher risk than just one.

Sorry for the disjointed post,
Cal

Thrugelmir

Gaz83 wrote: »

Without wanting to drag this off-topic, I've no idea why a lender would necessarily consider multiple bank accounts a bad thing.

Turn the question around. Why are multiple accounts required? Lenders are looking for behaviour which doesn't match the applicants circumstances. So doesn't apply to everyone.