Why is my daughter unable to get a car loan?

ginsoakedgirl

Hi

My daughter is 20yo and has been working full time since leaving school. Her monthly income after tax is over £900 and her regular outgoing amount to around £200. She has her phone bill and car insurance coming out of her account by direct debit.

She has been unsuccessful in obtaining a loan or even a credit card in order to purchase a newer car.

She has friends who are the same age with virtually identical incomes and personal circumstances who have been able to obtain credit cards, but she has been refused - she initially applied for a loan and then a credit card, and then went to the bank where her salary is paid, and all to no avail.

She has never defaulted on her phone or insurance payments.

She called the money advice service but they couldn't help her.

Any ideas anyone?

Many thanks!

molerat

What do her credit files show ?

Bantex_2

£900 income
£200 outgoings.
Working for 3 or 4 years.
Why does she need a loan?

nidO

It's possible she simply has no appreciable credit history at all - Assuming her phone is on contract this is at least something but on it's own isn't much, especially if her network doesn't report it to the same credit reference agency as her chosen loan/card provider use.

She may wish to order a copy of her statutory report (£2) from each of Equifax and Experian, and sign up to Noddle's free report - Make sure all info at those about her is accurate, that the phone contract appears on at least one of them, she's on the electoral register, etc.

You say she approached her own bank - Was this for a loan, a credit card, or both? Did she actually apply to her bank for either of these and actively get rejected?
If so, she may want to start more simply and ask them to setup an arranged overdraft on the account assuming she doesn't have one already as this should be easier to obtain. She doesn't have to and shouldn't actually use it, but it will be a line of credit that her bank and credit reference agencies will then be seeing.
Give it a few months from that, and her bank will probably be quite happy to provide her with a credit card.

DCFC79

Is she in the red or black with her account ?

Can you not help her out and she pays your back ?

Tixy

What size loan did she apply for?

What credit card did she apply for? did she apply for a subprime/starter credit card? or did she apply to a mainstream lender?

ginsoakedgirl

She has taken up a packaged current account on the advice of the customer service assistant but doesn't have an overdraft facility. Her account is always in credit and her credit reports don't show anything out of the ordinary - she has access to her Experian file through her packaged account. I would really love to help her out myself, but I don't have the funds unfortunately.

Nid0, thanks for your advice about the overdraft facility, I will definitely suggest to her that she does this.

She applied for £5,000 loan and the credit card that she applied for was one suggested as a card for those with no credit history.

Thanks all for your responses, very much appreciated.

MrsBartolozzi

Is she on the electoral roll?

CLAPTON

do her reports show her as being on the electoral roll?


has she tried asking her bank for a CC as they know how she handles her bank a/c


a 5,000 loan is a large sum for some-one only earning around 11,000

how much does she save each month?

R_P_W

ginsoakedgirl wrote: »

She has taken up a packaged current account on the advice of the customer service assistant but doesn't have an overdraft facility. Her account is always in credit and her credit reports don't show anything out of the ordinary - she has access to her Experian file through her packaged account. I would really love to help her out myself, but I don't have the funds unfortunately.

Nid0, thanks for your advice about the overdraft facility, I will definitely suggest to her that she does this.

She applied for £5,000 loan and the credit card that she applied for was one suggested as a card for those with no credit history.

Thanks all for your responses, very much appreciated.

Packaged account? How much is that costing per month? The advice from the customer service assistant wasn't advice, it was a sale.

ginsoakedgirl

Sorry, forgot to mention that she is on the electoral roll, yes.
She has a standing order for £100 to go direct into her savings account each month. I don't think that she has applied for a cc with her bank, only a loan. Would it be worth making an application for a cc do you think?