Loan wrongly declined

Marko`

I don't think they are under any obligation to tell you why they declined you. They need to tell you what credit reference agencies they used.

Being approved for a loan in the past doesn't mean you will in the future, different lenders have different criteria, and their criteria is subject to change, lenders are much more strict about lending now than they were a few years ago.

You're parent's credit history shouldn't affect yours, but any financial connections with them will be shown on your credit report, it is probably worth getting a copy of your report from each of the three big agencies to make sure there is nothing amiss on there.

adindas

MABLE wrote: »

In the old days it could depend on whether the bank manager liked you or not. In my case he did not and that was confirmed by his deputy.

Thankfully we now have credit scoring systems which make it fairer.

Majority of people have a straight forward case a few do not. If you have around 60 pages of credit report, not everyone are interested in scrutinizing it page by page.

If you have more than £20.000 money come in and out quite often each month into your account the computer program will tag it as suspected money laundry so manual human intervention is needed.

I got interview once by a bank officer for an application of LLoyds bank account.

Where did you get money £20,0000 coming into your account often while your monthly income is not close to this figure ?

I explained to her I just simply transfer it out and in again to my other bank accounts in the UK ? I also add it notice that the balance did not increase each month. She simply did not understand and kept telling me that she had obligation to find out where this large sum of money was coming from ?

With desperation I asked her to call her manager. After I explained the same story to him, he could easily understand what I was doing. So the account sorted on that date.

Same person, same circumstance the decision could be entirely different just because the wrong person accessing your application.

While majority are not, few people working in the bank are simply lazy or incompetent in their job.

Caz3121

welshwolf wrote: »

I'm 27, earn £20k +!

welshwolf wrote: »

i'm asking for £18k

Nowadays the ballpark seems to be 50% debt to income ratio so it could well be affordability that is the issue depending on how much over the £20k the "+" is

somethingcorporate

You want to spend almost a years salary on a car, thankfully the lenders are more sensible than you.

You are in the best financial position you ever will be (with lowest overheads) yet can only put £500 down on a car. I wouldn't lend to you either!

welshwolf_2

somethingcorporate wrote: »

You want to spend almost a years salary on a car, thankfully the lenders are more sensible than you.

You are in the best financial position you ever will be (with lowest overheads) yet can only put £500 down on a car. I wouldn't lend to you either!

But going back to the Sainsburys loan for £15k over 36 months, surely that's not beyond my requirements.

poppasmurf_bewdley

You do not have any 'right' to be given a loan.

It is entirely up to the company concerned whether they wish to loan you money. The fact that two loan companies declined your application is a sign that you do not meet the guidelines these companies have laid down for lending money.

There is very little chance of confusing you with another member of your household. Do you share the same date of birth? I think not!

heartbreak_star

welshwolf wrote: »

But going back to the Sainsburys loan for £15k over 36 months, surely that's not beyond my requirements.

It's still more than half your salary.

HBS x

fozmcfc

I personally think you are asking too much compared to your salary.

A change of circumstance, such as a job loss or pay cut and you will be unable to pay the loan off. And yes job losses, can and do happen even when people are 99.9% sure, their jobs and salaries are safe.

When I had £15k of debt, compared to my £25k salary I didn't think anything of it, but looking at it, had I lost my job, that would have been it, I wouldn't have been able to pay my debt repayments, for more than 1 month.

As somethingcorporate says, if you earn £20k + in your situation, then only being able to put £500, suggests, you simply spend all your money each month, rather than put away a few hundred which you could easily afford to do.

welshwolf_2

thank you all for your valuable feedback. i was just concerned that i've always considered myself to be financially sensible, since i've never got into debt, avoided borrowing money and always made sure i had savings in my bank. i took it for granted that when i finally asked for finance i would be in a strong "yes" position.

Caz3121

welshwolf wrote: »

i've always considered myself to be financially sensible, since i've never got into debt, avoided borrowing money and always made sure i had savings in my bank.

Use some of your savings, you are likely earning less interest that the interest you would be charged on the loan