M+S Loan Application Unsuccessful

rebbo

Hi all,

RE: M+S Loan Application Unsuccessful

I've recently applied for a £15,000 loan with M+S to consolidate some debts, however i have been "unsuccessful". Having reviewed my monthly budget, thinking it may be down to affordability, the repayments over a 60-72 month period would be more than affordable for myself and will actually reduce my monthly outgoings compared to existing payments on those debts; in turn making it more manageable.

I've got a good credit score and have never missed a payment before, on loans or credit cards. I also have a mortgage which has also never missed a payment.

As mentioned; I've previously had loans which I have settled before, without missing any payments; one of which was over a 48 month term, whilst earning a lower salary!

Couple of questions:

1) Has anybody been refused a loan by M+S before?
i) if so, what reasons did they give, if any?
ii) did you challenge or manage to reverse the decision? If so,
how?

2) Could it be down to the fact this is the second time i'm looking to consolidate debts?

I appreciate i will never know until i actually contact them, but being prepared when i speak to them is always helpful.

Any support or advice would be extremely welcome.

Thank you in advance.

RichL74

They wont give a reason they'll just say they have a criteria which you didnt fit.

However if you are earning £35k a year and want to borrow £15k that would have set their alarm bells ringing, I dont care what you earn, thats no me being nasty, it just doesn't matter to me - you could tell me the moon was made of cheese it wouldn't make any difference!!

I would suggest paying the £2 to EACH credit agency to get a copy of your credit file, just to make sure there is nothing on it untoward, also forget about any credit score because as you can see now, it is pointless and doesn't exist.

If everything on your £2 reports come back clean as a whistle then you can take it up with M&S loans providing them copies of those reports and maybe they can overturn their decision - but they dont have to.

Gaz83

rebbo wrote: »

Hi all,

RE: M+S Loan Application Unsuccessful

I've recently applied for a £15,000 loan with M+S to consolidate some debts, however i have been "unsuccessful". Having reviewed my monthly budget, thinking it may be down to affordability, the repayments over a 60-72 month period would be more than affordable for myself and will actually reduce my monthly outgoings compared to existing payments on those debts; in turn making it more manageable.

I've got a good credit score and have never missed a payment before, on loans or credit cards. I also have a mortgage which has also never missed a payment.

As mentioned; I've previously had loans which I have settled before, without missing any payments; one of which was over a 48 month term, whilst earning a lower salary!

Couple of questions:

1) Has anybody been refused a loan by M+S before?
i) if so, what reasons did they give, if any?
ii) did you challenge or manage to reverse the decision? If so,
how?

2) Could it be down to the fact this is the second time i'm looking to consolidate debts?

I appreciate i will never know until i actually contact them, but being prepared when i speak to them is always helpful.

Any support or advice would be extremely welcome.

Thank you in advance.

No-one will be able to give you a definitive answer and all M&S have to say is that you did not meet their criteria - no more. However:

You earn £35,000. As a rule of thumb, most lenders will let you borrow roughly 50% of your income on an unsecured basis - say £17,500.

When borrowing to consolidate, lenders will err on the side of caution - that you will use the money to buy something shiny. So if you had £15,000 of debt, and wanted to borrow to consolidate this, they will assume that you will not use this to pay off older debts and end up with £30,000 of debt - above the 50% figure.

The fact that this is the second time you are borrowing to consolidate debts suggests that you are continuing to get yourself into the same mess again and again. That would set alarm bells for any lender.

Time to drastically rethink your income and outgoings, head over to the Debt Free Wannabe board with a statement of account and take proactive action on sorting out your debt, rather than looking to borrow your way out of it all the time.

Foxy-Stoat_3

rebbo wrote: »

Couple of questions:

1) Has anybody been refused a loan by M+S before?
i) if so, what reasons did they give, if any?
ii) did you challenge or manage to reverse the decision? If so,
how?

2) Could it be down to the fact this is the second time i'm looking to consolidate debts?

1) Most probably.
i) They dont give reasons when they decline
ii) They probably dont have an "appeals" department !!!
2) As others have said, its probably down to you being over committed AND looking to reduce your debt by consolidated them over a longer period.

While consolidating all your debts will seem the best idea at the moment, and indeed the best idea before, the fact that you are now having to consolidate again suggests that you have an issue with debt and you should address the causes rather than spending the rest of your life in debt.

Whats your current debt and interest rates and look to reduce the interest as much as possible, pay back the higher interest rate cards, reduce your lifestyle for a while.

Cash_Flow

rebbo wrote: »

Hi all,

RE: M+S Loan Application Unsuccessful

I've recently applied for a £15,000 loan with M+S to consolidate some debts, however i have been "unsuccessful". Having reviewed my monthly budget, thinking it may be down to affordability, the repayments over a 60-72 month period would be more than affordable for myself and will actually reduce my monthly outgoings compared to existing payments on those debts; in turn making it more manageable.

I've got a good credit score and have never missed a payment before, on loans or credit cards. I also have a mortgage which has also never missed a payment.

As mentioned; I've previously had loans which I have settled before, without missing any payments; one of which was over a 48 month term, whilst earning a lower salary!

Couple of questions:

1) Has anybody been refused a loan by M+S before?
i) if so, what reasons did they give, if any?
ii) did you challenge or manage to reverse the decision? If so,
how?

2) Could it be down to the fact this is the second time i'm looking to consolidate debts?

I appreciate i will never know until i actually contact them, but being prepared when i speak to them is always helpful.

Any support or advice would be extremely welcome.

Thank you in advance.

Give Nationwide a try, you can obtain a loan quotation which will not leave a footprint on your credit file.

With regards to lenders only lending upto 50% of your salary this is a moneysaving.com myth.

RichL74

Gaz83 wrote: »

You earn £35,000. As a rule of thumb, most lenders will let you borrow roughly 50% of your income on an unsecured basis - say £17,500.

...SNIP

No, that was me making a suggestion that if he earned £35k then asking for £15k it wouldnt look very good. He never confirmed his salary, could be £90k for all we know.

Gaz83

RichL74 wrote: »

No, that was me making a suggestion that if he earned £35k then asking for £15k it wouldnt look very good. He never confirmed his salary, could be £90k for all we know.

Yep, you're right - apologies OP, missed this bit.