How can a 21 year old to get LOAN of £2000 from Bank etc but no credit history etc ?

Sarinee

My friends daughter was refused a loan from Sainsbury's as she had no credit history (still living at home etc & at College). She has since reapplied and been refused again.

Does anyone know who would give her a loan ?

She has a part time job at Asda.

Tixy

Does she have an income? is she working as well as being at college?

If she does not have a job then any lender is going to think she cannot afford to repay a loan.

If she is working then she could possibly try applying to her own bank.

Sarinee

Yes I have amended the info she works P/T for Asda. She needs someone who will take into account her position and not just do the credit check I think.

Ebe_Scrooge

One's own bank is usually the best bet in cases where there is little or no credit history - they can at least see money coming into and out of the account and make a judgment based on that. Failing that, the bank of Mum & Dad ?

Please please please - do not be tempted to touch a payday loan company, or one of these dodgy brokers. Brokers invariably charge massive fees for simply looking for a loan, and a payday loan will carry huge amounts of interest and completely trash what little credit history she has.

Pixie5740

Your friend's daughter could also try applying for a credit card, maybe one with 0% on purchases for X number of months. Applying for an overdraft on a student account, if she's eligible as a college student, might be another avenue worth exploring.

She should be aware that too many declined applications for credit won't look good to potential lenders so perhaps it's best to wait a while before applying for any more credit if possible.

Tixy

Does she have nothing at all on her credit files?
No bank account or phone contract that shows on her file at all?
Is she on the electoral roll?

Sarinee

Yes she has that she was refused. I assume she is on the electoral roll etc.

Tixy

Sarinee wrote: »

Yes she has that she was refused.

Her credit file will not show whether she was accepted or declined for any product, only that a credit application search was done.

Sarinee

OK but that does'nt help with a solution.......this question was asked if anyone has advice as how to get a loan or who to go to for one etc

CLAPTON

Sarinee wrote: »

My friends daughter was refused a loan from Sainsbury's as she had no credit history (still living at home etc & at College). She has since reapplied and been refused again.

Does anyone know who would give her a loan ?

She has a part time job at Asda.

does she have a bank a/c?
does she have an overdraft facility?
does she qualify for a 'student' (i.e. UNI) bank and if so does she have one?
what is her income?
is she on the electoral roll?
does she have a contract mobile phone?

Pixie5740

So far the advice given is to try her own bank, look for a student account, and try a 0% credit card.