Loans refused - advice needed

Legrath

Hi, I wondered if I could get some advice on an issue I'm having recently with loan acceptance.

I keep getting refused credit, and I'm not entirely sure what I can do about it.

Loan : £7.5k over 4 years
Salary : £30k

I have my credit reports through from Equifax, Experian and Noddle :

- They all show I am on the electrol role at current address
- I have only 1 existing credit. A £200 credit card, with £150 current balance and no missed payments.
- No CCJ or other defaults of any kind.

Potential downsides that I can think of - I have no other credit history other than my existing Credit card and I have only been in my current address and job since January.

Its now got to the point where I have applied and been refused by half a dozen companies (Banks and Supermarkets), that I expect this is negatively affecting my credit rating itself.

CLAPTON

when did you start making your many applications?


how many have you made?


anyway start paying the CC in full each month but continue to use it regularly
and wait 6 months before any further applications
use this time to save as much money as possible

DCFC79

CLAPTON wrote: »

when did you start making your many applications?


how many have you made?


anyway start paying the CC in full each month but continue to use it regularly
and wait 6 months before any further applications
use this time to save as much money as possible

Yep follow this advice and you cant go wrong.

Legrath

CLAPTON wrote: »

when did you start making your many applications?


how many have you made?


anyway start paying the CC in full each month but continue to use it regularly
and wait 6 months before any further applications
use this time to save as much money as possible

Thanks, I started applying about 2 months ago, and I have made 6 applications - the last one being about 3 weeks ago. All mainstream banks and Supermarkets. I haven't made any since for fear of further refusals just making matters worse.

I've had the CC since about February, I will start paying it off in full if that helps, but I guess then all I can do is wait and try again later ?

Would a second CC help, Paid off in full each month - as additional credit history - or would it just hinder further loan applications ?

Tixy

I wouldn't both with an additional credit card at this stage.

Did you try your own bank at any point? Usually that is a good option for people with a limited credit history, but a well run bank account.
Ideally you would be best to make no applications for a period of say 3months, and then try again.

thebritishbloke

Having 6 applications in such a short space of time will probably hinder you if you make anymore applications for at least 6 months. Your credit history is only 6 months old. I would start paying off your credit card in full every month and try again in about 6 months. Try not to spend more than 30% of your credit limit.

cjsnorky

Hi! Have you ever made a 'Notice of Correction' to an erroneous entry on your credit file??

Whilst companies are required by the FCA to consider all applications with a NOC (i.e. not use a NOC as a cut off), I;m advised that they often dismiss them as if you had a CCJ, by basically look at the NOC and irrespective of what that NOC is, just decline anyway!

forgotmyname

nova... is a spammer DO NOT contact them.

redpete

Legrath wrote: »

- I have only 1 existing credit. A £200 credit card, with £150 current balance and no missed payments.

I've no idea how a lender would view it but if I saw such a low credit limit that isn't being paid off every month I would wonder why.

If you can't afford pay off such a small amount how would you cope with additional commitments?

rising_from_the_ashes

redpete wrote: »

I've no idea how a lender would view it but if I saw such a low credit limit that isn't being paid off every month I would wonder why.

If you can't afford pay off such a small amount how would you cope with additional commitments?

I have to agree with this - if you got the card with the intention of building a credit history, you really do need to clear it in full each month (esp if it's such a low amount) or potential lenders will view that negatively

I would think you'd be highly unlikely to get a loan from a reputable lender on a good rate after so many applications / rejections in such a short space of time

Follow Clapton's excellent advice and hopefully you'll have more luck in a few months time