Refused loan/car on finance and instalment payments

Sponge_Cake

I'm confused as to why this is happening.
I have a credit card which I pay back in full every month if I use it. I have never been overdrawn, except with my student overdraft, which was cleared 4 years ago.
Up until two months ago, I had regular income and will again in September.
I have four direct debits going out every month too...

The only thing I have seen during my online research is that because I have changed address with my bank but I haven't registered the new address with the electoral role yet. Does this sound likely? I'm puzzled!

Ebe_Scrooge

Sponge_Cake wrote: »

Up until two months ago, I had regular income and will again in September.

It's probably this - if a lender sees you have no income at the moment they're not going to lend you anything. They've only got your word that you'll be earning again in the future, and even that's not guaranteed.


Aside from that, it depends how much you're wanting to borrow, compared with your salary - if the loan is too high a percentage of your income, again that will put most lenders off.


And not being on the electoral roll is another big red flag to most lenders.

Tixy

Not being on the electoral roll at the same address as you are applying for credit is generally considerd negatively by a potential lender.

If you don't currently have an income or a regular income then any potential lender is going to be concerned about how you will afford to make repayments.

Get on the electoral roll as soon as you can (it can take 2-3months to show on your credit file) and then try applying again once that is sorted and you have an income.

MataNui

At the moment your credit worthiness is basically junk. None of the high street lenders would touch you and you would probably have difficulty in getting a mobile phone contract. As others have said your main problems are:
Not on the electoral role at the current address (in other words no evidence you actually live there).
Recently moved (This again is bad as it potentially points to instability).
No regular income (your basically telling them to lend you money but you cant pay it back).

This will correct itself but will take a few months. When you are earning and registered at that address things will improve. Dont make too many applications for credit in the meantime though as all searches go on your credit file. Too many in a short time will suggest you have financial problems and thats a very big black mark against you.