Desperate to get a loan - got rejected

neviril

Hi,

First of all, I would like to apologise if this is one of the many many threads on this topic.
As the title suggests I desperately need a loan but I got rejected for the one I applied for.

According to my free trial credit report with Equifax I have a "Good" Credit score 457/600, this is from today.
In October (30th) Experian rated me 904/999 which they indicated as "Good", now I know this isn't very up to date but I can't really afford to pay for it right now.
Noddle rates me 3/5 but refuses to update the Electoral Roll info.
I have some doubts about how helpful these scores and reports actually are but thought I would include it.

--
I have 1 credit card (Vanquis) since July 2015, I have always paid this off in full every month and never incurred any interest on it. The card has a limit of £250 and at the moment I could use the full £250 but it wouldn't be enough + the reason I don't like to use the card is because of the high APR (60%). So far I have used this card in Oct-Nov-Dec-Jan but I make a habit of immediately paying it off (not sure if this is bad?).

I also have a £100 overdraft with my Bank(TSB) and I make use of this every month but never go over it. Again, I'm not sure if this is a bad habit?

I am in Full Time Employment (permanent position) but its not a very high paying job. (Roughly £15080 per year).

The reason I need this loan is because I need to move. I am currently (privately) renting a place that I and (Shelter Scotland agreed on this) would deem as "uninhabitable". It has a LOT of issues (of which all were already there when I moved in but have worsened since) and to keep it simple, it's not water tight, it's affecting my physical health & mental state, the plumbing doesn't work and going to the Public Toilets 3 months in a row is just not funny anymore. (If needed I could elaborate on these issues).

I work from home so I am also surrounded 24/7 with the dry rot, damp etc etc.
Mentally I'm not sure how long I could go on living in a place like this but the reason why I need to move NOW and not in 2 months time is because the telephone+broadband has developed a fault that my provider has not (yet) been able to fix. It stopped working around the 28th of January and every day its not working, is a day I can't work and thus don't get paid.
I'm getting into the second unpaid week and my situation is starting to look more grim.
Just for the record, there aren't any other jobs in this area so I'm really reliant on my current job. I get the feeling that my boss is getting more and more unhappy (rightly so) and if I don't change my circumstances soon I might lose my job over this.

I applied for the loan, hoping/wishing that I could immediately secure a (private) home elsewhere get the internet and telephone installed and then move ASAP (before March) so that I wouldn't have to pay more rent here.
Now that my loan has been rejected I am really not sure what to do anymore. Without the loan it would cost me many months to save the amount needed for Deposit, Rent, Removal, Agency Fees(looking to move to Wales) and by which time I might get fired if my provider doesn't fix the internet/telephone fault.

I applied for a loan with a company called Lending Works (Peer-to-Peer) I did a soft check first and it said I had an 80% chance of getting it. Now I've never had a loan before so maybe it was stupid of me to apply for it but alas I got rejected with the following message:

"The main reasons why your loan application was declined were the following:
- We have been unable to trace you on the voters roll for the last three years
- Affordability of the loan
- Other information we have received from Equifax
- Your loan request is outside our standard criteria"

I am quite scared at the moment to apply to other companies and get similar messages and I've read that applying at multiple places is bad for your credit score. I haven't been on the Electoral Roll until July/August, I realise in hindsight that I should have applied for this sooner but as an EU citizen I am not allowed to vote here so I never thought it was necessary to register and I did not know a thing about credit before. I have been in the UK (Scotland) since May 2012.
Regarding the affordability I am not sure what they mean, they showed me the repayment would be £95 per month, which I am 100% sure I could pay off, I was actually planning on using part of the loan to move and the other part to start repaying it, but once settled and working 40hrs a week again I'd be able to pay this off easily.
The "Other information we have received from Equifax" sounds really vague to me so I signed up with them today but can't really find anything on my credit report other than the Electoral Roll issue.
"Your loan request is outside our standard criteria" I didn't know they had a standard criteria - it doesn't seem clear on their website?

Just to clarify: I applied for a £3000 pound loan, to repay over 3 years roughly £95 per month.
I don't need the full £3000 pound, but the lower the amount the higher the interest rate? I do need more or less £1500 to move, and depending on the house I may need to purchase a cooker and a washing machine, but the rest of the money would go towarts repaying it...

I also have 1 debt which is not (yet?) on ANY of my credit reports. I have been arguing with the company BCW about repayments and they do not accept whatever offer I throw at them and keep freezing my account for 30 days. The debt is for £410 pound of which 35% is their added interest, the rest was an unpaid electricity bill which I never received any letters about. I want to pay this off in installments so I can use my money to move first, instead of paying it off and moving later. But I've been e-mailing with them since December and they keep refusing all my offers to the point that I'm wondering if they even want me to pay it back. I don't think this has been affecting my credit as I can not see it anywhere?

By the way, I'm really sorry for the long post!

I'm looking for advice on how I could get the money/loan to be able to move asap.
I've been trying to stay away from these bad credit loans that have ridiculous high apr's or is that the only type of loan I would be able to get?
I "Kinda" feel as if it's unfair as Equifax does rate my credit as "good".

Anyway, thank you for reading all of this and if you need more info or clarification please let me know

Caz3121

neviril wrote: »

According to my free trial credit report with Equifax I have a "Good" Credit score 457/600, this is from today.
Equifax do not lend money and nobody else can see your score
In October (30th) Experian rated me 904/999 which they indicated as "Good", now I know this isn't very up to date but I can't really afford to pay for it right now.
as above, Experian don't lend money either

I have 1 credit card (Vanquis) since July 2015, I have always paid this off in full every month and never incurred any interest on it. The card has a limit of £250 and at the moment I could use the full £250 but it wouldn't be enough + the reason I don't like to use the card is because of the high APR (60%). So far I have used this card in Oct-Nov-Dec-Jan but I make a habit of immediately paying it off (not sure if this is bad?).paying off in full every month is good....unless a lender is hoping to earn lost of interest from you

I also have a £100 overdraft with my Bank(TSB) and I make use of this every month but never go over it. Again, I'm not sure if this is a bad habit?Using overdraft regularly is a negative...you don't have sufficient income for your current outgoings without an additional loan payment being added

Now that my loan has been rejected I am really not sure what to do anymore. Without the loan it would cost me many months to save the amount needed for Deposit, Rent, Removal, Agency Fees(looking to move to Wales) [are you planning on keeping the same job whilst in Wales?

"The main reasons why your loan application was declined were the following:

they showed me the repayment would be £95 per month, which I am 100% sure I could pay off, - ]you currently do not have £95 per month spare -need to use overdraft


The "Other information we have received from Equifax" sounds really vague to me so I signed up with them today but can't really find anything on my credit report other than the Electoral Roll issue.
Electoral roll is a major factor for many lenders

"Your loan request is outside our standard criteria" I didn't know they had a standard criteria - it doesn't seem clear on their website?
they will not publicise what their standard criteria is...you just apply and hope you meet it

As you are relocating to a new area, could you consider a room in a shared property. Will mean that your deposit etc will be lower (do you have a deposit to come back from current place) rent/bills should be lower too allowing you to save and get to know areas you may want to live in when you can afford to get your own place

DCFC79

A room in a shared house or flat is a good option.

neviril

Hi,
Thanks for your reply!
I know that Equifax/Experian etc don't offer loans I just saw everyone mentioning these scores.

I don't need to use the overdraft at all I do have enough money, I wasn't aware that this would be impacting me at all! I just transfer all my money onto my savings account. I will refrain from using my overdraft in the future (just saw it as an extra amount to use).

If the Electoral Roll is a major factor does this mean I'm doomed then?
I would keep the same job, its work from home, so only need an office and telephone + broadband but I risk losing it at the moment due to internet and telephone not working, and I'm not sure how long they will accept this and my provider isn't doing much to fix it/compensate me, if I can get another property and get the broadband/telephone installed I could just move and immediately work again which is why it's so important to me to move asap and not wait and save money.

I can not get a shared property with a complete stranger due to needing a secluded/quiet office and dedicated broadband/telephone line. I've done flatsharing in the past and you just never know what you get yourself into, and I can't have someone smoke weed and whatnot whilst I'm trying to work.

I am currently sharing with my friend but I provide for the both of us. (food bills rent etc) He's on benefits and combined we are not able to come up with the sum to move now, I "would" have this money on my payday but I can't wait that long.

I can afford a house of my own in rent + bills food + loan repayment, the trouble I have is, I can't afford rent + deposit + removal + agency fees up front.
My current house is £350 for example (for the whole house/not shared) and Wales has similar prices it's just when you look at 250 agency fees, 350 rent, 350 deposit (or more) + 500 removal (more or less) it instantly becomes impossible for me to pay that. To get this money would take me a month or 2, but by that time I might have already lost my job due to not having any internet and telephone.

I don't want to whine too much either but in the mean time I have been told this house is uninhabitable and I should not even be allowed to live in these circumstances

DCFC79

Can you not get moved by shelter ?

Look for somewhere to rent local to where you are now.

Not being on the electoral roll isn't the end, plenty of people aren't on the electoral roll and get accepted for loans, it just makes it harder if lenders can't verify your details.

Caz3121

neviril wrote: »

by that time I might have already lost my job due to not having any internet and telephone.

have you looked at internet dongles or tethering from a mobile phone? If you have a Business Broadband package then no access from 28th January is unacceptable and I would be seeking compensation (if a residential package then this will not apply)

robber2

neviril wrote: »

Hi,
Thanks for your reply!
I know that Equifax/Experian etc don't offer loans I just saw everyone mentioning these scores.

I think you will find that most of the mentions the scores get on THIS site are to highlight their almost total irrelevance.

neviril

Caz3121 wrote: »

have you looked at internet dongles or tethering from a mobile phone? If you have a Business Broadband package then no access from 28th January is unacceptable and I would be seeking compensation (if a residential package then this will not apply)

I sort of live in the middle of nowhere, with fibre optic broadband (when it works its amazing) but only a meek 1g phone signal, usually there isn't any signal in the house. (i'm writing this post at another friends house, unfortunately I can not temporarily work from there)
I don't have a business package which is something I would definitely apply for in the new property. I've had nothing but trouble with my internet provider (& the house) ever since moving here, the problem is, it runs on BT's network, so even if I switched provider, I would still have the same fault (apparently it's an underground fault and they need a specialist to fix it, or so they told me).

Blackpool_Saver

Noddle will if pushed VERY hard update your electoral roll, I had to phone several times and send emails with attachments from my local council to get them do do it. Noddle/call credit/credit compass are all the same thing, Noddle takes a month to update what WE can see, which is not the same as potential lenders see. If you are on a trial or paying, or getting a statutory with compass it shows TO YOU sooner. Hideous money making racket, but we have no choice as we have to get our ducks in a row before making applications.

neviril

DCFC79 wrote: »

Can you not get moved by shelter ?

Look for somewhere to rent local to where you are now.

Not being on the electoral roll isn't the end, plenty of people aren't on the electoral roll and get accepted for loans, it just makes it harder if lenders can't verify your details.

I will have to check with Shelter, I'm not sure I often get the idea that because I'm an EU citizen, I have no children, and am not "fragile" I seem to be very low on whatever priority list there is :P

The problem with renting locally is that this area keeps getting flooded and powercuts and broadband/telephone issues seem to be the norm (which I found out the hard way) so I'm really looking to move away from this entire area, and also although they could possibly provide me with another house, the internet might be really bad (not good enough for my work?) like where I live I still get 76mb but 2 miles down the road you can only get 5 mb.

I don't want to sound like a snob, but I do have some requirements (enough rooms in the house, pets accepted, OK internet etc) I think Shelter would just place you in any house?

Candyapple

Firstly there is no such thing as a credit score, only your credit history is what matters.

From your post you mentioned BCW - would this be Buchanan Clark & Wells (or similar) a debt collection agency?

I can see several reasons why you have been declined and unfortunately for you, think you are going to have to give up the dream of getting a loan to cover your move - unless of course you want to be paying crazy high APRs.

- Being on the electoral roll for barely 3/4 months
- Debt collectors = late payments/default on your credit file
- You fail on affordability meaning the loan company has taken into account your salary, rent, living expenses etc and decided that you wouldn't be able to repay the loan because your outgoings coupled with data on your credit reports suggests otherwise
- You have a subprime credit card (low limit) and assuming this is your first credit product you've only had it for 5 months. Ideally you want 12 months minimum
- Your salary is too low in relation to the amount you want to borrow

Have you tried asking the bank where your salary is paid for a loan? They will have a history of how you run your accounts. Or ask for a bigger overdraft?