Unsecured finance after working abroad

Lamplighter

Hi


I'm a UK citizen in full-time employment, good salary, up to date on all commitments, clearing around £500pcm surplus after routine expenses.


I worked in UAE 2010-14, during which time I was necessarily non-resident in UK.


On coming back to UK, I registered on the electoral roll, which was published in Feb 2015 (checked via Experian).


I have recently moved house, and am looking for £2-3k finance for some household purchases. I would be happy with finance, loan or credit card, with intention to satisfy it in full with January 2017 bonus (on target to be £10k+ before tax).


I have a £4k 12-month loan with my bank, taken out for my rental deposit and moving fees last year, which is now half repaid with perfect history. Bank have told me they won't offer further support until this one is cleared.


However, I'm not getting approvals anywhere else, even for department store finance. Even getting a contract mobile phone was troublesome (although I made it in the end). Experian shows nothing untoward, however each application is leaving a scar on my credit file.


I've been told by one prospective loan provider that the issue is probably in that I've not got 3-years electoral roll history (naturally, they never say exactly why they "can't help right now").


Is this plausible? Are there any providers who wouldn't take this as a pre-requisite? I can demonstrate that affordability isn't a problem, and I'm a 42yo UK citizen resident since birth until 2010.


Frustrating in the extreme! Would be grateful for any advice.


Thanks, and Regards

Arleen

I can tell you from experience that not having full 3 years history of UK address (not to even mention electoral roll) is going to make you not eligible for most online products. They simply see that as flight risk and generally auto-reject online applications just for that. Also it seems like you've applied in quite a few places, so the amount of credit searches on your account is most likely also pretty scary.
Additionally micro loans like that are generally high risk items (with also high %) because this is something that can be covered with couple months of saving, and if you would rather take a loan than do that then it's a sign of rather unhealthy financial situation.
I mean even in your specific case you could just buy the household item one-at-a-time every couple months and have them all in after 6 to 10 months - without having to pay any interest, and with still 200 pounds left every month that you can spend/save. Why not do that, instead of paying interest on the money?

fwor

I can't understand why it would not appear on your credit record, but is it possible that your six defaults and negotiations for a full & final settlement on them in late 2010 are still known to the finance companies concerned?

https://forums.moneysavingexpert.com/discussion/comment/38292024#Comment_38292024

IIRC it takes six years for that type of stuff to drop off your records and, depending on the outcome of the above, that may not have expired yet?

Lamplighter

Yup fwor - Possibly this is the issue, however all were satisfied in 2010/11, only two are still showing on Experian (as satisfied), and they will both be removed in July, being 6 years after default. I've fessed up to them during applications, and have been told they're not the issue. Hence my thinking it is the non-residency / not appearing on the electoral roll issue. If this is the case, it will continue to be an issue until early 2018...


Arleen - thanks for the advice. I can indeed go step by step, which is probably what I'll have to do. My boy is 3 years old, wanted to get his bedroom furniture & furnished, as he's still using his nursery stuff!


Best Regards

Arleen

Lamplighter wrote: »

Yup fwor - Possibly this is the issue, however all were satisfied in 2010/11, only two are still showing on Experian (as satisfied), and they will both be removed in July, being 6 years after default. I've fessed up to them during applications, and have been told they're not the issue. Hence my thinking it is the non-residency / not appearing on the electoral roll issue. If this is the case, it will continue to be an issue until early 2018...


Arleen - thanks for the advice. I can indeed go step by step, which is probably what I'll have to do. My boy is 3 years old, wanted to get his bedroom furniture & furnished, as he's still using his nursery stuff!


Best Regards

As recent immigrant to the UK (not long ago passed my 3 years residency here) I can tell you that the month where I passed 3 years was... very welcome. And while during the 3 years I already built up my credit file from nothing to pretty attractive one, lack of that 3 years of address was really problematic, up to the point where I had trouble getting proper bank account open.

And as I've mentioned before, while the address for sure was problem with your first 1-2 applications, now you must have quite a few searches which makes you look very desperate. I wouldn't even try to lodge any application for at least 3 months to let things settle. If you want to speed on the furniture you can always put more of your free-cashflow into it, or shop for a better deal if got some time to spare. Not much else that can be done.

dgtazzman

As somebody with dual nationality (Dutch/UK) that came back to live in the UK 7 years ago, I can say the first 3 years were tough. Took a lot of effort to get a standard bank account/debit card, most banks just turned me down as I walked through the door. I had to put a security deposit down for a mobile phone contract, etc.

After 3 years, it got a lot easier, I was able to apply for credit cards and a loan online and get them.

After 6 years, financial service companies started chasing me for my business (addressed advertising for credit cards, premium bank accounts, etc.).

Past 3 years in the UK is the magic figure for most companies. The fact that you also have old defaults showing won't do you any favours though, satisfied or otherwise.