Why can't I get a loan?

wozzza72

So I am on the electoral register and have a bank account.

I have a job paying good wages regularly.

I have 2 credit cards with about £1000 on.

According to MSE Experian Affordabilty Ratio, my debt ratio is very good, credit utilisation good but my disposable income is weak.

I have plenty of disposable income, how do they determine that I don't?

If I do the MSE loan eligibility calculator I have 0% chance of ANY loan.

I do have 3 defaults for £1100, £300 and £250 from 2011, by March, Sept and October these will be over 6 years old respectively. Surely these wont be that bad for my chances of a loan now?

Clearscore won't find me any loads either.

Any idea what is going on?

DCFC79

wozzza72 wrote: »

So I am on the electoral register and have a bank account.

I have a job paying good wages regularly.

I have 2 credit cards with about £1000 on.

According to MSE Experian Affordabilty Ratio, my debt ratio is very good, credit utilisation good but my disposable income is weak.

I have plenty of disposable income, how do they determine that I don't?

If I do the MSE loan eligibility calculator I have 0% chance of ANY loan.

I do have 3 defaults for £1100, £300 and £250 from 2011, by March, Sept and October these will be over 6 years old respectively. Surely these wont be that bad for my chances of a loan now?

Clearscore won't find me any loads either.

Any idea what is going on?

Your defaults despite being old might still have an affect. They give the impression you cant manage your finances.

[Deleted User]

Are you carrying those card balances or clearing in full? If carrying, what are the limits?

The defaults won't be doing you any good, but I wouldn't take the eligibility checker as gospel.

Have you actually applied for anything and been rejected?

wozzza72

Thanks for the replies.

I'm carrying the balances at the minute but paying a lot above the minimum amount to get them cleared. Both cards have £1000 limit, £700 on one, £200 on other.

Not been brave enough to apply for anything yet as was put off by the checkers and my credit score.

I actually did a checker and put I had a mortgage and I had a lot more 'offers'. Surely that can't be an issue as so many people these days are renting?

Who would be a good company to apply with?

[Deleted User]

Lenders often prefer the stability of those with mortgages.

You say you have plenty of disposable income - why are you carrying relatively small balances on your cards? That is probably the main concern for lenders as it suggests you have no money left over at the end of the month.

wozzza72

I have had bad credit from 2011 when I hit bad times. As this is nearly 6 years ago now and because I have very few accounts I pay via direct debit I thought it would be useful to show that I can maintain 2 credit cards monthly so I keep them ticking over.

[Deleted User]

All you're showing is you can't afford to clear your cards and are a payday away from disaster.

Use them but always clear them in full each month. That will make a huge difference.

Candyapple

It'll be the 3 defaults that are giving you the 0% scores with Experian/MSE club. Wait until they drop off and then check your file a month later and your scores should improve hugely.

TwinMummy

Out of interest how long would it take defaults to drop off?

[Deleted User]

6 years. .

Superscrooge

wozzza72 wrote: »

So I am on the electoral register and have a bank account.

I have a job paying good wages regularly.

I have 2 credit cards with about £1000 on.

According to MSE Experian Affordabilty Ratio, my debt ratio is very good, credit utilisation good but my disposable income is weak.

I have plenty of disposable income, how do they determine that I don't?

If I do the MSE loan eligibility calculator I have 0% chance of ANY loan.

I do have 3 defaults for £1100, £300 and £250 from 2011, by March, Sept and October these will be over 6 years old respectively. Surely these wont be that bad for my chances of a loan now?

Clearscore won't find me any loads either.

Any idea what is going on?

Look at it from the lenders point of view.............

Three times you have borrowed money and defaulted on your debts.
You are not clearing the debt on your credit cards which suggests you have as much debt as you can handle.

Why would any lender be in a rush to lend you further money?