Wedding loan rejected - how to improve?

immuno

Hi everyone,

I recently got engaged and wanted to take out a 10-15k wedding loan from my bank. My partner and I already have a 2k loan with them, which we took out a couple of months ago, to move house. I also took out a credit card a month ago (for the unexpected house move). Hence, we've been told they can't offer us anything and they dont know the reason and it could be that we have another loan with them (but does just having one affect it, or the fact that it's so recent), or my credit rating, etc. I've tried to join the MSE credit club, but I can never verify my account with those questions. Perhaps I'll try experian, etc. I've also been recently contacted by a debt collection agency on behalf of HMRC! I;'ve contacted HMRC and it's a mistake and they were sending forms to a different address, and now I need to fill in my tax returns and appeal...but I guess will take a while for all of this. I'm not sure if there's anything else I can do. Should I take out a credit card for bad raters and pay off the min amount, or does that count against me as another application? I currently pay the min amount on my recent credit card...so does that help?
I guess it's also not worth contacting other banks?
Thanks everyone! I was so excited about our wedding, and now I'm worried...we plan to get married in 18 months, so there's some time, but I'm not sure whether to put a deposit down on our venue until we know the wedding can definitely happen!

lovinituk

Why the rush to tie the knot? Save up until you can afford the wedding.

Heather2603

I would say the fact that you've applied for lots of credit in a short space of time will be counting against you. It's not a good sign!

Why not save for the wedding and have the wedding you can afford rather than begin married life in debt?

Candyapple

Answer all questions below please.


1. What is your annual salary?

2. What's your partner's annual salary?

3. What is your partner's credit history like?

4. Please list: any credit cards you have: outstanding balances and total credit limits on each card. Do the same for any loans, car finance etc.

5. Are you and your partner on the electoral roll?

6. Do you have any late payments/defaults etc?

7. You need to figure out how to access your Experian report. The other free ones to use are ClearScore (Equifax) and Noddle (Call Credit)

immuno

Candyapple wrote: »

Answer all questions below please.


1. What is your annual salary? £39,000

2. What's your partner's annual salary? £24,000

3. What is your partner's credit history like?
She has a joint loan with me (2k), no other credit.

4. Please list: any credit cards you have: outstanding balances and total credit limits on each card. Do the same for any loans, car finance etc.
I have a 3k credit card, which I applied for only 2 months ago.

5. Are you and your partner on the electoral roll? Yes

6. Do you have any late payments/defaults etc?
No, but I have been contacted by that debt collection agency regarding HMRC payments. I've appealed to the HMRC, but I guess it'll take 6-8 weeks for it to be sorted.

7. You need to figure out how to access your Experian report. The other free ones to use are ClearScore (Equifax) and Noddle (Call Credit)

To the others, there are various reasons why, but we would be willing to wait a bit longer. It'd just be nice to know how we can improve...

Pixie5740

Stop applying for credit!!!

Get hold of all 3 credit reports and make sure they accurately reflect your credit history. If the MSE Credit Club is having issues finding you then it's likely lenders will have trouble as well.

Arleen

The reality is that you've recently taken debt, didn't even built few months of repayment history and had no other lending history to speak off or assets (I guess?). And now you want a loan of 9.5 times of the one you have, in essence, throw a party.

This will not happen, not for a long time. First, repay the previous loan and build a history of managing the credit card well while saving a nice amount of money aside every month. Then, by the time your credit history will be good enough to get such loan you won't need it. And maybe you will even reconsider whether it's worth spending 15k on a one-off party, or would you rather save it for a downpayment on a house/flat.

immuno

Pixie5740 wrote: »

Stop applying for credit!!!

Get hold of all 3 credit reports and make sure they accurately reflect your credit history. If the MSE Credit Club is having issues finding you then it's likely lenders will have trouble as well.

I assume this includes loans! I won't apply anymore. I guess I'll sign up myself AND my partner for all 3 credit reports? I suppose it's a very vague question, but do you think it's even possible to improve my situation within a matter of 2-4 months, or is it likely to take much longer? Also, I guess the debt management situation with HMRC will affect things?

kazwookie

Save for the wedding
Get a second job to help
Stop taking out credit

immuno

Arleen wrote: »

The reality is that you've recently taken debt, didn't even built few months of repayment history and had no other lending history to speak off or assets (I guess?). And now you want a loan of 9.5 times of the one you have, in essence, throw a party.

This will not happen, not for a long time. First, repay the previous loan and build a history of managing the credit card well while saving a nice amount of money aside every month. Then, by the time your credit history will be good enough to get such loan you won't need it. And maybe you will even reconsider whether it's worth spending 15k on a one-off party, or would you rather save it for a downpayment on a house/flat.

Thanks, but I didn't even disclose to them how much money I'd want. They simply said they can't offer a loan at all, even for 1k, so I'm more concerned about the reasons than the amount. It'll take a while to repay the existing loan. I just wanted an idea of things I could do to improve our situation and how long it might take realistically. I know that it's a lot of money for a party, but it is something that's very important to us.

Pixie5740

Yes that means stop applying for all forms of credit.

How long it will take to sort out depends on what it is that's preventing you from obtaining credit. If it's something simple like waiting for the change in electoral register address to update with the credit reference agencies then it should take too long to sort. A debt management plan with HMRC isn't going to help.