Loan Concerns

Spruceless

Hi all,

I want to apply for my first loan but have a few concerns about my situation.

A little background: I am 25, Work full time and have a salary of £23k. Checkmyfile.com gives me a credit rating of 763. I need a £10k loan as soon as possible, but I don't want to rush into anything that I'll regret later.

I have been offered a 10k loan from my bank (Lloyds). The APR was 17% which seems very high to me. It seems that the best idea is to find a loan with a better rate.

My first concern is my address history. I ran the MSE loan eligibility thing and it told me that I was not eligibile for any loans. I have also had problems getting credit reports becuase they could not establish my identity. I believe that this is becuase of my address history.

In the past 5 years I have moved around a lot, both domestically and internationally. I have not been prudent, and often failed to notify my bank etc. of my changing addresses. I don't know what addresses are linked to my account. As a result I have no idea what my "official" address history looks like according to a lender.

I am worried that during a loan application process the lender may deny my application purely because my address history doesn't​ match their records. Is there anything I can do to sort this out?

Another concern that I have regards the electoral Roll. I was added to the register on the 1st of April. But I have been told that it cant take a long while for my details that the lender sees to be updated. So my question is, if I apply for a loan now, will they know I'm on the electoral roll or not? Also how much weight does being on the roll have over a loan application? Am I stressing out over nothing?

Thank you if you read this far!

Any advice would be greatly appreciated!

Kind Regards

S

[Deleted User]

First thing you need to do it to get hold of your three files and see what is on there.

What sort of history do you have, defaults, existing credit, debts, financial associates etc? Ignore any score you're given.

The rate you've been offered so far suggest you're fairly high risk, so you need to figure out why.

Then you need a plan B in the event you don't get a loan. What is the urgent need for the loan? Where on the scale does it sit between a honeymoon at one end and a new kidney at the other? Then you work out if there's another way and perhaps even avoid the loan altogether.

Spruceless

Ok, What 3 files are these?

I have a credit card of £4.5k that is maxed out but I have never defaulted, I have a £1,800 overdraft.

It is for immigration, my wife is stranded in another country until I can pay the immigration fees.

[Deleted User]

Experian
Equifax
Call Credit

Having a maxed out card will severely count against you when applying for further credit. Unless it is at 0% interest, it tells the lender than you can't afford to clear a credit card, so won't have any spare funds to pay a loan.

Howe much as you saving each month? How much as you paying off the card each month?

Spruceless

Ok that is very good to know thank you.

I cannot get a credit report from these companies because they say that they can't match my identity. I think this is because of my address problem.

I pay off the minimum for the card.

PeacefulWaters

Pay £1 more than the minimum payment on the card and some lenders may view you as a better risk.

Spruceless

Thanks! Can I pay that extra amount whenever I wish? Or does it have to be at the same time as my normal payment?

MEM62

£10K immigration fees? Really?

Also, if you took on that level of debt would you be able to demonstrate that you could support your spouse. I believe that this still needs to be demonstrated if supporting your spouse's application.

MataNui

Spruceless wrote: »

I cannot get a credit report from these companies because they say that they can't match my identity. I think this is because of my address problem.

This is your problem. Your bank will use its own system for credit scoring which may (probably will) involve also using CRAs. If the CRA is saying it cant match your identity then thats what it will tell any lender. Basically i am amazed your bank even offered you anything. You have absolutely zero chance with anyone else.

In a month or so you should be able to at least get the reports (electoral role will be updated by then). Dont expect your chances of a loan to improve for several months though. Confirmation of identity and residence are the first and most important things any lender will look at.