Looking for advice applying (young adult)

HG1997

I am currently trying to apply for a loan of £10k to repay over 2 years. However, I tried my bank at first and the lowest APR rate they could offer was 14.9% which I did not want to accept.

I am 21 years old and believe I have ‘thin credit’ so it’s not bad I’ve always paid things well (phone bill and £300 finance from curries) but apparently I haven’t borrowed enough to show how well I can pay it back.

I have found places such as Zopa and M&S who offer a soft search as I’m careful not to affect my credit score and they are offering between 2.9% and 5.8% which I prefer however this is subject to approval which I’m worried I won’t be accepted for as I have only borrowed very little.

I’m on the electoral roll, I have paid my phone bill for 3 years and borrowed the £300 from curry’s (6 months 0% interest rate and I paid before the 6 months were over). I have tried websites such as credit score and Noddle where my credit score is described as good to excellent and above average for my area and they suggested applying with AA or the Post Office however when I do the soft checks for these companies I have been given a 6/10 chance of acceptance.

Would anyone have any advice or providers they’ve been with in and accepted in the same position?

stevenhp1987

What is the £10k loan for?

Could you not save up money from work instead? Could you cut down on non-essentials to help raise the £10k quicker?

[Deleted User]

Ignore all of your made up credit scores from the CRAs. None of them will be lending you money any time soon.

The eligibility checkers will give you best view of your likelihood of acceptance, but they are far from guaranteed.

You're going to struggle to get a decent rate with such a thin history.

As above - what is it for? And what do you earn?

PeacefulWaters

Radical thought, save up?

smithers1981

Save up would be my advice.

One more application worth ago look at eligibility checker and pick one of most likely.

dresdendave

If you are looking to build a credit history, i.e. show prospective lenders you are responsible with money, the cheapest option is to get a credit card. Use it for a nominal amount each month and always pay off in full. Never withdraw cash or go over your limit. You won't pay a penny in interest and each month you will be getting green ticks on your credit history.

Let us know the purpose of your desired loan and people may offer alternative options. If you can live your life without borrowing, perhaps with the exception of a mortgage, you will save yourself a fortune.

Don't be tempted to purchase things on credit just because everyone seems to be doing it.

DCFC79

HG1997 wrote: »

I am currently trying to apply for a loan of £10k to repay over 2 years. However, I tried my bank at first and the lowest APR rate they could offer was 14.9% which I did not want to accept.

I am 21 years old and believe I have !!!8216;thin credit!!!8217; so it!!!8217;s not bad I!!!8217;ve always paid things well (phone bill and £300 finance from curries) but apparently I haven!!!8217;t borrowed enough to show how well I can pay it back.

I have found places such as Zopa and M&S who offer a soft search as I!!!8217;m careful not to affect my credit score and they are offering between 2.9% and 5.8% which I prefer however this is subject to approval which I!!!8217;m worried I won!!!8217;t be accepted for as I have only borrowed very little.

I!!!8217;m on the electoral roll, I have paid my phone bill for 3 years and borrowed the £300 from curry!!!8217;s (6 months 0% interest rate and I paid before the 6 months were over). I have tried websites such as credit score and Noddle where my credit score is described as good to excellent and above average for my area and they suggested applying with AA or the Post Office however when I do the soft checks for these companies I have been given a 6/10 chance of acceptance.

Would anyone have any advice or providers they!!!8217;ve been with in and accepted in the same position?

Easch persons circumstances will be different so cant see anyone will be able to suggest a lender to try.

Why is it you need the money ?

Can you not save up what you need ?

Do you rent, live with parents ?

If you live with parents your ooutgoings should be really low, cut back on anything you can and save up.

Maybe you need to accept over 2 years might be a stretch but over a longer period might work.

Remember, your credit is only seen by you, your credit history is what is important.

19lottie82

Lenders only need to offer these advertised rates to 51% of applicants, so you’re by no means guaranteed them.

What’s your annual income?