Too new for loan

incantano

Hello,

I have a question regarding taking a loan in the UK, maybe someone here could help me.

I have been relocated from the Netherlands to London in April 2017. I am with my company for almost 3 years, but only 9 months in the UK. In May (immediately after moving) I have opened a current account with Nationwide. Now unexpectedly I need to take a loan of 2000 pounds. Due to my short credit history, Call Credit shows my rating as poor, Experian as fair. I have been refused the loan with my bank (Nationwide, uses Call Credit), Tesco Bank and M&S Bank (Experian).

I have looked into Bad Credit loans, but because of my relocation I do not know anyone in the UK who could be my Guarantor. And without it the interest rate is ridiculous.

I have an indefinite contract with my company, work full time, my gross annual income is 31k. I have no debts, no credit cards and no other loans.

Could you please advise what can I do in this situation? I know increasing my credit score is a solution, but it takes a lot of time - I have applied to be added to the electoral roll, but it takes up to 6 weeks to update the profile at the credit agencies.

Many thanks is advance for your help.

dawyldthing

What do you need the loan for? You'd be better saving up and paying it in cash tbh

Candyapple

You have 4 choices.

1. If you earn £31k, your take home pay is £2k per month. Just save £1k for the next 2 months.

2. Ask Nationwide for an overdraft. Although given you!!!8217;ve had 3 hard searches done already, my guess is you might not be successful.

3. Get a second job/ask your employer for a loan

4. Sell something of value

Just so you know, credit scores are meaningless in the U.K. and also an update to the electoral roll can take 2-3 months, not 6 weeks to be reflected on your files.

Dobbibill

If it's a real need rather than a want, could you ask anyone back at home in the Netherlands - a payment from them would reach you in a few days.

DCFC79

OP I see some of the points I was going to make have already been answered.

Welcome to the forums and to the UK.

Use the time to look at your spending and cut back. I don't know if this is easy to do when living in London. Cut back on luxuries might be a start.

PeacefulWaters

Have (and can) you registered to vote?

Ebe_Scrooge

I think you'll struggle to obtain a loan from any of the mainstream lenders, due to your very limited UK credit history and residence. And I would urge you to steer clear of the sub-prime lenders - as you've already discovered, their interest rates are eye-watering.


As Dobbibill says, could you ask friends or family to help out ? Failing that, it may be worth approaching your employer. Depending on the reason for the loan, they may well be able to offer you something. I know many employers, for instance, offer season ticket loans to their employees.

incantano

Thank you all for the tips - the money is needed to pay for an emergency dental job I've had back in the Netherlands, the bill has just came through (healthcare in the NL is half private). My family is not very wealthy so I was hoping to resolve this matter myself.

My company doesn't really help in these kind of situations (know for a fact as I am doing HR for them). The deadline is 15th March, so I have got around 3 weeks to figure something out. I will talk again to Nationwide on Friday, presenting the Call Credit report, I hope this will help.

Meanwhile, if anyone has got any other ideas, it'd be highly appreciated, many thanks

enthusiasticsaver

Does the Netherlands dentist not do any payment arrangements?

Applying for loans and being refused as you have done a few times will make your credit rating and history worse. You say you have no credit cards and in fact this works against you as you have no history of handling debt responsibly. Can you try the soft eligibility checker on here to see if a credit card would be open to you?

I think you will struggle to get loans over here as you have only recently moved over. Being an overseas national will also affect your application as will not having any existent credit. Taking out a high interest loan due to short credit history would be a mistake.

Candyapple

incantano wrote: »

I will talk again to Nationwide on Friday, presenting the Call Credit report, I hope this will help.

By the way, Nationwide don't solely just use Call Credit. They also use Equifax and Experian.

Showing the bank staff your credit file is not going to help you in any way unfortunately. Bank staff are just glorified sales reps for the most part and won't be able to change any decision a computer makes.

If you want to see if you can get a Nationwide overdraft all you need to do is log into online banking:

1. Select 'View accounts'
2. Select your current account.
3. Select 'Overdraft options' from the View accounts menu on the left side of the page.
4. Follow the on-screen instructions.

If it's a no go, then there's nothing you can do at this point in time. No point wasting your time going to the bank to try and overturn the decision as their decisions are based on data from the monthly credit reference agency feeds.

If you don't have the money in 3 weeks time, realistically what can the dentist do?

If you can't get an overdraft, can't borrow money from friends or family then quite literally you need to save as much as you can from your February salary and ask the dentist as a goodwill gesture if you can pay in instalments and offer them £700 as a start. Even if it took you 3 months paying £700 a time, the dentist would more than likely be acceptable of that rather than trying to take it court/adding on legal costs.

foxy-stoat

Credit card with a money transfer option?