Refused Loans for no reason! Help

kellbell_3

Hi

I am currently trying to get a 10k loan for a car purchase. I currently have a car finance with Ford which i will be settling in order to purchase the new car, but i am having problems getting one!

I have no credits cards, no store cards and no overdraft. I believe in paying for things with what you have in your bank and did not want the tempation to overspend!!!

I have settled 5 other cars with Fords in the past and have never missed a single payment on these. I also have 2 small loans that are coming to an end which i have also never missed a payment on in my life!

I earn a good wage, 26k a yr and do not understand why i am getting refused.

i still live with my parents as i am saving for a deposit and i have been with my current employer for almost 2 yrs.

I have a new bank account which i have been using for my loan applications, but i have only been with them for 7 months. I have my old account still open which i was with for 15 yrs. Should i be using this bank details to apply??

I do not want to keep getting rejected as this is effecting my credit rating even more.

Will i run the same chance of getting refused if i try to extend my current loan?

It is just so frustrating that i work hard for a good wage, do not owe any money on cards and overdrafts yet i can not be helped!!!!

Thanks

irish_eyes_r_smiling

the problem you have is that you have not had a lot of credit history, creditors don't know what your track record is like paying back the funds.

i'm not saying that is the problem but it's worth a thought!!

might be wrong, am sure someone will be along shortly to give u more help/ advice

get your credit report online for free (1st 30 days) try

www.equifax.co.uk/currentoffer/index.html
or
www.experian.co.uk/creditreport/

all the best!!!!!!!

betti911

Have you checked your credit rating. That would be the first thing I would do before applying for any more loans. There might be a mistake in your credit file.

Rafter

kellbell,

Unfortunately you don't tick a number of boxes used on the scorecards used by loan companies:

You don't own your own home

Short time with current bank

Little history of credit

Extending your current loan should be a lot easier, as will getting one from your bank (or previous bank?)

Remember too that the best buy loans you see advertised are often not available for a lot of consumers and are also heavily subsidised by the rip off payment protection insurance that is sold with them. Simply by saying you don't want insurance seems to get you rejected by some loan companies.

Making more applications right now does make you look like a 'distressed borrower' though, so you will have to wait a couple of months before trying again anyway.

As I said - your best option is to try ford again, or your current bank.

Worth getting a credit card too that you pay off by direct debit each month - at least you will be building up a bigger credit record - and you can even earn good cashback if you get the right card!

Good luck.

R.