Lloyds Personal Loan

Bubble2012

Evening All
Just wondered if anyone else had fallen foul of the Lloyds mobile banking app and their "Likely" status of being accepted for a Personal Loan.
My Husband and I wanted to borrow an amount of money for some new doors and windows and according to his banking app, we were likely to be accepted for a sum of money over a certain amount of years. So, he applied and was promptly refused.

He has a credit score of 950 according to Experian and substantial earnings. Lloyds are also the bank who his current account is with. Whats the point in giving a status of possible acceptance if it's a complete load of old twaddle thus leaving an unhealthy footprint on his credit file?

Regards
Bubble!

[Deleted User]

Because it's not twaddle, apart from him believing in his credit score but that's not Lloyds fault.

It's a likely acceptance. Not guaranteed acceptance.

There's no unhealthy footprint left. Just a search.

DrEskimo

It said likely, not guaranteed....

If he has substantial savings why borrow money and pay for interest unnecessarily? If you get out the habit of applying for credit when you want to buy things you don't have to ever worry what your credit score is, or how likely an app says you are to get a loan....

Bubble2012

DrEskimo said:

It said likely, not guaranteed....

If he has substantial savings why borrow money and pay for interest unnecessarily? If you get out the habit of applying for credit when you want to buy things you don't have to ever worry what your credit score is, or how likely an app says you are to get a loan....

Sorry...... where in my post did I say substantial savings?

DrEskimo

Bubble2012 said:

DrEskimo said:

It said likely, not guaranteed....

If he has substantial savings why borrow money and pay for interest unnecessarily? If you get out the habit of applying for credit when you want to buy things you don't have to ever worry what your credit score is, or how likely an app says you are to get a loan....

Sorry...... where in my post did I say substantial savings?

Apologies, I misread substantial earnings as substantial savings.

DCFC79

Bubble2012 said:

DrEskimo said:

It said likely, not guaranteed....

If he has substantial savings why borrow money and pay for interest unnecessarily? If you get out the habit of applying for credit when you want to buy things you don't have to ever worry what your credit score is, or how likely an app says you are to get a loan....

Sorry...... where in my post did I say substantial savings?

Heres a question for you.

The money you would use for the loan payments where is it currently, if you currently have it why not use said money. 

JReacher1

DCFC79 said:

Bubble2012 said:

DrEskimo said:

It said likely, not guaranteed....

If he has substantial savings why borrow money and pay for interest unnecessarily? If you get out the habit of applying for credit when you want to buy things you don't have to ever worry what your credit score is, or how likely an app says you are to get a loan....

Sorry...... where in my post did I say substantial savings?

Heres a question for you.

The money you would use for the loan payments where is it currently, if you currently have it why not use said money. 

I’m always a bit confused by comments like this as they don’t make any sense. 

Say the OP wanted to borrow £10k. Just because they can afford the monthly payment for the loan doesn’t mean they also have £10k available. The whole point of loans is to give you a lump sum in advance. 

jonesMUFCforever

JReacher1 said:

DCFC79 said:

Bubble2012 said:

DrEskimo said:

It said likely, not guaranteed....

If he has substantial savings why borrow money and pay for interest unnecessarily? If you get out the habit of applying for credit when you want to buy things you don't have to ever worry what your credit score is, or how likely an app says you are to get a loan....

Sorry...... where in my post did I say substantial savings?

Heres a question for you.

The money you would use for the loan payments where is it currently, if you currently have it why not use said money. 

I’m always a bit confused by comments like this as they don’t make any sense. 

Say the OP wanted to borrow £10k. Just because they can afford the monthly payment for the loan doesn’t mean they also have £10k available. The whole point of loans is to give you a lump sum in advance. 

It makes perfect sense to me. OP wanted a loan, stated they had a good salary but got turned down.
The bank's computer thought they were too high a risk to lend to. The point made is that if you say you can afford £xyz per month for a loan why do you not have that amount in a savings account (not £10k but a an amount equal to say 6 months pay). 

MinuteNoodles

JReacher1 said:

I’m always a bit confused by comments like this as they don’t make any sense. 

Say the OP wanted to borrow £10k. Just because they can afford the monthly payment for the loan doesn’t mean they also have £10k available. The whole point of loans is to give you a lump sum in advance. 

Of course it makes sense. Say the repayments are £200 a month. If you had £200 a month spare you'd have had it sat in the bank or a savings account as you had no use for it. Depending on the length of time you'd had that money spare you'd be building it up at the rate of £2400 a year. If you don't have that sat around it's because you've been spending it so without cutting your spending you won't have £200 a month spare to service a loan.

I don't have substantial earnings, our household income is about £25k net a year yet I'm putting away £1000s a year and have 5 figure bank accounts, 5 figure investments in a S&S ISA and 5 figure SIPP. 2 years ago we had all the windows in our house replaced and other than a small amount on credit card for Section 75 it was paid for in cash. If you have substantial earnings then you shouldn't need to be borrowing £10k.

If you're wanting to be borrowing £10k and flipping your lid because you've been refused it's because you don't have £10k available. That suggests you've been spending pretty much all of your substantial income so will have to cut something. However that alteration of the lifestyle often tends to not happen so that £200 you need to find doesn't get found from a spending cut, it gets found by buying stuff using the credit card and before you know it you're not £10k in debt, you're £15k- £20k in debt, much of it on a credit card with double digit APR.

This board, the credit card, the credit rating board, debt free wannabe board and the bankruptcy board are littered with examples.

Shakin_Steve

So...if you are a high earner, you shouldn't be borrowing money. If you are a low earner, you definitely shouldn't be borrowing money. Borrowing money is only for middle income earners, but only if you can easily afford the repayments, in which case you should have already saved the amount you want to borrow.
I think I've got it. 😂

John_

JReacher1 said:

DCFC79 said:

Bubble2012 said:

DrEskimo said:

It said likely, not guaranteed....

If he has substantial savings why borrow money and pay for interest unnecessarily? If you get out the habit of applying for credit when you want to buy things you don't have to ever worry what your credit score is, or how likely an app says you are to get a loan....

Sorry...... where in my post did I say substantial savings?

Heres a question for you.

The money you would use for the loan payments where is it currently, if you currently have it why not use said money. 

I’m always a bit confused by comments like this as they don’t make any sense. 

Say the OP wanted to borrow £10k. Just because they can afford the monthly payment for the loan doesn’t mean they also have £10k available. The whole point of loans is to give you a lump sum in advance. 

This is true, but they presumably have some savings, as this money should be spare. The point people are making with this sort of comment is that if it’s not so are each month then something somewhere will need to be cut to make the payments in future.