Refused a loan

trev56

I am a little confused and need some clarification. I recently sold my house and now call a narrowboat my home.
i cleared all my debt and of course have no mortgage so of course, Debt free😊.
i have put some money away for a rainy day but was told to keep a good credit rating so I have applied for several loans to purchase a motorcycle and have been refused everywhere I turn.
I run my own business so good for the money as they say.....what have I done wrong?.

Penguin_

Others will be here with more detailed answers but applying for several loans in a short space of time makes you seem desperate for funds in the eyes of lenders.

bradders1983

The three digit score is utterly meaningless, lenders don't see it, so ignore that for starters.

Take a look at the DATA on your credit file. Are debts showing as being satisfied? Has the address updated? Are lenders now taking issue with the fact you now live on a narrowboat? Are you on the electoral roll on this narrowboat? Is there something else lurking on there?

In addition lenders have tightened up their lending of late, I can imagine especially so with the self employed.

poppasmurf_bewdley

Not having a secure base will be a no-no for many lenders.

Would you lend money to someone who could sail away the next day? 

Ebe_Scrooge

In addition to the excellent comments above as to why you may have been refused a loan - I do hope you're not looking to take out a loan purely for the purpose of "keeping a good credit rating" ?  The simplest way of creating/maintaining a good credit history is to use a credit card for everyday spending and clear it in full every month, on time, without fail.  There really is no need to be paying interest in order to keep your credit history up to scratch.

MalMonroe

Why do you want to rock the boat? (Pun intended!)  You have some savings, you have a home and yet you seem very eager to put yourself into debt. It doesn't make any sense. I agree with what Ebe_Scrooge says, use a credit card and clear it in full each month, that does build up your credit history without putting you in a position where you have to repay a loan plus interest.

I think those lenders have done you a favour. Hang on to your money. If you want to buy a bike, use your savings. Or just don't bother. (I wouldn't bother, they're dangerous! Last year my friend's 43 year old brother was killed on one - not his fault but now he has gone and his family's devastated.)

Enjoy yourself, you have no debts and you have your business! Why ruin it all?

DCFC79

Ebe_Scrooge said:

In addition to the excellent comments above as to why you may have been refused a loan - I do hope you're not looking to take out a loan purely for the purpose of "keeping a good credit rating" ?  The simplest way of creating/maintaining a good credit history is to use a credit card for everyday spending and clear it in full every month, on time, without fail.  There really is no need to be paying interest in order to keep your credit history up to scratch.

I think the OP is wanting to buy a bike using a loan and it meant he was fulfilling what he has been told which is to keep a good credit rating.

[Deleted User]

Are you on the electoral register ? if not no chance of a loan i'm afraid.

SeanG79

The reason for the decline (if not adverse credit related) is that you live on a narrow boat. Many lenders will not provide finance if your residence is a boat or a caravan. 

macman

By narrowboat, do you mean you have purchased a fixed mooring with it? Or are you on the move? If the latter, no fixed address, no electoral roll, no credit...

trev56

Thanks for all your help....I’ll keep hold of my money😊