Struggling to get a loan at a good rate

[Deleted User]

From the MSE “

My eligibility score showed as 90% - why didn't I get accepted?

Eligibility scores are calculated by our partner firm, HD Decisions (part of Experian). It looks at lenders' criteria for granting new credit, and compare how well you meet those criteria.

A score of 90% means that nine out of 10 people in your situation would be granted that particular card or loan. But, that still leaves one out of 10 people who would be rejected, and - unfortunately - that happened to be you.”

They are partnered with Hd descisions, i got 95 per cent eligibility but still denied on one loan application.

cymruchris

Adams18 said:

From the MSE “

My eligibility score showed as 90% - why didn't I get accepted?

They are partnered with Hd descisions, i got 95 per cent eligibility but still denied on one loan application.

95 percent still means 5 out of 100 don't qualify. There have been cases here on many an occasion where people have been pre-approved and still get declined. 

kimwp

Adams18 said:

kimwp said:

Adams18 said:

BrassicWoman said:

When you apply for a loan, you need to give a reason.

Different reasons have different risk profiles.

That's why it is relevant; if you are not honest about the reason, then it's a fraudulent application.

You can't get reliable advice on half of a story. 

And I gave a reason, and according to the lender that is a valid reason. They only give you a preselected list of reason to choose from, they don't give you a text box to write your entire life story.

I have applied for loans before and got a loan before for my car, not my first rodeo.

I got 15K loan at 2.9% over a year ago.

You wrote about being a two week to update a cv person as an example of someone who likes to properly prepare, yet you (as previously discussed) didn't state background that would help derive the best solutions, didn't state in your opening post that you were trying to understand how to put yourself in the best position for a loan (page 9ish?) and only now mention this existing loan which is very pertinent to the question. It may be worth pondering the difference between quality and quantity. 

But i did mention it earlier?

i mentioner exactly how much is currently outstanding on the loan right now

and how much is on my credit card

My bad, you did indeed detail that on page 6.

BakingC

I may be misreading but I think the issue might be debt consolidation as the reason.

Previously you got your 15k loan for a car no issue, banks like lending for cars it is a physical thing although still unsecured.

At the time you had higher CC balance too. Although on that income could be paying the card and loan off quicker this isn't a budgeting thread.

Debt consolidation reason at the time has your total outstanding debt for the consolidation much closer to the £25k asked for. Now you have nearly paid off your card and the loan is a lower balance.

The lender sees on your application outstanding debt of around £15k but you are asking for £25k for consolidation. That is a much bigger difference than would be accounted for in early redemption fees.

Might be wrong I am not a lender nor do I know internal lending criteria but that maths would put a red flag up for me.

 Debt consolidation is a riskier reason anyway given in many cases it is shown to not work but when asking for much more than your outstanding debt it could be seen as it is just an extra 10k for spending on whatever which is worrying on a relatively high salary when you have plenty of disposable income on paper. 

[Deleted User]

Guys, good news. On my first full application they accepted me for a 20K loan @ 3.1% interest. That was with a 70% preapproval indications on the eligibility check beforehand.

Thank you all for engaging with me on this thread and helping me out I hope to repay many of you in time with help from my own.

This was the lifeline I needed and I am greatful.

Seriously, thank you all that took an interest in my issue and offered your insights I really do appreciate and I hope to give back to the community going forward as a thank you.

[Deleted User]

Hallelujah! 12 pages about not being able to get a loan and then once you actually apply for one you get the amount you need and at a decent rate. A salutary lesson indeed. 

kimwp

Adams18 said:

Sncjw said:

Here's a novel idea.

Why not apply for the loan fully.

If you were that desperate for a loan you would have applied by now.

Maybe because you took out a 15k loan two years ago then you want this large amount is rasing alarm bells.

You won't know fully until you apply for tbe loan fully. 

....
but i made a full application today after seeing 95 per cent eligibility on a loan and i got rejected

so now i have a hard search recorded.

so yeah im desperate and here i am trying absolute best in life to get this loan

But you said this a few days ago?
And now saying this:

Adams18 said:

Guys, good news. On my first full application they accepted me for a 20K loan @ 3.1% interest. That was with a 70% preapproval indications on the eligibility check beforehand.

[Deleted User]

kimwp said:

Adams18 said:

Sncjw said:

Here's a novel idea.

Why not apply for the loan fully.

If you were that desperate for a loan you would have applied by now.

Maybe because you took out a 15k loan two years ago then you want this large amount is rasing alarm bells.

You won't know fully until you apply for tbe loan fully. 

....
but i made a full application today after seeing 95 per cent eligibility on a loan and i got rejected

so now i have a hard search recorded.

so yeah im desperate and here i am trying absolute best in life to get this loan

But you said this a few days ago?
And now saying this:

Adams18 said:

Guys, good news. On my first full application they accepted me for a 20K loan @ 3.1% interest. That was with a 70% preapproval indications on the eligibility check beforehand.

Yeah my second application was for a TSB loan which they declined using the online application and didn't even perform a hard search which I found weird.

I had a 95% preapproval rating for that one. I incorrectly assumed they did a hard search on me at the time, as I thought all full application did so, but turns out they haven't because it is not showing up on my credit file even after 3 days.

This loan I got today was the first app I made.

The_Real_Cheddar_Bob

I'm late to the party but I'm here nevertheless. 
£70k isn't that big a salary. I've earned and do earn much more. What I notice is that when you get above £50k, you get caught quickly in debt. 

Op my advice, if you need to borrow to buy it then, well you fill in the rest. The money telling off section is a couple clicks away. 

If this works for you, pleased you got the result 

kimwp

The_Real_Cheddar_Bob said:

I'm late to the party but I'm here nevertheless. 
£70k isn't that big a salary. I've earned and do earn much more. What I notice is that when you get above £50k, you get caught quickly in debt. 

Op my advice, if you need to borrow to buy it then, well you fill in the rest. The money telling off section is a couple clicks away. 

If this works for you, pleased you got the result 

70k is pretty good for a family, even better for a single person and far above the average.

https://www.ifs.org.uk/tools_and_resources/where_do_you_fit_in

and most people borrow to buy their home, usually they have to borrow more than 25k to do it (I know the OP is borrowing the money to cover his mum's mortgage, but it's the same value of asset being bought).