Struggling to get a loan at a good rate

[Deleted User]

Aran76 said:

I know it can be frustrating being declined when you think you should be accepted, this has happened to me before and in my experience the lender will rarely give much insight into their decision and will point you in the direction of your credit file. The lending criteria varies and I'm sure it is constantly being reviewed by lenders.

You said that you have been applying for loans "across the board" within the last 6 months, are these hard searches? In which case this in itself would be a red flag for lenders as it demonstrates desperation for credit. 

The big positive for you is your £70k salary, which should (depending on your other commitments) put you in a privileged position to drive down your debts and free up more of your earnings.

All soft searches, which is the same information pulled up by hard searches except for the caveat we all know about of course.

hey I really appreciate your response here and believing my story. 

I didnt want to take the news lying down so i just had to dig and dig and call everyone i can to get some idea of whats gone wrong for me.

the reason i make this thread is because the same lender approved me and then denied me despite my situation improving only months apart.

This might sound pompous and i dont mean it in this way but 70k a year to me is useless income if it cant help me get the loan i need because im desperate for it and know i can afford it.

i have all this disposable income and it is not helping me out of the situation im in which calls for a 25k loan at low apr.

even having a great credit file just does little for me right now when i need it the most.

very frustrating.. if only it was july 2020 again for me id get the loan

[Deleted User]

Honestly i come to money saving expert as a last resort after ive exhausted every resource available to me because anytime I make a thread here there is a flurry of toxicity towards me.

whats up with that? Why cant posters be constructive instead of bashing and hurtful.

Take people at their word! If you are missing information then ask for more information dont just accuse the OP of lying.

warby68

After a year long pandemic, its more than likely market risk appetite at the portfolio levels which has changed rather than anything directly about you.
If lending overall is perceived as riskier then the overall price goes up. You can't buy anything at last year's price, its always the one prevailing now.
You can't 100% get to the bottom of it and 'fix' it because you aren't meant to.
£25k is still a significant amount in the unsecured debt market especially if on top of other debt, even if that is not the longer term intention.

[Deleted User]

My recent nationwide loan comes in at 2.9%. I'd say thats pretty good for an unsecured loan. My mortgage rate is 1.74%

I'm not on 70k salary. I wish I was.

The last time I got to speak to an actual human who would make a human judgement about lending me money, it was over 20 years ago, and somehow I got a meeting with the old fashioned bank manager. I don't think that happens these days. I think it was rare back then. But maybe its different if larger sums are involved.

Bottom line, there's some really good loan rates to be had at the moment. If they're not being offered, then there has to be something slightly out of the ordinary. 

lordmountararat

If you're on a £70K income it shouldn't take you very long to save up £25K.

Sncjw

So why did you not take up a loan when you searched for lender the last time? 

CSL0183

What rates are you being offered?

Have you used the loan comparison sites which give you a likelihood score? There’s an MSE comparison along with Moneysupermarket and you can get the same on Credit Karma and Clear Score. 

jjdc

The agents you speak to will have zero knowledge of the algorithms used, only a select few, including programmers and database specialists, will be able to see why, and they aren't public facing. They'll be looking at the computer screen as it says no. And you'll never know the reason why. Cra exist to help identify issues on your file. If you've already done all you can to mitigate problems your end, then the reason for refusal probably lies outside of your control

cymruchris

Adams18 said:

my level of debt was 25 per cent lower when i was denied than when i was approved by them only a few months earlier.

so then whats changed? Absolutely nothing else.

Well there's one minor thing - you still have the debt. Yes it's lower -  but you still have it. The length you've had that debt has become longer with the natural passage of time.

If your debt was £40k before, at the time you'd applied, and say you'd had the debt for 11 months - and now it's £30k and you've had the debt for 14 months - yes it's less! but you might have gone over a threshold for one of the internal scoring markers around length of debt - these are just made up figures obviously - so there's a chance that if your debt was below a certain timeframe - and then exceeded a certain timeframe - that could be something that might make a difference. It doesn't matter that it's 25 percent less - it's still there. 

We are all just stabbing in the dark in terms of how or why it could be - and you'll likely not get to the bottom of it. For the moment you might want to focus on reducing that existing debt - whatever it happens to be - or going for a lower value loan and getting a cheaper car (or not even changing your current car) for a few months longer.

sourcrates

Adams18 said:

Honestly i come to money saving expert as a last resort after ive exhausted every resource available to me because anytime I make a thread here there is a flurry of toxicity towards me.

whats up with that? Why cant posters be constructive instead of bashing and hurtful.

Take people at their word! If you are missing information then ask for more information dont just accuse the OP of lying.

Honest question, with a 70k plus salary, why do you need a loan ?

You must be bringing home 6k a month.