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Struggling to get a loan at a good rate

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  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Fourth Anniversary 100 Posts Name Dropper Combo Breaker
    edited 5 April 2021 at 5:23PM
    -taff said:
    So your credit utilisation is at 24 percent? Net that's roughly 12 and half, add 25 grand to that and you're over half your wages in debt so 37 ish grand owing on a net take home of about 50. That is why you're being rejected. Companies don't care how good you look in your own head or on CRA paper. There is nothing you can do about this except reduce your current debt and make sure it's all paid on time,including any bills you might pay manually instead of direct debit.
    Thanks for your reply, as I have stated several times that is not the case as the same lender accepted me when I had higher levels of debt and a slightly lower income.

    my debt to income ratio is perfectly fine imo as it is a ratio of your monthly expenditure on debt repayment against your monthly income.

    Some lenders take gross some take net... eitherway im at a healthy average even if I took out a 25K loan today over 5 or 7 years


    the bottom line is the lender was perfectly happy before when i was in a worse situation with my debt level and income.
  • Adams18 said:
    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
    It sounds like you have no savings, which is surprising, what was behind your decision to spend everything that you earn?
    It is completely irrelevant my savings, the only thing that is relevant is that I need a 25K loan now..

    I can perfectly afford it

    ive got perfeft credit history never missed a oayment and ive made 177 payments out of 177

    never been late

    and a lender was willing to give me 25K in august 2020 when i had HIGHER amount of Debt and LOWER INCOME

    but suddenly now they changed their mind despite reducing all my debt by 25 per cent and earning more money per year.
  • 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.
    I think it’s because you’ve quite a bad attitude, and react aggressively. You also seem to make things up, which never helps.

    If lenders are starting to be reluctant to lend to you it suggests that you’re coming to the end of the road for cheap credit and that you need to learn to live within your means, and stop borrowing money. Why the need for the loans; did you spend the money on something that you can sell?
    I respond in an aggressive manner when others are aggressive to me.

    i wont lie down and let someone belittle me for no reason.

    and i fully guarantee you woudnt act this way with me in real life

    for some reason you have happy being aggressive behind your computer screen vut would never approach a stranger the same way in real life hence you are fake

    i  am the same online and in real life if someone comes with a problem i give them benefit of the doubt.. has to be some level of trust in order to provide help and be constructive 
     
    so PLEASE tel me what you THINK I have made up in anything ive said ??

    i couldnt care less either way just curious with what nonsense you will bring this time

    as far as i know ive been very truthful on everything and thats enough for me
  • warby68 said:
    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.

    Solid points, im just annoyed i was late by a few months with loan applications despite improving my situation financially and with my credit file.

    ill have to wait and see if lending criteria changes again for my favour
  • If you're on a £70K income it shouldn't take you very long to save up £25K.
    Well the point of credit cards mortgages and loans are now obsolete with that thinking!!!

    need the money now not later and more than happy to pay a premium of 2500 in interest for this facility
  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Adams18 said:
    Adams18 said:
    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
    It sounds like you have no savings, which is surprising, what was behind your decision to spend everything that you earn?
    It is completely irrelevant my savings, the only thing that is relevant is that I need a 25K loan now..

    I can perfectly afford it

    ive got perfeft credit history never missed a oayment and ive made 177 payments out of 177

    never been late

    and a lender was willing to give me 25K in august 2020 when i had HIGHER amount of Debt and LOWER INCOME

    but suddenly now they changed their mind despite reducing all my debt by 25 per cent and earning more money per year.
    The lender is able to change the criteria and you just dont fit the criteria.
  • 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.
    6k a month??? Lol

    No way


    have no idea how you calculated that but no where near.


    70K gross income before tax and before student loan where i pay more .. the more i get paid... like 400 a month just for student loan


    For reasons id rather not get into, i need the money now rather than saving it up which would take me over a year.

    and i cam afford 330 to 450 a month paying a loan.

    thats not a problem for me at all.
  • 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.
    Wages are taxed in the UK; £75,000 per year gross is a net £4,300 per month.
    Then there is student loan so add another 500 off that figure as it is related to how much you earn if your are on payment plant 1 like me
  • Honest question, with a 70k plus salary, why do you need a loan ?
    because people live to their means. our neighbour earns over 200k a year but he still got a loan for his house extension. but then he does drive a brand new bmw x2, his kid is in private school and his wife has more online deliveries than the entire street combined. 
    Honest question, with a 70k plus salary, why do you need a loan ?
    because people live to their means. our neighbour earns over 200k a year but he still got a loan for his house extension. but then he does drive a brand new bmw x2, his kid is in private school and his wife has more online deliveries than the entire street combined. 
    I actually live fairly frugally and hence havelots of disposable income.

    my father passed away and i need to pay a mortgage he left behind so my mum can keep her house.

    so im trying to raise a lot of cash to do that.

    i dont know im being pressed so hard for my reason to get a loan

    why does it matter

     i need it and i can afford it and my credit history is great, ask me what my red flags are on my credit file.

     I can afford 330 to 450 a month on a 25K loan

    and i will HAPPILY pay 2500 pound interest to have this 25k now instead of saving up for a year


    why is this a problem in everyones eyes?

    its not my first time taking credit, ive made 177 credit payments on time every time throught my 32 year old
    life span
  • DCFC79 said:
    Adams18 said:
    Adams18 said:
    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
    It sounds like you have no savings, which is surprising, what was behind your decision to spend everything that you earn?
    It is completely irrelevant my savings, the only thing that is relevant is that I need a 25K loan now..

    I can perfectly afford it

    ive got perfeft credit history never missed a oayment and ive made 177 payments out of 177

    never been late

    and a lender was willing to give me 25K in august 2020 when i had HIGHER amount of Debt and LOWER INCOME

    but suddenly now they changed their mind despite reducing all my debt by 25 per cent and earning more money per year.
    The lender is able to change the criteria and you just dont fit the criteria.
    I understand that now, and I believe this is the likely reason im now getting denied.

    despite my wonderful credit file and loads of disposable income each month that does nothing for me now when i need it the most.
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