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Struggling to get a loan at a good rate
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-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.
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.0 -
Billy_B_North 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.
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
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.0 -
Billy_B_North said: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.
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 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 me0 -
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.
ill have to wait and see if lending criteria changes again for my favour1 -
lordmountararat said:If you're on a £70K income it shouldn't take you very long to save up £25K.
need the money now not later and more than happy to pay a premium of 2500 in interest for this facility0 -
Adams18 said:Billy_B_North 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.
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
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.3 -
sourcrates said: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.
You must be bringing home 6k a month.
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.0 -
Billy_B_North said:sourcrates said: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.
You must be bringing home 6k a month.0 -
sonofmerton said:sourcrates said:Honest question, with a 70k plus salary, why do you need a loan ?sonofmerton said:sourcrates said:Honest question, with a 70k plus salary, why do you need a loan ?
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 span0 -
DCFC79 said:Adams18 said:Billy_B_North 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.
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
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.
despite my wonderful credit file and loads of disposable income each month that does nothing for me now when i need it the most.0
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