Unlikely to get a loan despite excellent credit and no debts

LightbulbFlashing

Hi all,

I am looking to take a personal loan out to buy a car (£8k). My aim is to fully own in 24 months. I earn £55k pa, and have no debts. My wife earns 22k and has no debts. I pay off a credit card each money - it’s never more then £200 and it’s to accrue points. 

I tried to take a loan out and was shown as unlikely. I queried this with the bank as they were offering me up to £35k in August! They said it would be a credit issue.

I am showing as Excellent on my credit report with trans union. There were no fraudulent activity or Surprises. 

I recently took out a home improvement loan for £3k in Sept and then smashed it - it’s paid off already in 2 months. My credit report still shows it! 

I called the bank again and they said I will have to wait as there is a credit market against me name, acknowledging that I was in good shape financially! They can see my incomings and that I never even go into my overdraft. 

They said come back in Dec and see, as it needs ‘updating’. However I would like this new car now, as my wife’s car is due for MOT etc in Jan and what to get rid before then.

And yet some people have been able to take loans of debts and loans out, and get massively in debt. I can’t believe that a human cannot make this decision. It really is a ‘computer says no’ job!

anyone have anything similar?

emmajones1976

You may have no debts, but what is your disposable income? Are you mortgaged to the hilt?

LaHostessAvecLaMostess

I don't see why the need to go with this particular lender.  Why not just find a different lender?

[Deleted User]

Check your other files, not just TransUnion. Also check your wife's, assuming you're financially associated. 

If you have nothing adverse on your files (look at the data, not the scores), it may simply be a case of tightened criteria. Your quick repayment of the previous loan also means that you would be an expensive customer to service, compared to the profits that could be made elsewhere.

Equally, another rapid need for a loan may raise an eyebrow. They might be wondering why you're not able to use savings.

LightbulbFlashing

emmajones1976 said:

You may have no debts, but what is your disposable income? Are you mortgaged to the hilt?

I have around £500-700 disposable income after everything (bills, groceries etc). It has gone up as I am not laying any loans off. My mortgage is £187k for a £355k house.

LightbulbFlashing

LaHostessAvecLaMostess said:

I don't see why the need to go with this particular lender.  Why not just find a different lender?

It’s with my bank. I am scared to apply formally as it will impact my credit score, and at least with them I could do a soft score and check. Another lender won’t be able to see my incomings and full picture and just push a button

emmajones1976

LightbulbFlashing said:

LaHostessAvecLaMostess said:

I don't see why the need to go with this particular lender.  Why not just find a different lender?

It’s with my bank. I am scared to apply formally as it will impact my credit score, and at least with them I could do a soft score and check. Another lender won’t be able to see my incomings and full picture and just push a button

Well they would, as you tell them during the application.

LightbulbFlashing

Deleted_User said:

Check your other files, not just TransUnion. Also check your wife's, assuming you're financially associated. 

If you have nothing adverse on your files (look at the data, not the scores), it may simply be a case of tightened criteria. Your quick repayment of the previous loan also means that you would be an expensive customer to service, compared to the profits that could be made elsewhere.

Equally, another rapid need for a loan may raise an eyebrow. They might be wondering why you're not able to use savings.

Done already - my data is all green ticks, the only incorrect info is it shows I have a £4K loan out, which I don’t - I paid it off super quickly to avoid me paying stacks of interest 

LightbulbFlashing

emmajones1976 said:

LightbulbFlashing said:

LaHostessAvecLaMostess said:

I don't see why the need to go with this particular lender.  Why not just find a different lender?

It’s with my bank. I am scared to apply formally as it will impact my credit score, and at least with them I could do a soft score and check. Another lender won’t be able to see my incomings and full picture and just push a button

Well they would, as you tell them during the application.

Yes, but my bank said that it would likely be refused by others too. 

[Deleted User]

Can you not just take it out of your savings? With north of £700 a month left over, you should be in a decent place.

You can then rebuild your savings with the money you're not wasting on the loan.

LightbulbFlashing said:

» show previous quotes

Yes, but my bank said that it would likely be refused by others too. 

The only reason for your bank to say that with any confidence would be if you had a CIFAS marker or similar. 

LightbulbFlashing

Deleted_User said:

Can you not just take it out of your savings? With north of £700 a month left over, you should be in a decent place.

You can then rebuild your savings with the money you're not wasting on the loan.

LightbulbFlashing said:

» show previous quotes

Yes, but my bank said that it would likely be refused by others too. 

The only reason for your bank to say that with any confidence would be if you had a CIFAS marker or similar. 

Ok, I will double check. I have had it confirmed there is no sus activity on my account and have checked. I will call them all in the week. I can only imagine it must look odd that someone has taken out a loan and paid off quickly?