Trying to get a loan...

165721

I am trying to get a loan, but Ive been refused one or two (which have gone to the underwriters). I am a student on a guaranteed income of £10500 tax free increasing by £1500 a year, and I have a good credit rating I believe, all bills paid on time by DD, no arrears etc. What is my best option if the underwriters come back with a negative. Should I reapply as a joint application (partner earns £11500), or shoudl I go elsewhere or should I sell a kidney? Any advice welcome!!

jonesMUFCforever

There is a lot you don't say!
The loan you have applied for - is it with your own bank?
How many applications and in which timescale?
How much of a loan are you after? and for what purpose?
You state that you are a student with a guaranteed income of £10500 - can we have a little more detail? Are you post graduate etc??
Have you considered an alternative to a loan like a 0% credit card or a low for life balance transfer card?
If all else fails I do not see why you should not apply in joint names, but a lot of banks will only lend personal loans in sole names.
Eric

165721

Thanks for the reply. I will try to answer your questions, hope they help!

The loan I have applied for is the Egg Flexible Loan, I am a credit card and savings account holder with them and have been a customer for 6 years. I have made three applications in around two weeks, this one, one with cahoot and one with northern rock. I am looking for £5,000 for a car upgrade. I am a first year postgrad student on a studentship (tax free) of £10,500 increasing by £1,500 a year. I already have 0% credit cards (Egg and Halifax) which I move a debt around which amounts to £2500 and which is decreasing. I have sent my Egg application to the underwriters with these details and details of my partners income.

I think I have a good credit rating, and it seems that the word student scares them all off, even though if I was working and taxed I would probably have less security and be on around £14,000, well above theimum threshold.

So waddya think!?

jonesMUFCforever

I think you may be right the word student may have spooked them.
Lets hope the underwriters give you some good news.
Eric

WSO

I found the underwriters at Egg to be extremely helpful and understanding when I wanted to extend my loan from £7,500 to £15,000 (had it about 2 months, paid around £2,000 off in that time). I had a Boots Advantage Credit card, which has transformed to Green and then Blue Egg cards (so been with them about 3 years at the time).

Even though I had asked for almost 95% of my salary (about 50% joint) as well as applying for a mortgage of £96,000 a month earlier, a single 15 to 20 minute phonecall got me a decision in my favour there and then. We wanted the extra money to help pay for repairs and furniture for the new house, I needed to give my details twice (once for application and once for underwriter) and explained where the overpayments came from (just spare cash, the flat was cheap to run) and that was it...

As it happens, the original house fell through, we found a cheaper house needing no work so we had the extra money sitting in our ISAs until we were ready to get the furniture months later. It is a nice feeling to live in a newly decorated house with mostly new furniture (well it would have been bare otherwise as we went from a 1 bed flat to a 4 bed house)...

I suggest you give Egg a call, you will get your decision quicker and you will have the opportunity to expand on what you wrote - you might tell them something you think wasn't important but will help you case simply by chatting about it.

I think if anything, your major problem isn't being a student (since you have an income), it's more likely the fact that you appear desperate for the money - 3 loans in 2 weeks is a lot...

165721

Not desperate exactly, just need the money. Do people normally decide they need a loan then decide they don't if they don't get a loan first time?! Hey I hadnt applied for any when I applied for the first loan now had I!!

I will try the calling them thing, hopefully it will work. Thanks for the help all!

WSO

Actually, it really depends what you want the loan for - I've been refused a loan twice in the past year... didn't really need it, just trying to get a better rate than my 6.9% so didn't persue it again straight away. Don't know if that's normal or not, but I don't like damaging propective credit more than I have to.

But I see your point that if you need it for a car or something more pressing you would keep trying. However each of those searches on your credit record is a hit you can do without, particularly if you were turned down so I feel you are doing the right thing by trying to "chat" to the underwriters.

165721

Thanks, yes it is for a replacement car. Thanks again for the advice. Should I just call the loans number and ask to speak to someone in the Underwriting team, or is there a special number available?

WSO

The number I got was from a flyer they sent, I assume it was either customer services or the new loan department. Anyway, they put me through to the underwriters when they said there may be a problem - so I don't really think it matters who you phone as they should be able to put you through, just remember to have your details handy.

165721

They said no. They said I couldnt afford it because they wouldnt take into account a £300 a month casual income on top of my income. Should I make another application as a joint one (she said as my partner was not an egg customer she could not guarantee that they would even look at it!) which would increase the monthly incomings to the household?

She suggested trying HSBC (looks like 7.9% for a graduate loan, or 14.9% for the flexi loan (simliar to cahoot's but more expensive), or about 13.9% for a normal loan) as I have my current account with them. Should I try the egg joint application first or just go to HSBC? Which is the best option in terms of credit searches, etc., and future credit? The egg rep told me it wasnt anything to do with adverse credit.

Hope you can help, my hair is rapidly turning grey.

Jack

WSO

Sorry to hear that you were turned down, I know how frustrating it is to hear that they say you can't afford it when you know they aren't even taking into account your partners income (and are probably assuming you pay all the bills too).

Perhaps I got lucky or it was the fact I had some previous loan history with them when I extended - but the loan is purely in my name... I don't recall them asking about the OHs income etc (perhaps they did), but the only connection with Egg he has is as second card holder. They must have taken his details into account at some point because there is no way I could afford to pay the mortgage, the loan and my student loan (which I still don't have to pay back btw as it's mortgage style, I do because I want rid of it) on my wage only.

Are you both financially associated with each other on your credit reports?

Well, at least you know it isn't because of adverse credit, and you don't have to wait for them to contact you for a decision now... given how HSBC offer their mortgages on an affordability basis (knowing you weren't turned down for adverse credit), perhaps they would offer loans on the same premise. I would think they are your safest option at the moment, and you should be able to talk to someone face to face if you feel it would help your case.

Good luck!