Application for loan rejected

moneysaving_pharmacist

I've just applied for a loan from Sainsburys, with whom I have a savings account, and was rejected :mad:. I earn £48k and wanted to borrow £9k over 36 months to buy a car for my fiancee. I have no rent, mortgage or council tax to pay as my employer provides my accomodation, so my outgoings are low. The only other debts I have are student loan and about £1.5k on a 0% CC. Anyone got any ideas why I was turned down?

Steve

CHR15

Probably because you have no rent, mortgage or pay council tax.

You are invisible to the system so they can't gauge you as a borrower.

moneysaving_pharmacist

CHR15 wrote: »

Probably because you have no rent, mortgage or pay council tax.

You are invisible to the system so they can't gauge you as a borrower.

But I have credit cards, mobile phone contract and an overdraft, so surely would be in the system?

pa49

I think Sainsbury's criteria must have been raised somewhat as a relative of mine finished paying an 18 month loan which was at a very low rate and some short time later applied for another of a similar amount and was refused?????
I believe that their finance side is administered by HBOS so this could have a lot to do with it!
You are not alone.

queen_of_leon

also savings accounts are not taken into consideration when applying for credit as they are not controlled borrowing therefore not on your credit files.

Ivrytwr3

give abbey a try. I am not a customer but still got their 7.9% loan rate on a £3k loan.

Rafter

As others have said - main issue may be your lack of residency - are you on the electoral roll anywhere? do you pay council tax?

HBOS are probably being rather fussy at the moment, given their own problems, so best to try a bank without a funding problem like Lloyds, HSBC or Abbey as others have suggested. It may be that you have to do a 'real world' application so you don't get an automatic 'computer says no' response to your non-standard housing arrangements!

R.