Personal loan, rejected for credit, score destroyed...

MrT2018 · 17 September 2018 at 6:42PM

A few months ago I applied for a personal loan because I was inbetween jobs and there was a large gap between pay. Shortly after, I topped up the personal loan by a very small amount and then attempted to again which was rejected. Without realizing that making numerous applications within a short amount of time and having an outstanding debt (I had a repayment holiday of 3 months so haven't made any payments yet) has made my score on multiple agencies go from excellent to the worst possible score.

I know the credit score tends not to be the be all end all but I just tried to buy a new laptop using finance and was rejected which prompted me to check my score.

Not sure what to do... I'm not going to struggle to repay the personal loan at all and can afford all of my outgoing with ease but I've read that making early repayments on my loan isn't going to help.

Will it at least help to make 2 payments a month? Typically how long will it take to repair it credit (the loan is over 36 months)? Will taking out a credit card,making small purchases and paying it off every month be a quick way to repair it?

I prefer buying things on credit because I feel safer making small monthly repayments on things but I'm getting rejected for things now and I'm scared to make more applications.

[Deleted User] · 17 September 2018 at 6:45PM

Ignore the pretend score. Multiple searches don't look good to lenders but it's a short term impact.

If you can make early repayment of your loan, that would obviously be very beneficial, in terms of both saving money and making you look less desperate.

Use of a credit card as you suggest also helps to build a solid credit history.

DCFC79 · 17 September 2018 at 6:48PM

I find buying things with cash or not using finance better, I know its paid for and wont need to worry about a monthly payment being debited each month.

It takes as long as it takes for it to repair. Don't focus too much on your score since only you see it, your credit history is what lenders see.

Ben8282 · 17 September 2018 at 8:56PM

MrT2018 wrote: »

has made my score on multiple agencies go from excellent to the worst possible score.

A bit exaggerated surely. In the absence of late payments, defaults, ccjs etc it is highly unlikely that you have the worst possible score.

MrT2018 · 17 November 2018 at 3:32PM

Sorry to bump this but a followup:

There is a default on my file from a debt collection agency wrongfully attributing a debt to me. I'm in the process of sorting this and I've made another post on here asking for advice. I'm hoping that I can get this default removed because I'm learning to drive soon and wanted a car on finance, can't get the laptop I wanted, won't be able to apply for a mortgage with my partner etc, feel very trapped because of it

[Deleted User] · 17 November 2018 at 3:39PM

Then stick to your one post then

Personal loan, rejected for credit, score destroyed...

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