so after deciding to get a £6000 loan to pay off the remaining £1500 on my loan and buy a used car I've been turned down despite earning fairly good money , having no overdraft , a credit card that pretty much every month gets paid off in full and not defaulting on any kind of payments and being in my job for more than four years getting paid directly into my account.
As usual they won't actually tell me why I've been turned down other than the usual "you can apply to the following credit reference agencys" followed by me pointing out that I had checked my one with experian online and the credit score was in the high bracket.
What makes me more annoyed than anything is that they never actually tell you why so you can do something about it!!!!!!
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Had problems before getting loans but always went to my own bank who had a better view of my financial incomings and outgoings and made a decision based on this but they are saying as I haven't been paying my loan for more than twelve months I can't even apply for another , even though as I pointed out to them I had a loan then as it finished I took up another so in reality I've been paying it for two years .
Gonna try to speak to my bank manager but don't hold out much hope
There is a website that does this. Just found it - check it out buckshee:
http://uk.zopa.com/ZopaWeb/
Maybe I'll lend to you ;-
Just made your linky live.
;o)
Looks interesting, Jimmy.
Silly but this is the way of the world!
The difference is that it's members of the public who decide, isn't it?
Oggy:
How do you make links live?
Jimmy see the row of boxes above the comments box, like B for Bold, I for italic etc ...?
Well, go to the 2nd box in from the right, click on it and 'Insert Link' comes up.
Copy and paste your url link into the box. click ok.
Another box comes up - just put anything you want to call it, maybe the name or headline the url refers to.
Okay it, and ..... La voila!
Very simple when you get the hang of it.
PS: Now I just need someone clever to show me how to post pictures .....(!)
Here's a link to a video of our flat burning down in January:
Our flat burning down
cracking idea and when Mr Bloggs fails to make a repayment to Mr Smith can Mr Smith take his house ??
If you go on the forums you will find advice not to lend more than 30 or 40 pounds to one person. There are people who get behind with their payments. Hence the advice to spread your money out as with any investment.
But this is just mental. Same happened to my old duck. I recall when I worked for a High St bank that has been giving you the run around the tale of a young east european who could only get the most basic debit card account because "computer says no" due to his having no credit history in the UK. Thing is that he was pulling in over £5M a year playing for a top premiership team. Funnily enough, he took his business elsewhere.
Sounds like England is becoming like France. Soon you'll be being told off at work for using your initiative.
Also have a look at the MSE website for ways to boost your credit rating eg. maybe apply for a small loan with short repayment period and pay it off promptly.
http://www.moneysavingexpert.com/loans/credit-rating-credit-score
It's already happening. It seems like I'm now regarded as some sort of maverick and renegade.
They can't understand that my guiding thought is common sense and seeing things from the client's point of view.
We tried again with a joint application, waiting to hear back now for the chance to borrow £6,500 at a rate that some Loan sharks might describe as excessive.
You now have it on your record you applied for a loan not that you were declined
Thats a myth - not being able to get credit because you have "no credit history". Some of the banks are now starting to use positive credit history but historically only negative history has been taken into account - missed payments, defaults and judgements.
No credit history means you are clean.
Banks nowadays use credit scoring to decide whether you qualify for their lending products - the criteria for qualification now changes on a regualr basis based upon loss history. If you have personal circumstances which are similar to people who have lost the bank money - you won't get approved. Also if you have a personal poor record - you won't get credit.
In the good times around 60% of people would have qualified for a main stream bank loan now this is likely to be 50% as the bar will have been raised in the current climate. Banks like HFC have a lower bar for qualification and a higher interest rate (but not loan shark high).
The reason a bank uses credit scoring is that personal judgement has proven not to be a good way of assessing risk - bank managers are not good at picking those who will repay from those who will not/can not. Banks play a percentage game - If I lend to 100 people at 10% and 10 don't repay I make no money. If it is fewer I make money and if more I lose money. Therefore you may think there is only a very small chance you won't be able to repay but this small risk may be too high for the bank. Thats why the computer says no the computer is better at making impartial decisions than a bank manager.
One thing which can damage your chances of getting a loan are too many requests for credit. If you are declined by a bank you might want to try one more high street bank or other provider like Tesco finance and then head to a second tier lender like HFC
The money saving expert article above is right in some aspects but is innaccurate in many - it is about profit - if a bank does not make a profit it goes bust and needs tax payers money to support it so banks making a profit is a good thing (they also pay 30% tax and share price and dividends contribute to our pensions). paying your credit card off in full does not make you unnattractive to banks. If you spend money at a shop the shop pays around 2% to the bank for the service of collecting the funds from you - this fee is shared by the card issuer so they make money on what you spend even if you pay no interest.
some Banks are now working at a 70% lend to value so on a £175k purchase they'd need a deposit of £52,500. On the face of it this case seems ridiculous especially when taking into account their earnings. I'd suggest they try HSBC.
Spot on.
I've experienced this myself recently....
It's the only Language these people understand mate, better off doing it in person as well, think you'll find you'll be ushered into a room & they will then get the chance to air your grievance mate!
This NEW Mortgage had nothing to do with the LTV it was a straight decline with no reason given. Shocking really as how do you fix something that you think ain't broke ?
please whisper if you need / want more info
Your information is fed into a computer programme, which just calculates whether your application arbitarily fits within their criteria.
You may easily be able to increase your declared deposit, so need to borrow less - dipping into your furniture or house renovation fund, for example - but you won't be given the chance to be flexible. And once turned down, that lender won't consider you again for an extended period.
Oh for the days when you could simply talk to a real person face to face in your local branch.