I need a 25k loan, can anybody help?

[unclemark123]

As per title. Just made an on line application with sainsburys and was declined a day later, not even a phone call.The loan was applied for for a car.

To be honest I am shocked. I have 1 btl, and my main home is rented out. These together are currently providing 12k a year profit.

I earn 33k a year self employed (profit) and my wife 8k part time as a receptionist.

We both have good to excellent credit (I have excellent).

Currently living long term with her mother almost free of charge.

We have around 3k a month 'spare', so to be declined baffles me.

[MidlandDan84]

Did you have to enter your monthly budget for items or not? What were the repayments like?

To loan 60% of your total household income seems quite high to me to be honest.

[blindswelledrat]

It can be all kinds of little isms that fk up your credit rating.
I was refused a mortgage years ago, and when I finally found out why, it was a combination of something hugely trivial and a mistake by a loan company.
I would call them and see if you can get more information

[Zippee]

Was this a sole or joint application and how did you show your income? 33k, 41k or 53k? If your sole wage then 25k would (should) be far to high a multiplier. TBH, even a 50% of gross loan is IMHO too big a risk, I'm a fan of sensibly used finance but on your salary is a 25k loan (guessing it's at least a 30k car?) actually sensible?

[172ff]

Are you on the voters roll at the address you applied at?

[Eric Mc]

How did they ask you to prove your income?

[aka_kerrly]

Can I be the first to point out that no one really "needs!" a £25k loan for a car and to have a loan that is more than 1/2 your income does seem a little overboard.

Have you tried signing up for a 30day free Experian trial to get yourself a copy of your credit history to check there are no mistakes.

[BoRED S2upid]

172ff said:

Are you on the voters roll at the address you applied at?

This.

Your living with your mother so that would have looked confusing to the computer which said no. Im sure no human looked at the application. Try going into a bank and seeing a human with evidence of your income and outgoings.

[Soovy]

Main breadwinner is self employed, and no one is lending. lus £25k is a big chunk of your annual income.


Remember all the complaining about "reckless lending"? This is the result.

[unclemark123]

All sorted now, sainsburys passed on my details to another company who will lend. The apr is crappy, but I can and will repay earlier.

We are on the electoral roll so that could not have been the problem, I guess it's a sign of the times of how hard it is to get credit at the moment.

[flyingjase]

unclemark123 said:

All sorted now, sainsburys passed on my details to another company who will lend. The apr is crappy, but I can and will repay earlier.

We are on the electoral roll so that could not have been the problem, I guess it's a sign of the times of how hard it is to get credit at the moment.

Ahhh, the classic bait and switch, glad to see it still works.

[Pete102]

I've just taken out a loan through HSBC (albeit only 7000) and found it shockingly easy, apply online instant decision, 6.9%APR. Im self employed and to be honest I was expecting a bit of a struggle.

[cailean]

Are you really buying a car (depreciating "asset") that costs almost a year's salary?

Lenders also don't like self employed persons, no offense but they think your income can therefore go down and it is harder for them to get comfort that the amount is correct etc.

[anonymous-user]

aka_kerrly said:

Have you tried signing up for a 30day free Experian trial to get yourself a copy of your credit history to check there are no mistakes.

As a point of interest, Experian HAVE to provide you with your credit rating/history report free of charge. The on-line application (where you have to pay for anything more than 30 days access) was a genius idea for them and brings in massive revenue. What they don't tell you is that if you just write to them and ask for a report, they have to give it to you at no cost

[okgo]

cailean said:

Are you really buying a car (depreciating "asset") that costs almost a year's salary?

Lenders also don't like self employed persons, no offense but they think your income can therefore go down and it is harder for them to get comfort that the amount is correct etc.

He doesn't pay a mortgage. therfore his actual disposable is probably sinmilar to someone earning in the 50's, it means nothing unless you know the background.

[surfymark]

Bandit said:

As a point of interest, Experian HAVE to provide you with your credit rating/history report free of charge. The on-line application (where you have to pay for anything more than 30 days access) was a genius idea for them and brings in massive revenue. What they don't tell you is that if you just write to them and ask for a report, they have to give it to you at no cost

I thought they were allowed to charge a small amount for the cost of providing the data?

This link: http://www.experian.co.uk/consumer/statutory-repor... (admittedly from their own site but I couldn't find anything else) shows this as £2. What you are paying for is the monitoring service and them emailing you alerts about your credit report. I have found this very useful in the past but I am about to cancel it.

M

[P-Jay]

Being self-employed is probably enough to get turned down for an unsecured loan from a low-rate, prime supermarket lender.

Did they give you the oppotunity to add all these details in regards to total income / expenditure etc?

I'd say Lombard or secured business finance company would lend you the money based on the information above if the car meets their criteria.