Refused a loan, can't understand why.
Discussion
Petrus1983 said:
I know someone who took out a tiny mortgage on the home they owned outright as it was such a nuisance every time he went for a small loan or a car loan. Also - get on the electoral roll, that's another massive 'no no' as far as they're concerned.
I've heard that on here before, could pay it off but choose to keep a very small mortgage just for this purpose. It's the one big factor in most credit scores having a mortgage and maintaining payments. I imagine it also annoys the bank especially if the mortgage was tiny. iphonedyou said:
walm said:
That's true all the time. It's how retail banks make money!
OP should pay down the 6k CC debt. Utter madness not to.
Spunking 500 a month on a car (nearly 20% of your take-home income) is also insane, I hope it's something exotic!!
With no mortgage? Don't see 20% as particularly insane (assuming no rent / no saving for a future mortgage.)OP should pay down the 6k CC debt. Utter madness not to.
Spunking 500 a month on a car (nearly 20% of your take-home income) is also insane, I hope it's something exotic!!
I would never spend £6k a year on a car.
And actually, now I think about it, he might just be paying down a short loan which means he owns the car 100% at the end, so we don't know his actual cost of running the car.
In which case, it may be fine.
walm said:
Perhaps it's just the absolute amount.
I would never spend £6k a year on a car.
And actually, now I think about it, he might just be paying down a short loan which means he owns the car 100% at the end, so we don't know his actual cost of running the car.
In which case, it may be fine.
I'm sure it's fine regardless.I would never spend £6k a year on a car.
And actually, now I think about it, he might just be paying down a short loan which means he owns the car 100% at the end, so we don't know his actual cost of running the car.
In which case, it may be fine.
Do get the credit card debt paid off though, OP.
So you essentially want 5k for home improvements if the 11k is to pay off the CC.
Yet you have possibly 15k or so of savings and can bank 1k a month.
Use your savings and replenish over 5 months, it really isn't a lot of time.
Sort the electoral role stuff and get a mini mortgage just to service a debt and look good.
Yet you have possibly 15k or so of savings and can bank 1k a month.
Use your savings and replenish over 5 months, it really isn't a lot of time.
Sort the electoral role stuff and get a mini mortgage just to service a debt and look good.
Ring them up and ask them. They have to tell you the reason why they've declined you. They have to tell you specifically why they declined you and offer a right of appeal. If it wasn't declined by a person then ask for it to be manually assessed. They should also tell you what you need to change in order for them to approve. (FCA requirement - assuming you are in England).
Pound to a penny, it's a system decline and will be agreed when someone looks at your circumstances.
Pound to a penny, it's a system decline and will be agreed when someone looks at your circumstances.
Beetnik said:
Ring them up and ask them. They have to tell you the reason why they've declined you. They have to tell you specifically why they declined you.
No they don't............they will tell you that you never passed their internal scorecard and to check your credit file.....they WON'T say to you "We don't like the fact you have no mortgage, are not on the electoral roll etc etc"....IMO, having worked for a long time in this field, it's the level of debt you have right now.
Sure your income is good and you can afford the car, credit card and this new one. The problem arises in how much money you actually owe.
Your car, you say is £500 per month. Let's assume it's a PCP with 3 years left and a balloon payment at the end of £15k.
The bank see this as £33k debt on the car, total £39k. Then you want 11 more so you'd have £50k of unsecured debt on a £45k salary, which is bad...
Sure your income is good and you can afford the car, credit card and this new one. The problem arises in how much money you actually owe.
Your car, you say is £500 per month. Let's assume it's a PCP with 3 years left and a balloon payment at the end of £15k.
The bank see this as £33k debt on the car, total £39k. Then you want 11 more so you'd have £50k of unsecured debt on a £45k salary, which is bad...
Regarding the electoral role, I wasn't on it at my new address, lived there since September last year. Had the notification through from the electoral joint valuation board (or whatever their official title is) that as of 1st April I am now on it at my current address.
Experian still says not on the electoral register, is this just a case of it taking time to filter through or am I going to have go pestering people to get it rectified?
Experian still says not on the electoral register, is this just a case of it taking time to filter through or am I going to have go pestering people to get it rectified?
emicen said:
Regarding the electoral role, I wasn't on it at my new address, lived there since September last year. Had the notification through from the electoral joint valuation board (or whatever their official title is) that as of 1st April I am now on it at my current address.
Experian still says not on the electoral register, is this just a case of it taking time to filter through or am I going to have go pestering people to get it rectified?
Yes, often takes a month or two for the local authorities to provide the new data to the credit referencing agencies...Experian still says not on the electoral register, is this just a case of it taking time to filter through or am I going to have go pestering people to get it rectified?
arkboy said:
Hello I'm a long time lurker.
I've just been refused an £11,000 loan and I'm not sure why.
I have a reasonably well paid job, which is as secure as any job can be. Gross 45k a year. I owe about 6k on a credit card and a car Finance deal which is about 500 a month.
I'm coming clear every month once bills are paid with getting on for £1,000
I've got modest savings and I never exceed overdraft limits.
I make more than the minimum payment on the card.
I own my own home, no mortgage it's mine.
I have had loans in the past with my bank, all paid back properly.
My Experian report says my credit rating is more or less as high as it can be.
For some reason I am listed as not on the electoral roll. I am now and I have been at this address before. Lived at this address 4 years, the one before six, and before that 10-plus.
The purpose of the loan was home improvement and to clear the card and was prompted by my bank sending me out blurb inviting me to apply as a valued customer preferential rates etc etc.
So what have I done wrong? More importantly how do I fix it?
http://www.aboutmyvote.co.uk/register-to-voteI've just been refused an £11,000 loan and I'm not sure why.
I have a reasonably well paid job, which is as secure as any job can be. Gross 45k a year. I owe about 6k on a credit card and a car Finance deal which is about 500 a month.
I'm coming clear every month once bills are paid with getting on for £1,000
I've got modest savings and I never exceed overdraft limits.
I make more than the minimum payment on the card.
I own my own home, no mortgage it's mine.
I have had loans in the past with my bank, all paid back properly.
My Experian report says my credit rating is more or less as high as it can be.
For some reason I am listed as not on the electoral roll. I am now and I have been at this address before. Lived at this address 4 years, the one before six, and before that 10-plus.
The purpose of the loan was home improvement and to clear the card and was prompted by my bank sending me out blurb inviting me to apply as a valued customer preferential rates etc etc.
So what have I done wrong? More importantly how do I fix it?
Twin2 said:
IMO, having worked for a long time in this field, it's the level of debt you have right now.
Sure your income is good and you can afford the car, credit card and this new one. The problem arises in how much money you actually owe.
Your car, you say is £500 per month. [b] Let's assume it's a PCP with 3 years left and a balloon payment at the end of £15k.
The bank see this as £33k debt on the car,[/b] total £39k. Then you want 11 more so you'd have £50k of unsecured debt on a £45k salary, which is bad...
What would they see a lease as, just the outstanding payments? Also, what kind of unsecured debt/salary ratio are they OK with?Sure your income is good and you can afford the car, credit card and this new one. The problem arises in how much money you actually owe.
Your car, you say is £500 per month. [b] Let's assume it's a PCP with 3 years left and a balloon payment at the end of £15k.
The bank see this as £33k debt on the car,[/b] total £39k. Then you want 11 more so you'd have £50k of unsecured debt on a £45k salary, which is bad...
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