Resolved Question
What Are My Options for a Loan Now ?
My partner & I just got our first flat together , as we are expecting our second child , but as you can imagine , Furnishing the flat is pretty difficult . We had a look at our ins & Outs and know we can afford a loan - to buy everything we need eg washing machine , cooker etc. Only problem is neither of us have any credit - resulting in low credit scores . We have only ever bought which we worked for in the past. Now im a housewife , so we went to my partners bank + asked about a loan - we thought this would work as he had been with them for 7 years and they know his account is always managed properly , but were declined . Can anyone help on what we can do now ? we have both checked our credit reports to make sure there was nothing on them that would affect this , and that's exactly whats affecting it .. having nothing on it . HELP ! ..
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UK Answer:
You have three possiblities as I see it.
First off, you should pop into a branch of the bank that declined you and ask them to refer the application to a loans underwriter. Depending on the bank this should take between a couple of hours and a couple of days. Factors including the length of time at your address and whether you are registered on the voters' roll can affect your credit score, but shouldn't prevent you from obtaining credit if your other account relationships are OK. Sometimes all it takes is for the banks' underwriters to look at the applications rather than they be turned down by computer-scoring. There may have even been an issue with the application - perhaps the branch didn't enter a full three years address history onto the computer when applying, for example. Your own bank should always be one of the most likely to accept an application as they have a lot more information to go on than your credit score, such as a history of how you conduct your other accounts.
Second option, you could try Zopa, a UK service that matches people wanting to lend money with people wanting to borrow it- and getting great rates for both parties. http://redo.me.uk/zopa They have a special market for young people that specifically caters for people with no/limited credit profile. Failing that they also have a listings system where the decisions are ultimately made by the lenders themselves.
Third option - and I think this isn't the best option, is to go for a bad credit lender like Provident. However I don't see why you should have to do this as you'll pay a lot more interest for something you should be able to obtain at a lower rate anyway. But on the plus side, you are sure to get accepted - http://redo.me.uk/provident
So get down the bank and get it sorted!
You have three possiblities as I see it.
First off, you should pop into a branch of the bank that declined you and ask them to refer the application to a loans underwriter. Depending on the bank this should take between a couple of hours and a couple of days. Factors including the length of time at your address and whether you are registered on the voters' roll can affect your credit score, but shouldn't prevent you from obtaining credit if your other account relationships are OK. Sometimes all it takes is for the banks' underwriters to look at the applications rather than they be turned down by computer-scoring. There may have even been an issue with the application - perhaps the branch didn't enter a full three years address history onto the computer when applying, for example. Your own bank should always be one of the most likely to accept an application as they have a lot more information to go on than your credit score, such as a history of how you conduct your other accounts.
Second option, you could try Zopa, a UK service that matches people wanting to lend money with people wanting to borrow it- and getting great rates for both parties. http://redo.me.uk/zopa They have a special market for young people that specifically caters for people with no/limited credit profile. Failing that they also have a listings system where the decisions are ultimately made by the lenders themselves.
Third option - and I think this isn't the best option, is to go for a bad credit lender like Provident. However I don't see why you should have to do this as you'll pay a lot more interest for something you should be able to obtain at a lower rate anyway. But on the plus side, you are sure to get accepted - http://redo.me.uk/provident
So get down the bank and get it sorted!
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Other Answers (4)
- try looking on Martin Lewis! im 18 and have no credit rating and have been declined for a loan and credit card everywhere just because i have never had credit before seems the credit crunch is stopping people like us having the chance to prove ourselves with things like these as noone is willing to give us the chance,
keep trying but stick to the big companies dont go for a back street loan shark theyl end up ripping you off!!Source(s):
- A low credit score or no credit score, generally both are treated as same in UK. You can try a private lender and if the interest rates are suitable for you, you can apply there. I have also suffered with this and though we have no fault but we face it. I had then used the site : www.ask4loan.co.uk
to get the loan. You can also try your luck. - Try for a credit card, these are usally easy to get and help your credit rating so long as you pay them off of course! Or you could simply try looking for a loan elsewhere, you'd probably get a better deal anyway. Have a look on Martins Lewis' moneysavingexpert.com, it's a great help. Also try all the comparison sites etc.
- Loan and the credit card was equally good. but before you chose to take loan. better you knew the kind of loan .
there is :
Secured Loan
Here the loan involves the attachment of collateral--say, your property or any fixed/movable asset--against the sum of money borrowed. You risk losing your home should you fail on repayments.
Unsecured loan
There's no need for any collateral if you're borrowing an unsecured loan. However, you can anticipate for a higher interest rate because of the higher risk involved. Here, failure to make constant payments would see the lender fall back on the credit agreement and resort to legal claims to make good the loss incurred.
Short-Term Personal Loans
There are several sources for unsecured personal loans. Normally, interest rates are high in these kinds of loans.
Fast Payday Loans
Unexpected dilemmas involving money can happen. They may come in the likes of surmounting bills and car repairs. In case you do not have the extra money to meet these unexpected costs,
Military Personal Loans
Servicemen can enjoy military loans whenever they want to. Army military loans are offered by military loan companies to help servicemen to buy a home or a car or any other requirement that requires higher costs.
completely in http://www.fin-lab.co.cc/2009/09/5-various-kind-of-loans.htmlSource(s):
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