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Been refused credit....Help(19 Posts)
We dont have a mortgage as house is paid for (180k) joint names with dh.
we do have few bits and pieces credit cards loans etc about 30k. never late paying.
I ham currently sahm, he is self employed not earning the earth but enough for us to live on nights out, holidays etc.
why would we be refused. is it the credit crunch and everyone is getting knocked back ot because of our other debts.
any help would be great.
my sister says this is happening because no-one wants to lend. we tried to get a further loan on our mortgage and got knocked back too- and our credit rating is pretty good.
tbh sounds as if it could be a bit of both.
30k is quite a lot of debt (am not judging) so if it is an unsecured loan you are trying for that might be what is putting them off.
Could you take out a loan secured against your house? As it is paid for you have plenty of equity to borrow against.
wannabe, i tht thought that, but the fact we own the own with no mortgage is that not better.
Is any of the £30k secured eg against a car? What is the £30k in proportion to dh's annual salary? It may be the case that the fact that you have no rent/mortgage cost isn't being fully taken into consideration.
What sort of credit were you refused?
bank loan 7k, applied his name only.
most of the debt is im my name. apart from 1 credit card 7k in his name.
Don't think its you tunasandwhich. My husband was talking to someone a few days ago who earns £90,000 pa, no debts and got refused a £25,000 loan. Think lenders are a bit wary at the moment.
'tis a lot of debt when unsecured
why not re-mortgage if you are in a position to pay? Mortgaging is the cheapest money you will borrow. It is mad having a mortgage paid off but money on credit cards.
Will not be one reason but combination of high proportion of unsecured held at credit bureau vs income and self-employed. Mortgage (or lack) won't have anything to do with it as credit cards are unsecured. They usually look at mortgage payments as they take this into account when deciding affordability. Remortgage may be difficult for self employed at the moment. If you need the money may be worth trying overdraft - expensive, but bank will have idea of your affordability. Hope this helps. You can get a free copy of your Experian credit report on line if you want to see what information is held on you.
i know, dh doesnt know about most of mine tho. so shit scared he will find out.
thankd guys, might need to be a lady of the night to sort myself out. ha ha
Definitely get an Experian report. I got one and there were things on there which had been paid off long ago - a loan which had been paid off about three years ago was on there as being outstanding. It is terrible - loads of credit card companies and finances houses don't update your information for the positive stuff like paying things off, yet they will leave negatives there and not hurry to change the status - I have been trying to get two items (credit cards now paid off), removed from Experian for almost a year as they still show a debt in my name. Another thing people like Norton Finance, Ocean etc do is log each application you make individually, so if you go to them and they go out to 8 lenders, you are logged on Experian as making 8 loan applications which also affects your credit rating - they are all a bit outrageous - getting you in to more trouble when that is exactly what you don't need!
I was turned down for a loan last month and the reason is because I have no credit! Yes, I have a credit card but it is paid off every month. Our mortgage in comparison to house value is tiny. I own my own car and don't have an overdraft!
They won't lend to people who don't have existing credit! Madness! Sometimes it can also depend on how the person processing your loan puts your details through as well.
Most companies have their own credit scoring and points are usually based on:
length of time in home > 3 years is good
length of time with bank the longer the better
length of time with employer, longer the better
existing debts and, more importantly, if you're up to the maximum, so eg if you have £50k of credit available to you via 5 cards,each with a limit of £10k, but you were only using £7k of it that would be better than if you were using £49k of it. Equallyif you're NOT usig enough of it they may take the view that they won't make any money from you so may decline for that reason
your address need to be on the PAF (Post office address file) that's being used by that agency so check you;re on the electoral roll.
Also if you have any late payments that will go against you. 1 or 2 is fine, more than that may lead to a decline.
CCJs or bankruptcy will lead to a decline too.
Go to the main agencies (experian, equifax, call credit) and get copies of your file, should cost £2 each, that'll show you what exactly lenders are looking at.
Actually I don't think it's necessarily madness not giving credit to someone with no credit history. No history means there is no way of accurately assessing the risk, so no certainty that they'll pay it back.
To the op - the fact that you have no mortgage isn't really relevant here. What is relevant is the fact that you have 30 grand's worth of unsecured debt already and you are looking to borrow more. I would remortgage rather than have all these credit cards. but ...
the fact that you have approx 23k of debt which your dh doesn't know about suggests to me that you have far greater problems than just not being able to get a loan, and imo these should be addressed first.
If I found out that my dh had that much debt and hadn't told me it would put serious questionmark on our relationship.
You need to be honest with him before embarking on any more debt.
Tuna - I did the same, ie got in debt without my dh knowing - it is scary - I feel so sorry for you - I had to come clean in the end because I got caught out when things got really bad. I suppose it was a relief in the end, but I still feel such an idiot & he is wonderful and didn't deserve it. Maybe you need to come clean for everyone's sake so you can remortgage to clear the debts in the cheapest possible way. I am sure your dh would appreciate you telling him rather than him finding out some other way. Mine would have done.
wannabe and abear,
i agree i have myself in a big mess, when i had ds3 i was made redundant and suffered badly with pnd for long time after (really only got over it recently).
I was kidding myself we could stil live like we did, me no income amd i suppose it has crept up on me now.
i will need to sort myself out asap.
dh would totally freak and i mean big time, he hates debt. i guess it would be the end of us. i pay min payment each month and never late.
thanks for replies.
Hey Tuna, don't know if it will help, but there is some information on the Aqua Card website about what to do when you're being refused credit, like tips to build up your credit rating.
I definitely agree you should check your credit rating to find out if it's that.
You can actually check your credit report for free with Credit Expert I think you get a 30 day free trial so don't forget to cancel it after you've got your report!
The fact that you don't have a mortgage is indeed good for you, but doesn't mean anything to credit agencies cause they're not seeing you borrow responsibly, as you are not borrowing (if that makes sense)You obviously are in other ways and if you've never been late paying, maybe there is a mistake on your report? You can sort that out by writing to the agency you got your report from and request it's changed.
I hope you get it all sorted, good luck
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