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Original poster

Problems with Nationwide Bank (any new bank suggestions)

29 replies

Bparb · 17/04/2023 13:05

Hi everyone,

Bit of a weird one and I don't know where to post this but today I applied for 10k loan over 60 months to buy a car with my bank Nationwide. It got declined.
I'm not sure why as I don't have any outstanding balance on my CC, I have a full time job (30k a year), credit report has come back as Excellent (never missed a payment) and I do have just under 50k in savings. This loan would be the only monthly payment I have so not overextended. I don't know if the savings is the issue as they look at it as you can pay for it yourself but I prefer paying a car monthly as we're saving for a house!
Has anyone else ever had problems like this with Nationwide?
Any recommendations on new banks as this is the second time in 5 years I've been declined for support from them and they won't even tell me why. So I am set on leaving them now!

OP posts:
MamaBerg · 17/04/2023 13:11

What's the interest on the loan vs interest available in savings. It seems really odd to me to take a loan when you have the cash. It will cost you more. Just put what you would pay each month into the savings account. A "loan" from that account if you will! Also stop applying for credit you don't need, it won't help a mortgage application to have outstanding debt.

Original poster
Bparb · 17/04/2023 13:19

MamaBerg · 17/04/2023 13:11

What's the interest on the loan vs interest available in savings. It seems really odd to me to take a loan when you have the cash. It will cost you more. Just put what you would pay each month into the savings account. A "loan" from that account if you will! Also stop applying for credit you don't need, it won't help a mortgage application to have outstanding debt.

Thanks for the reply! We're not going for a mortgage we're going to buy outright as my partner is a company owner and that makes mortgages difficult so don't need to worry about that. It's also why I prefer to pay the car monthly as I don't have any monthly payments as he pays all rent and bills so the low interest doesn't matter if it means having the extra 10k in savings for when we can buy a house! Hope that makes more sense as to why I'd borrow it over taking the money out of savings!

OP posts:
AlmostAJillSandwich · 17/04/2023 13:20

Not having any credit on your cards can mean theres no evidence you're good at managing debt and paying on time, and they see you as a lending risk. Also they may be suspicious at the almost 50k savings but wanting a 10k loan.

Original poster
Bparb · 17/04/2023 13:22

AlmostAJillSandwich · 17/04/2023 13:20

Not having any credit on your cards can mean theres no evidence you're good at managing debt and paying on time, and they see you as a lending risk. Also they may be suspicious at the almost 50k savings but wanting a 10k loan.

I do spend on my CC, just pay it back quickly as I know this builds good credit history. Plus I have my previous car that I was paying off finance on so shows I don't miss payments, so I do agree that maybe it could be the savings thing but it's an odd reason to decline someone.

OP posts:
MarthaJonesPhone · 17/04/2023 13:27

Nationwide do make odd decisions.

I received an offer of a pre approved credit card; as it happened I was looking for a new credit card. They declined me! The staff at my local Nationwide had no idea why and neither did I.

Banked with them for 30 years, healthy balance and savings and good credit card history 🤷🏻‍♀️

KievLoverTwo · 17/04/2023 13:34

Is it a joint loan request, and is your partner running his own business affecting it?

fizznchips · 17/04/2023 13:48

Have a look at the loans section on the money saving expert website, you can do a soft search to see if you will be approved for a loan. You don't have to get a loan through the bank you bank with

ArcticSkewer · 17/04/2023 13:59

nationwide hate lending money. I never ask them on the principle of 'don't ask as refusal may offend'.
I'd think any other bank (perhaps rather than building society) would be more likely to approve.
If you want to change current account over it, I'd recommend first direct. Until recently they were excellent but they are still very good, even if service has slipped

Original poster
Bparb · 17/04/2023 14:00

MarthaJonesPhone · 17/04/2023 13:27

Nationwide do make odd decisions.

I received an offer of a pre approved credit card; as it happened I was looking for a new credit card. They declined me! The staff at my local Nationwide had no idea why and neither did I.

Banked with them for 30 years, healthy balance and savings and good credit card history 🤷🏻‍♀️

Thank you for this, glad to know its not just me (in a selfish way) haha!

OP posts:
Original poster
Bparb · 17/04/2023 14:01

KievLoverTwo · 17/04/2023 13:34

Is it a joint loan request, and is your partner running his own business affecting it?

Nope, just me! Done against my current account with them as well!

OP posts:
Original poster
Bparb · 17/04/2023 14:02

fizznchips · 17/04/2023 13:48

Have a look at the loans section on the money saving expert website, you can do a soft search to see if you will be approved for a loan. You don't have to get a loan through the bank you bank with

Thank you for the advice, I was actually just ranting to my mum about it (doesn't matter how old we get, always moan to mum) and she mentioned the same thing!

OP posts:
KievLoverTwo · 17/04/2023 14:08

Bparb · 17/04/2023 14:02

Thank you for the advice, I was actually just ranting to my mum about it (doesn't matter how old we get, always moan to mum) and she mentioned the same thing!

Show quote history

They can only be objecting to your savings level, I imagine.

We did the MSE thing for a consolidation loan a while back. Only thing I can say is take the rates with a pinch of salt. Ours wouldn't even tell us what the rate would be until the paperwork came through, then their offer was 2% higher than what had been advertised to us.

Greentree1 · 17/04/2023 14:09

Partner Company owner makes a mortgage difficult, could be the same problem with a loan, even if it's only in your name your credit can be affected by connected people living at the same address (sometimes even by house shares with totally unconnected people).

As someone else said I would try applying via a soft search to see if you are blocked other places not just Nationwide. You might move your account and be no better off.

Theraffarian · 17/04/2023 14:15

One other thing to consider is that even if you aren’t using it all , your available credit will be taken into account in terms of offering additional lending . So for example if you have a couple of credit cards with a £5k limit on each , even if not being used , it will be looked at as £10k credit you could use on top of the loan which may make your lending look unaffordable.

Original poster
Bparb · 17/04/2023 14:22

Greentree1 · 17/04/2023 14:09

Partner Company owner makes a mortgage difficult, could be the same problem with a loan, even if it's only in your name your credit can be affected by connected people living at the same address (sometimes even by house shares with totally unconnected people).

As someone else said I would try applying via a soft search to see if you are blocked other places not just Nationwide. You might move your account and be no better off.

I think it is just nationwide, I know lending criteria is different for finance as it's 'secured" but had no problem getting the finance for the car, just wanted the lower rates that a loan offers! Been provisionally approved by another lender on a loan so I would hazard a guess at it being Nationwide being awkward

OP posts:
Original poster
Bparb · 17/04/2023 14:23

Theraffarian · 17/04/2023 14:15

One other thing to consider is that even if you aren’t using it all , your available credit will be taken into account in terms of offering additional lending . So for example if you have a couple of credit cards with a £5k limit on each , even if not being used , it will be looked at as £10k credit you could use on top of the loan which may make your lending look unaffordable.

Yeah it's definitely something to consider, thankfully I reduced my CC limit down to 1k as I didn't need anything more and only really use it for paying off insurance just as a way to use it for credit history but as I've just sold my current car my insurance was up so all paid off on my CC!

OP posts:
OnMyWayToSenility · 17/04/2023 14:33

I had a similar problem with nationwide they make very odd decisions! Luckily I had a Santander account too which most of my wages go into and have a mortgage with too.
Santander gave me a car loan no problem 😉 highly recommend

GiltEdges · 17/04/2023 16:22

Lenders don't refuse to lend you money because you have too much money already Confused

But irrespective of that fact, you'd be better off looking at a loan comparison site where you can generally get an indication of how likely you are to be accepted by different lenders before you submit the application.

Original poster
Bparb · 17/04/2023 21:05

GiltEdges · 17/04/2023 16:22

Lenders don't refuse to lend you money because you have too much money already Confused

But irrespective of that fact, you'd be better off looking at a loan comparison site where you can generally get an indication of how likely you are to be accepted by different lenders before you submit the application.

Well I wouldn't have thought so, I'm just putting it down to Nationwide being difficult as already managed to get another secured, but looks like it's common with Nationwide!

OP posts:
lljkk · 20/04/2023 18:30

Why get a 10k loan when you have 50k in savings. Inflation is devouring our liquid assets fast, why pay interest when inflation is destroying your savings?

Does not compute.

Original poster
Bparb · 20/04/2023 22:34

lljkk · 20/04/2023 18:30

Why get a 10k loan when you have 50k in savings. Inflation is devouring our liquid assets fast, why pay interest when inflation is destroying your savings?

Does not compute.

I've already explained why on this thread, just because a financial decision doesn't work for you doesn't mean it doesn't for someone else...

OP posts:
lljkk · 21/04/2023 08:44

... because you're saving for a house deposit?

My son just paid off his car & had an offer accepted on a house, because this was by far the best financial decision, car loan interest is so high.

Original poster
Bparb · 21/04/2023 12:29

lljkk · 21/04/2023 08:44

... because you're saving for a house deposit?

My son just paid off his car & had an offer accepted on a house, because this was by far the best financial decision, car loan interest is so high.

No. We're buying outright so having the 10k in the bank and paying the car off monthly (when I have no other monthly payments) makes more sense.

OP posts:
TallulahBetty · 21/04/2023 12:50

Bparb · 17/04/2023 13:22

I do spend on my CC, just pay it back quickly as I know this builds good credit history. Plus I have my previous car that I was paying off finance on so shows I don't miss payments, so I do agree that maybe it could be the savings thing but it's an odd reason to decline someone.

Show quote history

How quickly do you pay the CC? Right away, or do you wait for the statement and then pay? Only the second scenario will 'build your credit'.

Selfesteem22 · 21/04/2023 12:59

You dont have to get a loan from your current bank can be any - 0% interest credit car that does money transfer might be an option

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