How hard to get a personal loan?

[BMR]

That would be an unsecured loan, which seems to be the problem.

I'm 24 years old, living at home with parents, as for my credit history I have had a car on hire purchase, due being paid off within 9 months, I've had a credit card for 3 years, not missed a payment and try to pay at least 80% of the balance off if I can't manage the whole lot each month.

My bank is quoting me 25.6% APR on a loan over 5 years. This equates to nearly paying the same in interest as the money I am borrowing. This isn't an actual application, which I've been advised can see your rate go up or down depending on circumstances.

I have applied for a loan through ASDA (Santander Cards) and been declined.

Am I really not going to get a decent deal at all due to my circumstances ? Or is it just due to the current economy?

The lady in the bank did suggest I get either of my parents to take the loan in their name (hence it would be secured) with the direct debit set up from my account - obviously legit which I was surprised at.

[ringram]

Try Zopa, maybe your credit rating isnt so great. You can check by asking for a copy from experian etc.

[BMR]

Zopa looks intriguing - thanks - I'll try that this evening.

[BMR]

Turned down from Zopa sadly.

I decided to look at my credit rating and my score is 900, which is apparently good.

It also states the two factors against me are I have outstanding credit (assume these to be HP on car, also have an overdraft) but the one that is worrying me is saying that I'm not on the electoral roll?

I know I'm on the electoral roll because only recently we had a council by-election and I had my voting card through.

So how do I go about changing that to say I am on the electoral roll?

Edited by BMR on Thursday 12th November 21:49

[auditt]

My credit from experien is about 650

And ive got several mortgages, car loan, credit cards

But i do have high turn over of money every month as well as bank with private natwest

I too live at home

[BMR]

Mortgages seem to help getting loans, then the lender has something to take if you can't pay.


Anyone able to help me re the electoral roll problem?

[auditt]

Why do you want a loan if you dont mind me asking?

[t84]

auditt said:

I too live at home

Surely most people live at home? :/

[BMR]

auditt said:

Why do you want a loan if you dont mind me asking?

To build a race car.

[Ungarsee]

Yep, electoral roll should sort it assuming affordability is okay. Speak to your councils council tax department as they may not have registered you properly or you may have inadvertently opted out from being part of the public register

[BMR]

I checked at the Electoral Register Office today, however they have me under a slightly different address to what I use.

The postcode seems to be the biggest change, the last two letters are different, plus our house goes by a name but according to the electoral roll it also has a number.

I can't remember what is on the voting cards but I'm sure it was our right address.

What makes it even stranger is I have everything, bank account, credit card, hire purchase under the address I believe to be right.

I can only try and write to Zopa to ask them to take another look.

[BMR]

Just checked my Equifax report and it has me on the electoral roll, correct address.

How can Experian be different?

[jeff m]

Are UK and US credit ratings the same?

'Cos if the are, with 900 they should be throwing money at you.

If they are different as I suspect they must be.
Then an alternative to your parents cosigning would be for them to arrange a line of credit, the interset rate would be single digit and only calculated on the money drawn.

Example 20K line of credit, draw 3k, int only due on 3k. So as you build your car each draw will increase debt but each payment will reduce it.

So say your car cost 9K you will never actually pay interest on 9K as the bal will always be lower.

Hope that makes sense

[BMR]

That sounds interesting, never actually heard of that before ?

Any links to some more info on that please?

[rocksteadyeddie]

BMR said:

auditt said:

Why do you want a loan if you dont mind me asking?

To build a race car.

Sanctioned :stamp:

[mcflurry]

jeff m said:

Are UK and US credit ratings the same?

'Cos if the are, with 900 they should be throwing money at you.

The scores over here mean next to nothing, as each lender scores their own criteria. Scorecards IMHO are a marketing gimmick as you can only be charged £2 for a copy of your credit record...

[jeff m]

BMR said:

That sounds interesting, never actually heard of that before ?

Any links to some more info on that please?

Well in days of yore lines of credit were only for business, but now days they are available from Your Bank, your Mortgage company, and pretty much anyone that thinks you are ok.
They can be unsecured, but for a decent rate secured is the way to go.

Note; a line of credit can be cheaper than a mortgage and is way better than a loan.
It is also very flexible, ie you could apply for one even if you don't need it, often the best time. Never draw on it, never pay any interest, it would just cost you the set up cost (minimal) and you have a rainy day fund to protect you.

I'm in the US so a link to my bank wouldn't help you.
I think there may be minmums, but don't let that deter you as you only actually draw what you need. So getting a 50K line of credit is no big deal.
As you are probably already aware, these things do require a modicom of fiscal responsibility or you could end up living in a tent

[coanda]

This might be a US only thing?

[BMR]

rocksteadyeddie said:

BMR said:

auditt said:

Why do you want a loan if you dont mind me asking?

To build a race car.

Sanctioned :stamp:

I wish you worked in the bank!