Dont know why i cannot get finance.

dmxdex2020 · 31 Jul 2009 at 11:51

Never had finance or borrowed anything am in full time work i earn enough to pay it back and i get declined. the email address does not reallt say why i got declined, not sure if its down to some info not being correct.

95thrifles · 31 Jul 2009 at 12:00

this will get moved to general discussion or something
to build up a credit history you need to start with a credit card first for 6-12 months, that will show you have the ability to repay
youre unlikely to get a loan without having shown some ability to repay already, especially with the current economic climate and banks being unwilling to lend

dmxdex2020 · 31 Jul 2009 at 12:03

95thrifles said:
this will get moved to general discussion or something
to build up a credit history you need to start with a credit card first for 6-12 months, that will show you have the ability to repay
youre unlikely to get a loan without having shown some ability to repay already, especially with the current economic climate and banks being unwilling to lend

Ive had my card since 2004 but its debit card i dont use credit cards. Ive never loaned or anything, guess banks are getting strick.

Glaucus · 31 Jul 2009 at 12:12

debit card does not count. You have had no debt and as such can not show you can pay debt back. Hence you will have a low credit score.
I don't know why people think it's good not to have any debt. Some controlled debt from a young age is a good thing. Especially if you are going to buy a house.

Are you on the electoral registry as this improves your credit rating.
You can get a free dredit check here
http://www.experian.co.uk/freereport/?sc=410008&bcd=yahoosearchcredxpert
Remember to cancel before the end of 30 days or you will be charged. If you want your credit score that's an extra £5.95.

Greebo · 31 Jul 2009 at 12:13

dmxdex2020 said:
Ive had my card since 2004 but its debit card i dont use credit cards. Ive never loaned or anything, guess banks are getting strick.

Although they are tighter now, it's only being the case that you needed a history. The fact that you have never borrowed anything and you don't use your credit card counts against you as daft as that seems.

For example my mother who is a housewife has a £15k limit on credit card and can get loans easy if needed. They buy everything on her card and pay it off every month.

My father who is the breadwinner who never uses his credit card has a £1000 limit and struggles to get finance.

Mad? yes but that's how the system work. They would much rather lend to a proven borrower who has shown in the past that they make all their payments on time than to a new borrower with no history.

Hairybudda · 31 Jul 2009 at 12:14

Ive never loaned or anything, guess banks are getting strick.

That's why they wont give you finance, you can't prove you're capable of paying back. V12 have knocked me back before too however the bank have no qualms giving me a loan so it's probably to do with the lenders they approach. Try your bank for a loan and buy your hardware with that.

dmxdex2020 · 31 Jul 2009 at 12:22

How am i suppose to prove i can pay it back when they wont loan me any money lol. i will try the electroll later after work.

Glaucus · 31 Jul 2009 at 12:24

because it's easy to get some types of credit.

Like credit cards, insurance, phone contracts.

Hairybudda · 31 Jul 2009 at 12:27

dmxdex2020 said:
How am i suppose to prove i can pay it back when they wont loan me any money lol. i will try the electroll later after work.

You start small by taking small debts on, like a credit card with a small limit, max it out and pay it back at the end of the month regardless of whether you could have paid with your debit card. The longer you do this the stronger your credit rating becomes, you can't just dive in the deep end and ask for a bunch of money, they have to calculate the risks associated with lending you money and your word plain won't cut it without your credit file being in shape.

And the electoral roll won't loan you money lol, it bacisally just means you're registered and eligible to vote

fRostiE · 31 Jul 2009 at 12:28

what are you trying to finance? apply for a high limit credit card and put it on that instead? probably get you on the monthly payments / interest though...

(this is advice from someone else who has never owned a credit card and pays for most things outright and only buys items when he has the full amount to purchase them (even the car) )

Glaucus · 31 Jul 2009 at 12:30

Hairybudda said:
And the electoral roll won't loan you money lol, it bacisally just means you're registered and eligible to vote

It significantly improves your credit rating as it links you legally to an address.

Murf · 31 Jul 2009 at 12:33

fRostiE said:
(this is advice from someone else who has never owned a credit card and pays for most things outright and only buys items when he has the full amount to purchase them (even the car) )

Which is presumably why the advice isn't anyn good.

The first card he gets is likely to be 20% + APR. That would be quite a nasty rate if it was a large amount he required.

Glaucus · 31 Jul 2009 at 12:35

for those who have never had credit, do you not intend to buy a house?
As if you do try buying a house you are going to have a rubbish credit rating and thus only be able to get rubbish deals.

redeye_uk · 31 Jul 2009 at 12:35

I remember when I was buying a £700 tv i wanted to do it on finance (12 months interest free or something) just to spread out the payments. I got rejected and out of protest just bought it on my debit card.

I am on the electoral role (have been for years), have credit cards which I always pay off, and have never missed a payment.

When giving finance I think they look for someone who is proven to pay off credit, but at the same time may miss the occassional payment - whats the point in giving someone interest free finance if you cant make money from them?

Flinkman47 · 31 Jul 2009 at 12:40

Hey, sign up here: http://www.experian.co.uk/

This report will tell you exactly why you were turned down. And you will see any companies who run credit reports on you. I've used it several times, seen what the problem is, cleared it and then re-ran the credit request and passed, good luck!

95thrifles · 31 Jul 2009 at 12:43

no, you dont want to miss any paments, that goes against you, the actual CC company youre with may well like it as they get to hammer you for missed payments and get more money out of you, bu it adversely affects your credit rating.
As acidhell said check out experian, always good
If youve never had credit before then yeah make sure youre on electoral roll, then apply for a credit card with the bank you bank at, as they have your financial history theyre more likely to say yes, once youve had this for a while you can then look at applying for other things
Other things that go against you are frequently changing a) job B) address c) bank this all comes down to stability, if you have a stable career/adress/banking habits theyre more likely to lend to you

fRostiE · 31 Jul 2009 at 12:57

AcidHell2 said:
for those who have never had credit, do you not intend to buy a house?
As if you do try buying a house you are going to have a rubbish credit rating and thus only be able to get rubbish deals.

yes ofc... but this isnt exactly widely advertised is it! I dont like being in debt.. i know thats exactly what buying a house does to you but i mean general debt / car finance / bank loan for a new PC or car etc.

i've never seen a CC advert that says "get a CC otherwise we wont give you a mortgage" - i was discussing mortgages when i was last in my bank with a financial advisor and that was mentioned at all!

redeye_uk · 31 Jul 2009 at 13:00

fRostiE said:
i've never seen a CC advert that says "get a CC otherwise we wont give you a mortgage" - i was discussing mortgages when i was last in my bank with a financial advisor and that wasn't mentioned at all!

i suggest you get a new financial adviser!

fRostiE · 31 Jul 2009 at 13:03

redeye_uk said:
i suggest you get a new financial adviser!

i cant fire her, she works at the branch

... plus i didn't exactly ask, but i turned down their offer of a credit card as i dont need one.

so to clear this up im better off putting £200 or so a month onto a credit card then paying it off each month, or am i better off putting like £500 of spends on the credit card? is it the more you put on and pay off per month the more it increases?

z0mbi3 · 31 Jul 2009 at 13:06

fRostiE said:
i've never seen a CC advert that says "get a CC otherwise we wont give you a mortgage" - i was discussing mortgages when i was last in my bank with a financial advisor and that was mentioned at all!

I think it's just a given that you'll need a positive credit history. Your bank may be inclined to give you one if your history is neutral on account of them already knowing your financial history.

fRostiE said:
so to clear this up im better off putting £200 or so a month onto a credit card then paying it off each month, or am i better off putting like £500 of spends on the credit card? is it the more you put on and pay off per month the more it increases?

I don't know the exact workings of it, but presumably the more you spend the better, so long as you aren't missing payments. Certainly don't try and spend just for the sake of it, but just do your normal spending on the credit card and then pay it off using your debit card at the end/beginning of the month.