If you`re turned down by a loan company often and frustratingly they won`t tell you the precise reason as to why, however our experience shows that other lenders may still consider your case. We have helped many customers obtain the money they are looking for despite having been let down elsewhere, so if you need a loan but have been getting declined elsewhere why not let us try to help, call our team on 0800 0159 295 or dial 0330 0536001 (mobile friendly) alternatively complete our short online enquiry form.
Your decline may simply be because they work on an automated credit scoring system which has many aspects and when you ask `why` they simply do not know which areas are causing the issue. Generally they will let you know the name of the credit reference agency they used. You can ask why they refused you but they don`t have to give you a detailed reply.
The first key area when refused finance or a loan is not to panic.
Not all lenders work on automated systems, many of our homeowner loan lenders as well as some personal loan providers will look at your case for being accepted for a loan on its own merit, even if you have been declined or refused a loan elsewhere. However we would suggest you avoid the immediate reaction of many that have been turned down who immediately re-apply fully with a different company.
Sometimes it may be a good idea to talk to a team with plenty of experience in sourcing loans for customers who have been refused, to find out if they can help you and what the facts and figures are via a free quote before you proceed - This is where My Sort of Loan come in, simply call for free on your mobile or landline using 0800 0159 295 or dial 0330 0536001 (mobile friendly) or complete our short online no credit check enquiry form and we will get the ball rolling. Our lenders provide loans to customers who are homeowners or mortgage payers across the UK from £5,000 to £250,000. Some of these plans include options for people who have;
Taken out payday loans or multiple credit items recently
Been refused by another loan company or have been offered too small a loan
Missed mortgage, loan or credit card payments and are looking to repair credit / clear arrears
Been unfortunate and incurred county court judgements (c.c.j.`s) or defaulted credit
Have multiple credit, store or loan accounts and want to refinance them
The list above gives you a good idea of the reasons that many lenders refuse a loan for, other common ones are;
- still being tied to a joint account that has defaulted that you may no longer be responsible for (e.g. an ex partner),
- Not having previously had any significant loans or credit facilities (such as higher purchase or a credit card),therefore giving you no credit history.
If these may be affecting you give us a call for free on 0800 159 295 or enquire online and have a confidential discussion without obligaton so we can tell you if we can help and what the facts and figures are. Repayment terms of 36 to 300 months and rates from just 4.99% to 37.3% APR. Representative 12.6% APRC..
Rather than keep applying and getting turned down you could firstly establish the name of the credit agency the lender who rejected your application used. Then either on line or by letter request a copy of your file one of largest credit agencies are:-
Customer Service Centre
PO Box 10036
If you have been refused a loan it is natural to want to understand why. The credit report people are obliged to provide you with a statutory credit report and they only charge around just £2 for it as a one of fee. In today`s culture most people expect to be able to obtain a loan and often are bemused when they are turned down. However since the credit crunch, even though we are through the other side of it, some UK lenders have become increasing more careful in their dealings and unless you have an unblemished credit report with plenty of income originating from an employed source you can still get rejected and baffled by the decline, so make sure you know that your report is correct.
Once you have your credit file quite quickly it should become apparent if there is anything wrong with it. Remember mistakes do happen! If you do spot a mistake, write to the credit reference agency and request for them to correct it straight away. You should ensure that you write an explanation to tell them why it`s wrong, and provide any proof you have to back up your explanation. The agency then has 28 days to act, they will investigate your explanation your credit report will be marked as `disputed` while they look into the problem. The Data Protection Act 1998 gives you the right to have information on your credit file corrected or removed if it`s wrong; this is important but remember it can`t be removed if it`s correct but you don`t like it! Some commercial credit repair companies offer to remove information from your file to clean it. There have been warnings against using them - it`s probably best to get in touch with the credit reference agencies yourself.
We do not arrange payday loans. However recently due to pressure from the regulator payday lenders have altered their practices and now make more effort to check affordability and are more transparent about their charges and fees .However you should be aware that taking out a payday loan can be a very expensive way to borrow. It`s also very easy to roll over your loans from month to month and lender to lender, by mishandling a payday loan your original debt could quickly grow into an unmanageable one, however unlike secured loans or second mortgages no security is required. Other lenders may penalise customers for having had a payday loan recently and will sometimes refuse a loan if this type of loan appears on your credit report. So if you are thinking of remortgaging, buying a home or taking out some longer term borrowing / finance please be aware that taking out a payday loan will show on your credit history and may prevent some lenders from helping you.
Doorstep lending or Home credit is generally only available in limited area where the doorstep lender representative lives. The loan is usually a small cash loan of up to 200 pounds and is arranged in your house with the representative who is also responsible for weekly collections and any arrears visits. This type of loan can be very expensive so think very carefully before you take out a home credit loan even if you have been declined for a loan elsewhere.
My Sort of Loan is not a pawn broker. This type of lending is generally only suitable for relatively small amounts of finance. Pawnbrokers will lend you money but at higher rates of interest than high street banks and you`ll have to leave something of value as security, this is known as a `pawn`. Importantly if you default on the loan you will lose the item you have used as security. If you decide a pawn broker loan is the right for you check that your pawnbroker is a member of the National Pawnbrokers Association, a trade body that promotes higher standards of business conduct.