Bad Credit Agency

Having good credit and applying for a loan then getting declined?

Hi, My brother is wanting to buy a car for £3000, and of course he wouldnt have the money so he appplied for a loan and got declined he has 2 credit facilites, an overdraft and credt card, He applied for a loan at ulster bank (who use equifax) and was declined, but he has a credit card from ulster bank (with a liimit over £1000). His bank account is with abbey and his overdraft is £350 i think. But i read somewere that you have to have at least 2 credit facilitys to have good credit, he has two, but the 2 use diffrent credit reference agencys, abbey use experian and ulster bank use equifax. Would the 2 agencies share information on accounts?, and how can he actually get a loan? He has no bad credit either. Thanks

Public Comments

1. Hi, The 2 credit references are good enough . Its the ability to service the loan might be the problem . Rgds..............
2. Sometimes having little debt is just as bad as having loads!!! It sounds really silly, but they like to see that you can manage your payments, and therefore, if you had 5 credit cards, and continuously paid them on time, you would have a good credit score, despite the fact that you might owe £1000 on each card. Perhaps another credit card would help. I don't want to sound extreme, but there are also a lot of credit cards that offer 0% interest on purchases for 13 months, etc, so depending on the length of time he wants to take to pay it back, it might be an option to spread the cost of the car over 2 or 3 credit cards. It might work out cheaper than a loan, as it would be interest free. have a look at the following website - it is really good at explaining about credit etc. I have found it really helpful when trying to rebuild my credit rating. http://www.moneysavingexpert.com/cards/
3. It might be that he hasn't had a credit history for long. It might also be that he doesn't earn enough money in the bank's eyes to be able to pay back the loan. As far as actually getting the loan, he would have to talk to the bank and ask them why he was declined and see if there is something he can do to make it happen. If that doesn't work, try another bank. Their are banks all over the place and online that may be willing to loan him the money. Good luck!
4. whatever you decide to do DONT go to the Alliance & Leicester here are some links to horror stories about them http://www.banking-guide.org.uk/bank-alliance-leicester.html http://www.reviewcentre.com/reviews89253.html in the long run its best to wait and buy it with cash 'Cash is still King' find out what it would cost you to get a loan from a bank for that amount and then open up a high interest account at your existing bank making those payments into that account. people have been programmed to think they must have things NOW and credit agencies take full advantage of that and will take full advantage of your existing account and income. if your brother saves up the money first he will be able to haggle the price down even further when the shows them the colour of his money on their table. if your brother wishes to buy a car remind him also that the car may cost only £3000 but to run the car as well as making the payments for the ever growing cost of petrol the not so cheap insurance and any breakages which may occur to must be calculated along with the payments to the credit company for the loan. however if you save and then pay cash there are NO payments to credit agencies
5. if your brother has been paying his credit card on time for the last six months he wants to try and ring them and ask to up his limit as they will do this hope this helps.floz
6. really need a loan and also having good credit.don't worry its better for you to try for an online loan.i think that the below website will help you to find right solution.
7. Each financial company has their own points system some higher than others, wether they use equifax or experian makes no difference if your points when a credit search is carried out dosent reach their cut off point computer says no!, unfortunately there is little human intervention it is as simple as that and its cheaper to administrate. so its pot luck on which company he will fit with but be careful the more searches are done the lower the score will be brought down.