Chances of a loan?

[NiroRayth]

Hi, I've recently applied for a small loan of £1250 from my bank (RBS) and was wondering. does any one here know what my chances are of having a successful application?
the reason i need it is so i can get rid of my 306 and buy a 51 plate 307

I have no debt, any bills I've ever had have been paid. I do still stay with my parents and i have been in full time employment for 9-10 months.
the loan of £1250 would be paid back in the course of a year at £100 a month (£25 a week) so even if i had to go on job seekers allowance i could still manage the payments although i hope it doesnt come to that.
if anyone can shed any more light on this for me please do

[jmkent]

Unfortunately, there are a lot of criteria lenders use when it comes to deciding on an application. I've been there myself and know that the repayments aren't an issue, but the banks seem to use their own figures for what they believe we spend each month, and to be honest, they're miles out

I've successfully had 2 loans over the years from my bank (HSBC) - one for my yacht, and one for the car. The first being for more and this did need me to speak to them and discuss what they believed my outgoings were vs. my incomings.

They do take into account more than just the repayments, they will check your credit file, which will show up how you manage your accounts/credit cards if any, where you've been living, any other credit searches and results of them, i.e. if you reapply for credit from somewhere else and are refused, this will get logged too.

You could always sign up for a free 30 day trial on the creditexpert site and view your credit report yourself to see what is there.... just remember to cancel it within the month to avoid paying the subscription.

I don't know how much you earn, or what your outgoings are, but just make sure you have more than enough left so that they can see that too

Oh, and if you are turned down, give them a ring and speak to them to try and find out why... they probably will try to fob you off and just put it down to credit rating, but be persistent and explain your situation and ask for clarification.

[NiroRayth]

all i actually have to pay for is £30 digs per week and £125 insurance per month, which i havent missed. the rest i just waste on takeaways fuel and just things to keep me occupied in general on my minimal hours i will earn £169 per week.

[john_h]

i've never had a loan. the only thing i have managed is to get car finance for upto £10k. anywhere i tried that use experian always declined me...heres an example of my outgoings when i tried:

annual income - £27500
asked for a loan for £5000 over 4 years.

still declined as they saw me in the forces, but i could still repay easily! they are very discriminate in your job and what you do!

i only got £10k car finance as i went direct to an underwriter and probably the richest bank in the world - close brothers. proved my incomings and outgoings and they said yeah and heres a credit card for a £1000 if you want it.

do as jmkent said about creditexpert etc. if you also applied in branch, if refused go in, speak to the agent that helped you and prove you can afford it! they can approach the underwriters on your behalf and "persuade" them to look at it again.

also no credit is just as bad as having bad credit...some companies like a little history to get a profile on you.

[Ross_K]

Originally Posted by NiroRayth

Hi, I've recently applied for a small loan of £1250 from my bank (RBS) and was wondering. does any one here know what my chances are of having a successful application?

In my experience banks aren't interested in giving loans that small. You'd have an easier time looking for £12500.

You got a credit union near you?? They're a lot more approachable when it comes to small loans as long as you have some history of saving with them.

Have a look here: Mutual Financial Services - Find Your Credit Union

The other option would be to get the car on a credit card and pay it off as fast as you can. I'd try the credit union approach first though

[Gibbo]

Originally Posted by Ross_K

The other option would be to get the car on a credit card and pay it off as fast as you can.

Or take advantage of the six months interest free and then move the balance to another new card with a low balance transfer fee.

But again, this can be as difficult as a bank loan if the OP has no credit history.

Its very strange the way the banking system works, sometimes they'll throw money and credit at someone who can't afford it and then they won't want to know someone with a good credit history.

Take me for example, a few months ago I applied for a Tesco credit card to take advantage of the points - now I live on the Wirral, Tesco is my closest supermarket and fuel is relatively cheaper than anyone else.

I already own a Natwest card I've had for many years, and an Asda one that I took out for the discount on fuel when you used it (now expired).

The Natwest card has a credit limit of something like £10,000. I only use it for Ebay and Paypal and spend about £100 a month and clear it off. But as I don't hold a Natwest bank account I wasn't getting any rewards.

I have no other loans or debts and considerable savings in two bank accounts and an ING account, a couple of ISAs.

Yet I was declined the Tesco card! I took a credit rating and scored 991 out of a possible 1000.

[Ross_K]

Originally Posted by Gibbo

The Natwest card has a credit limit of something like £10,000. I only use it for Ebay and Paypal and spend about £100 a month and clear it off.

....Yet I was declined the Tesco card! I took a credit rating and scored 991 out of a possible 1000.

I think the Tesco card is targeted at the mongs who go shopping in their pyjamas , and who'll probably carry a balance over every month.

Anybody who pays off their balance every month is a customer they ain't making money off.

[danthevan]

A £1250 loan, paid back at £100 a month for 12 months? I'll have one of them please!

Depends on what the computer says really, full time employed, no real outgoings, should be ok.

If you need to get your credit rating up, take out a credit card with a £200 limit, use it just for say fuel, and pay it off in full every month. Your credit score will jump within a year

[NiroRayth]

Well, i went in today as i had my appointment scheduled for 3pm friday the 13th. 15 minutes later i was being handed £1250 worth of £100, £50,£20 and £10 notes i was actually soo surprised. she didnt see a reason why not to give me a loan. keep in mind my monthly out goings only come to £250 a month when i earn around £800. on an even more positive note, i'll picking up my new 307 1.6 16V LX on sunday AND my insurance drops £30 a month. oh and another little bonus, im 21 and will have 2 years no claims in august looks like i should got shot of my 306 long ago!

Sorry for any spelling mistakes im tired, I've had an emotional day

[john_h]

lucky for some... congrats anyways lol will see you around on here hopefully...in a good way