Why is getting a personal loan such a pain in the ass?
I have a perfectly clean credit score & 2 banks declined to loan me 20k for no paticular reason. I've never had a big loan before or mortgage but work a great job and can pay it back in 3-4 years.
Why are banks so hesitant to lend?
Fixed rate? My bank said long term fixed rates are RISING
unsecured loan, you need to put up personal property that conforms to jewish market valuations. you have no skin in the game.
What's your credit history? Not your score, but how long you've had a credit card and shown you pay it off regularly.
I got a fixed rated unsecured this week.
I work at a bank processing this type of loan, among others. If you were straight up declined, it's probably due to your debt to income ratio. That's your monthly income vs your monthly expenses (rent or mortgage, car payment, student loan payment, credit card etc). If you have a large amount of student loan debt and don't make a lot, that may have fucked you. Even if your payments are deferred, 1% of your balance will be considered as your monthly payment. If they counter-offered a much lower amount like $5k or $10k, it's probably due to lack of credit history. Even if your score is decent from having credit cards, underwriters want to see previous installment loan history. The underwriters i work with are stingy niggers and often want to see previous personal loan history specifically rather than just car loans.
If I were you, I'd apply with a local credit union. Credit unions typically have a much higher risk profile and will lend to pretty much anyone with a pulse. I'd personally recommend Digital Credit Union. All online, based is MA. I've always got vehicle loans through them because they offer such great terms. They'd prob give you a shot.
Btw, i hope you're not using the personal loan to buy crypto or stocks. . . Because you're gonna get Bogged if you do.
impossible, that would cause a crash
i have no idea what banks you're applying to but i got a loan approved automatically and the money deposited to my account within 3 business days. I don't make much money either just have good credit.
Tell that to the cute blonde loan officer who gave me the details. Also she said alot of people are refinancing into personal unsecured loans with fixed terms.
I applied to both HSBC and Sainsbury's Bank. Both declined me, the interest rate for HSBC is 6.7% and I bank with them. Sainsbury's was 2.7%.
On Experian I have 986 score near perfect on my credit rating, I go to other credit rating agencies and they rate me highly too. i've no idea why I was refused.
I earn shy of 26K per year, no kids and can pay it back in 3- 4 years. I'm kind of confused why they refused me?
Also was thinking so long why they would decline me.
Only thing I can think of is I don't have a credit card/ use a credit card to pay for things day to day. But all direct debits I pay on time, I've never gone over my overdraft level, have 0 debt & hardly any out goings so I'm more than comfortable to pay for it.
Any anons could give me an idea why?
This user in particular have any idea why i got declined?
>26k a year
oh...that's why....
No sane lender would give 20,000 to someone who only makes 26K a year
It sounds like you're a britfag, so I can't really comment on your banks or system, but I imagine they're working under tighter covid lending standards like American ones. All banks are worried about people's ability to repay due to the pandemic lockdown shit putting people out of work. You said you can pay it back in 3-4 years easily, which I believe, but for some reason or another it doesn't look like it on paper. Like I said earlier, it's probably a debt-to-income ratio issue. Just ask your loan officer why you were declined and I'm sure they can tell you.
I believe the british equivalent of credit unions are "co-ops" or "building societies", but I don't know if they are similar when it comes to lending (more permissive, better terms). I would still look into one and shoot your shot though.
Good luck m80!
if you're not on the electoral roll then it may hurt you getting loans, also the credit card you mentioned you havent got a history of paying a balance off monthly
OP , don’t listen to these fucking retards they are speaking about things they have absolutely no experience in and are literally guessing and may aswell just not post
I got a £25,000 Loan from RBS in a couple of years ago while I earned £22,500 a year. It was over 5 years and I got accepted immediately for it and had the same credit rating as yourself and was only like 24 at the time.
So fuck these room temp IQ people replying, don’t listen big guy
This guy gets it, it’s probably because of COVID
>“Im going to buy internet money with it!” HODL :D
Rejected
>Sainsbury's Bank
>986 score
i can only assume that you are a bong and therefore i can't help you. credit is way easier to get in burgerland
What's it for OP?
What did you say the loan was for?
A new car and wedding for me and my fiance.
I mean I have ton of money saved up also with the loan would bump it up to nearer to 30k, but I don't want to literally use all my money on it so getting a loan which if I have left over money from the 30k I can pay off a good chunk of it, then pay off the rest within 2.5-3 years max I'd say.
Just read this post, disregard thisIf you don't have any debts currently, your credit score is probably a zero or it's not great. If you don't have any debts that you're paying on, there's nothing to score. That's probably why you were declined.
As the preceding anons stated, you're also not going to qualify for £20k with a £26k/yr income due to DTI. I just did the maths and you need to make more in order to qualify.
£20k loan amount (assuming no fees, there will be fees) for 4 years makes for a payment of about £476. Combine that with your monthly rent, which i assume is around the UK average of £950, and you have £1426 in monthly expenses. You make £26k/yr or £2167/mo. 1426/2167 = 0.658 or 65.8% DTI. My bank lends up to 45% DTI for lower tier credit and up to 50% DTI for high tier credit, I assume HSBC etc are prob around the same. Right now you only qualify for prob around £1000, and they might not even lend that little. To get a £20k loan, you'd need to make at least £38k and have a good credit score. Get a credit card and pay off the balance in full every month so you can maintain credit without having to pay (((interest))).
Again, good luck m80
Thanks m8 appreciate it.
Yeah i've no idea why I can't get the damn loan. I mean I'm probably going to pay it off quicker than usual, I'm calling HSBC & Sainsbury's bank up tomorrow morning to discuss why exactly they rejected the loan.
If its some dumb fuck reason I'm moving banks, no reason why your own bank who can see your in and out goings, how much you currently have and knows your credit rating is good and declines you still should keep your loyalty.
Don't use an unsecured personal loan to buy a car unless for some strange reason you absolutely cannot have a lien on the title.
You are ALWAYS going to get better terms and be more likely to be approved on a loan when there's collateral involved. Get a traditional auto loan to buy the car. You'll probably have better luck.
> taking out a loan for a fucking wedding
You deserve to be poor.
>He thinks people just have money laying around for a wedding
>He thinks I'm going to wait years of conservative spending and saving for the wedding
Stfu user, millions of people take out small personal loans for weddings all the time. I have savings but not willing to literally blow it all on a wedding let alone the car. Why would I do that?
If you have any other suggestions i'm all ears
if only people would be building a decentralized solution to this...
You won't get £20k on a £26k salary even if you can prove you can pay it back. I just tried on Lloyds pre-checker and I only have a 70% chance of a £20k loan on £55k
This may not have been an issue this time last year, but now banks are being very risk-adverse for personal lending. It's unfortunate
Thanks for the replies user.
My credit score is near perfect on Experion m8, same with other credit agencies.
I had a past debt I took out for furniture with Ikea just because I didn't want to blow 2k in one go when I wanted it, but when i saw it was affecting/ a risk factor on Experian I paid it off in full quickly.
>Combine that with your monthly rent
I live in a paid off house with my fiance, the only outgoings are like utilities and food we both contribute for in a joint account. Besides that the only outgoings are phone bill direct debit.
If what you say in your main paragraph is true then thats fucking grime m8. How is it people who earn 20-28k ballpark can ever do things like get a house loan? Loan for a wedding or buy a new car? I checked the car loan and the interest is honestly not worth it, it gets up to 20% with some companies.
There's surely got to be a way people can take a personal loan out earning what I do? If people can't even get 10k loans then how the fuck do people get around to getting anything majorly done in life?
Auto loans have higher interest rates though. Also not just for a car but wedding also, its just literally just 20k paying for that I'll chip in my own money too.
I mean are there stringent rules with personal loans I don't know about? The banks even ask in a list what is the loan for and car is at the top.
Shit man... I mean why wouldn't my own bank lend it to me though? Am I going to have to check what's the minimum I can lend or what? 15k? 10k? 5k? Its stupid.
I understand the economy isn't good and risk is higher but I don't understand if your own bank who can see your in and out goings wouldn't lend you the money. Oddly I tried TSB and they gave me the highest chance rating to get it at 30% which is shit, Sainsbury's bank was 10%.
If you have no rent payment and solid credit score then I don't really know brother. I'd have to see your credit report and know their lending standards. Like I said, it's probably due to Covid related belt tightening. Just ask your loan officer.
As for 20% auto loans, that's probably for subprime borrowers with absolutely abysmal credit. I'm talking post bankruptcy tier shit. You'll qualify for better than that with a solid score.