Debt Questions

hi,
basically my boyfriend wants to get a loan to buy a car from his friend.

he applied to tesco bank and was rejected straight away

so we checked his credit report on experian and there was absolutely nothing on it that was bad or adverse, there just wasn't much on it as he only has one credit card,some pay monthly thing with currys for his tv (which only has 1 month left on it) and a catalogue that he never uses.

he earns around £1300 a month after tax so he can more than afford a loan, its just trying to find somewhere that will give him one without having to apply to loads of companies as that damages your score.

any ideas what to do?
thanks

It's probably only that some loan companies want to see more positive "action" i.e. other loans being paid back correctly.

However, rather than take out loans to prove that you can pay them back, (not really sensible... ) I'd just apply to another loan company for the car loan: different rules apply to different companies and he might well be accepted with open arms by another company.

It's worth giving a warning though, that if he is rejected by another company, don't just keep trying others in a short space of time, because multiple applications can ring alarm bells on your report. Give it 6 months or so if another loan should be rejected.

Good luck!

Submariner has hit the spot!

thanks,
does anyone know of any companies that would accept him? or do you think he might have a better chance of getting a bank loan as his bank is always offering him 1?

No one can answer that, as each company sets their own criteria as to who is acceptable and who isn't, and that is based solely on the individuals circumstances.

10 people could approach 2 companies, one could accept 5 and reject the other five, and the other company could do exactly the reverse.

I have even known one company reject someone one day, and then accept them he next, as their automated scoring system literately changed the score requirements overnight!

Tim

thanks