Personal Loans etc as a contractor - hassle getting them?

[psychocandy]

Oh well, no joy with RBS getting an extra £10K. Even though, there's £100K+ equity on the property, they still want minimum 2 years accounts.

I guess if I was a permie who'd been working for 6 months earning £30K a year they wouldnt mind. Even though I could be made redundant with zero comeback/payment/anything at a moments notice.

Very short-sighted. After all, loan is secured against the home. If I dont pay, they aint exactly going to lose out if they have to repossess are they?

[northernladuk]

You do a lot of guessing. Maybe that is the root of your problems.

[Mister Clark]

Companies do not turn you down at random. There is no such thing as a global credit score anymore, each product is aimed at a certain market and if you do not fit the criteria you won't get it. There are cards aimed at people with average credit history that you will not get if you have a spotless one (which is highly frustrating). They aim to make certain amounts of cash from this product and someone who has paid it off every month and never incurs interest isn't right for that product.



So they will have looked at your history and decided that is exactly what you are going to do so declined you. Someone who is up to their eyeballs with store cards and pays lots of interest on them may have got it.

Getting turned down also sits on your credit record. Go get your reports from Experian and Equifax and go through it with a fine toothed comb and question anything you don't agree with. Having too much credit available but not used is one of the biggest mistakes people make. Companies are cautious about giving you credit when you are potentially in the situation to use all the credit you have and can't pay back for example.

I couldn’t agree with this more.

I'm 29, earn 100k+ a year, never had a loan, pay my car/house insurance up front, never had a late payment on a credit card - only debt I have is my mortgage of 80k.

I moved home last year and wanted to put 4K worth of moving 'costs' on a interest free credit card for 12 months until my next divi could be paid.

I got turned down for every card except for one called Vanquis or some such at 40% interest if I remember correctly.

I got a credit report - spotless. Spoke to a customer service guy and he told me I was probably turned down because they were unlikely to make any money out of me. Had to get the Mrs to apply for one which they posted out straight away.

Absolute joke.

[northernladuk]

I couldn’t agree with this more.

I'm 29, earn 100k+ a year, never had a loan, pay my car/house insurance up front, never had a late payment on a credit card - only debt I have is my mortgage of 80k.

I moved home last year and wanted to put 4K worth of moving 'costs' on a interest free credit card for 12 months until my next divi could be paid.

I got turned down for every card except for one called Vanquis or some such at 40% interest if I remember correctly.

I got a credit report - spotless. Spoke to a customer service guy and he told me I was probably turned down because they were unlikely to make any money out of me. Had to get the Mrs to apply for one which they posted out straight away.

Absolute joke.

On paper it looks like you don't have enough credit history for this one possibly? One mortgage app and a credit card or two doesn't give them a lot to go on.

'Tis bollocks they way to do all this I agree though.

[Mister Clark]

On paper it looks like you don't have enough credit history for this one possibly? One mortgage app and a credit card or two doesn't give them a lot to go on.

'Tis bollocks they way to do all this I agree though.

I haven’t gone through my whole history so observation about lack of history is fair.

I stopped applying for any credit (other than mortgage) when I started contracting 5 years ago, didn’t really need to borrow any money.

My general point alludes more to the crazy way the people in the banks decide who gets money and who doesn’t - my GF is permie earning a quarter of what I do and they are happy to extend 7.5k worth of credit her way (she also has no credit history so I guess the permie job is what swung it). Madness.

Off topic but I got rejects by HSBC for a mortgage - the monthly payments was 500ish quid - I work for 1.5 days a month and I could cover it but they turned me down due to my 'self employed' status.

I'll stop my rant now, but lending criteria is one thing that really annoys me!

[psychocandy]

You do a lot of guessing. Maybe that is the root of your problems.

Which problems? My erectile disfunction one? How do you know about that?

[psychocandy]

I couldn’t agree with this more.

I'm 29, earn 100k+ a year, never had a loan, pay my car/house insurance up front, never had a late payment on a credit card - only debt I have is my mortgage of 80k.

I moved home last year and wanted to put 4K worth of moving 'costs' on a interest free credit card for 12 months until my next divi could be paid.

I got turned down for every card except for one called Vanquis or some such at 40% interest if I remember correctly.

I got a credit report - spotless. Spoke to a customer service guy and he told me I was probably turned down because they were unlikely to make any money out of me. Had to get the Mrs to apply for one which they posted out straight away.

Absolute joke.

Isnt Vanquis the one aimed at people who've got a tulipe history so they can attempt to rebuild their credit rating? Like you said, scandalous interest rates...

[kingcook]

Isnt Vanquis the one aimed at people who've got a tulipe history so they can attempt to rebuild their credit rating? Like you said, scandalous interest rates...

Yep - it is.

I got one a few years back, but only for the purpose of claiming around £50 quidco cashback

[Mister Clark]

Isnt Vanquis the one aimed at people who've got a tulipe history so they can attempt to rebuild their credit rating? Like you said, scandalous interest rates...

Yes it is - or those with a lack of history I would presume. Either would be equally risky I presume.
I see the logic to a certain degree but dont agree with it - its that sort of thinking that's lead to a global recession.

[psychocandy]

Yep - it is.

I got one a few years back, but only for the purpose of claiming around £50 quidco cashback

I got a payday loan once. It was something like borrow £80 pay back £100 but £50 quidco cashback which is why I did it.

Can see why people get in trouble with this. The buggers constantly hassled me to extend and I get tons of emails offering me payday loans.