Keep getting fefused for a loan

[johncas]

I keep getting refused for loans because I have no credit history I don't want credit history or credit cards why do you need to have a wallet full of credit cards to get a loan I just want to borrow £2600 personal loan with a low apr unsecurred to buy a new scooter my current one has had it I earn 600-700 a month live with parents and pay nothing keep it all so paying back is not a problembe or am I better off going to the motorcycle dealer and asking for finance or will I just get refused for that.

I also sold some shares for £1000 but don't get the money for another month that would be used to pay the finance or loan

[sara3]

you have to be seen as a safe bet when borrowing money. £2600 is a lot of money compared to your monthly income.

you might get credit from the dealer, but watch the interest rate as it'll probably be very high.

[buildersmate]

Have you tried your own bank where your earnings go into? - they have a history on your earnings/income.
I would not think the issue is the ratio of the size of the proposed loan (£2600) to your monthly earnings (£600pm).

[ummmm]

I have a crazy idea....have you tried saving up?

[sara3]

buildersmate, I think if I wanted to borrow more than 4 times my monthly income the lender would want to be sure I could pay it back.

I wasn't suggesting this was the only reason he could not get a loan, just one of the reasons for a credit check.

[ummmm]

Is it still the case that the more credit checks you get done the more it goes against you?

[factor-fiction]

Maybe you should wait a month then you can use the £1000 from the shares. By then if you really want the scooter you you should have saved another £500. That only leaves £1000 to borrow. Maybe you could get a loan for that from your bank. Or if you wait a few months and put your money in a savings account each month you can save up enough to pay cash.

[carmalee]

also if you pay cash you are in a good position to get a cash discount. Having said that it is worth while building a good credit history for the future and the only way to do that is to take out and repay a loan etc.

[dasherman]

One good way to increase your credit rating is to take out a credit card. You don't have to use it too often - just to buy petrol, etc. But make sure you pay it off in full every month, that way it will show future lenders that you are capable of having and controlling your credit. It will also put you in good stead for when you buy a house and take out a mortgage.

[pink-kittens]

Not sure it's how many you apply for ummmm more the case of how many you are turned down for - the 2 go hand in hand

[gina32]

when you apply for credit and get turned down it goes on your credit file so then when you apply again the lender sees that you have been turned down and then turns you down again and so it goes on, as someone said try for a credit card that will help build your credit file up