bloody banks

[TANK0700]

18 year old Son applied online for a loan from the Lloyds TSB, he?s had an account with them for 3 years and wanted to buy a newish car it was only for ?1000 , he got a 2 page letter telling him he had been refused and they could not offer an explanation as the results are based on a credit scoring system that the banks operate and he never past it End of letter.



Ok never mind we will go down the guarantor route for him so Pam heads into the bank the Lloyds TSB this morning, we have been with them for 25 years and is told, sorry we don?t do guarantor loans any more so your son still can?t have his loan.



But this is the best bit, she then tells Pam he can have a credit card but he has to spend on it then pay it off and after 3 months we will give him a loan, ok correct me if I am wrong here but do I not turn on the TV day after day and the news is about people running up credit card / store card debts, the repossessions rates are at an all time high and they offer him a credit card but not a loan.



So off to the Halifax and Pam is told the same thing, sorry no loan but he can have a credit card not a problem.



Am I missing something here? What a bunch of :wank: so needless to say son not getting a loan. But he can run up credit cards debts no trouble.

 

[karlos2000]

double standards ...........

banks are shite. My son had a credit card issued in his name when he was at college, renting a house, & no job, no background check was made. He innocently signed a form expressing an interest in a card, all this to qualify for a "free popcorn" machine with Barclaycard, and someone (a sales monkey I guess) filled in the rest and got a credit card issued in his name at a fake address, he was 17 years old, with no credit rating, nothing. This came to light only 3 years later when the debt agency caught up with me at my new address (similar names). BUT, when he wanted to borrow some "real" money late last year, in his own name to start his business, all nice n legit, the bank refused him....... :wank:

So, I borrowed the money myself & he pays me.

 

[TANK0700]

So, I borrowed the money myself & he pays me.

i forgot to add this is the way we are going to sort it , but it still leaves him with out any credit history for the future.

got it in before the slagging off started

 

[Bluey]

Credit scoring was introduced by the Yanks over 30 years ago it was introduced to this country by a company called Avco in 1978/9 followed by others including banks like Barclays an the old TSB yours truly was responsible for some of this not all
It was meant to a cost cutting exercise to avoid useing companies like UAPT for credit checks


I am sorry

 

[Artemis]

Think about this. Credit cards cost more in interest than loans. Ergo, he can have a credit card , not a loan, as they make more from him.

 

[Pugwash]

You can get a free credit report on yourself online (http://www.experian.co.uk/creditreport/). As long as you cancel your subscription before the end of a month you pay nothing. I used it myself before applying for a new mortgage.

There was a story I read saying some banks refuse credit cards if you are known to always pay off credit cards in full! They don't like lending money to people who won't incur many charges.
c7u8

 

[TANK0700]

Thanks for the info guys and girls, he is off to look at a car this afternoon and hoping to get it on finance , its not the best way forward but its not a expensive car just a newer version of the one he had , I have explained to him he will be paying over the top doing it this way but it?s the only way he can get on the credit ladder I suppose, I just hope he can get the finance so fingers crossed,

 

[karlos2000]

cards & screwing the system

There was a story I read saying some banks refuse credit cards if you are known to always pay off credit cards in full! They don't like lending money to people who won't incur many charges.

not suitable for everyone's situation, but I have 3 cashback credit cards, Amex, Capital One and Morgan Stanley. I pay them all off fully each month. Capital One is the main one I use currently, as they gave 3% for the 1st three months of use, which has now ramped down to 1% (pa). Amex give more back the more you spend 'up to' a 2% max. Morgan Stanley used to be my chosen card when they gave a flat 2% cashback, but now give just 1% on the first ?2k, and 0.5% thereafter, which means I don't use it once I've done ?2k on it. If you then do all of your day to day spending on the cards and pay them off in full, you'll get a tasty lump sum every year for nothing. Plus you can keep your actual ready cash in the bank for 45 days (or so) earning interest too. Between the 3 cards, last year, I got over ?400 back, and no interest paid to them. It takes discipline, but if you can, you might as well screw them for a change. I paid enough to the financial institution (aka bastards) when I was younger!

Oh and never take payment protection insurance, it is worthless ..... stories of which are for another thread and another day ........
w;;v

 

[Pugwash]

I have no credit cards, have paid my mortgage on time for the last 15 years, and been with the same bank for 18 years, repaid any loans perfectly and my overall credit rating was still poor. It's a crap system.
The credit report includes a few values like likelihood to default, number of late payments in the last few years, etc.

 

[TANK0700]

I have no credit cards, have paid my mortgage on time for the last 15 years, and been with the same bank for 18 years, repaid any loans perfectly and my overall credit rating was still poor. It's a crap system.
The credit report includes a few values like likelihood to default, number of late payments in the last few years, etc.

says it all they will be making no extra money out of you so they give you a poor rating. i would like to think i fall into the came. pay off everything on time they hate that.

Pams brother lives in the USA and he had to buy crap just to get a credit rating its worse over there than here.

 

[andyBeaker]

Hmmmmmmmm.

speaking as one of 'the enemy', don't forget that there is a shortage of credit at the moment (AKA 'Credit Crunch')brok3. Like everything else, loans are 'supply and demand'. Most 'reputable' lenders are only doing top quality business at the moment; in simple terms, they can write top quality business AND charge higher than normal rates.

Nothing personal, but an 18 year old wanting to borrow ?1000 ain't in that category. He will probably get 'car finance' as this is very expensive and the dealer gets a very healthy commission. You should be able to get the screen price knocked down significantly if you take finance - especially if you buy in about the end of the third week of the month...............

Credit cards are volume business with high default rates, hence the astronomical interest rates. FFS don't take permanent debt on one as you will get slaughtered. Interest free etc is fine providing you can pay off in full before the interest free period finishes; ir is now almost impossible to replace one 'free' deal with anw 'free' deal and youwill get slaughtered;take it from me, there are loads of people in this position now.:cry:

 

[karlos2000]

there are loads of people in this position now.:cry:

I suggest here, good return, ethical, and I get 10% minimum back ... and I lend to anyone within reason > http://uk.zopa.com

credit crunch my bottom :-0)

 

[Punchy]

Banks are wank at lending.

You virtually have to prove you dont need the money to be accepted for a loan.
Many years ago I was paying someone else to do my computer processing. I asked the bank for a loan to purchase my own computer, the value of which was less than my annual outgoings for this service..guess what the wankers turned me down!!!
I did manage to raise the funds from another source and ditched the bastids as soon as possible..

:bang:
.

 

[Pugwash]

I asked my bank for a loan last month - self employed. For ?3k. They offered an overdraft facility instead so I could pick my own repayment duration.
When he asked what the money was for I said "an unexpected bill, from the tax man".
No problems :yo: He knows they'll make money off me.

 

[mick the knife]

My bank wrote me a lovely letter to inform me they have ?75,000 put aside especially to lend to me as a personnel loan. Now that is kind of them.

 

[Pugwash]

Do it. You could move house quite quickly with that sort of deposit? h1d1ng2

 

[TANK0700]

My bank wrote me a lovely letter to inform me they have ?75,000 put aside especially to lend to me as a personnel loan. Now that is kind of them.

Pam got one off the Halifax but it was only for ?16500 not in your league MTK. Anyway we have gone down the finance route with me as guarantor it?s not mega bucks but it gets him into the habit of looking after his money, to be fair it?s a nice car so if he misses a payment I will have it (only Joking). He finds out on Monday but the guy said he didn?t think there would be any problems.



I have told him if he gets it to write to the bank and tell them to stuff there loan application up there #####. There?s a nice little bit at the end of the letter that says if you want to discuss this with us please call, he did and was told sorry we can tell you any more you have been declined and that it, so why write please call. ? :wank:



We have a loan finishing in 4 months and its surprising how nice the Halifax are being to us, nice letters asking me to ?pop in? for a chat to see if they can help in anyway , arrrrrrr that?s nice.

 

[Pugwash]

Just about every time I visit a bank they suggest I have a chat with a financial advisor. Dunno why, I can spend money fine? I think it's been 18 years since I had a chat, when I opened the account!