Can anyone tell me why ive been turned down for a loan (£7500) when between me and my wife we earn 55% more than all our monthly expenses (inc mortgage).

I wanted to get a new car 6 months earlier than id planned for, so i rang asda loans who told me that due to not having a credit card and not owing anybody any money, we are not viable.

Is it true that because your very good with your money, (i.e paying £300pm over my tracker mortgage rate to get it down quicker and never,ever going overdrawn), that theres no point applying?

Any advice would be helpful

Mookie

Silly isn't it! This is just a sign of the times.

If you don't have a high credit rating, which would be generated by reliably repaying various forms of credit, it can be difficult at the moment to obtain loans.

What I would suggest is that you both obtain your credit records and credit rating. Experian offer a free trial for the credit record and their is a small fee for the credit rating. You can then check whether the information held is correct and how you are rated.

Once you are aware of this information, you could approach the bank who you hold your account with. If you have held an account with them for awhile and have a good record, they may be more willing to lend. Also another possibility is obtaining a finance agreement through the garage you purchase a car through. I have read posts from some, who have been turned down for 'high street' loans but have had no problem getting a finance agreement with a garage. Just make sure the garage do not con you into buying extra warranties or expensive service agreements.

Huckster