Loan problems? HELP [Archive]

28th Jul 2001, 15:04

Hi,

Recieved a letter through the door this morning saying that my CDL with the Royal Bank of Scotland has been refused becasue I did not score high enough on the 'Credit Scoring System'. S*** I thought! How can a bank company expect a 19yr old to have great credit.

Can anyone recommend a bank to try, i've looked at Clydesdale and they look ok, i did a search and most people thoguth they were the best....anyone else been in the same position?

Cheers

clear prop!!!

28th Jul 2001, 18:27

Si,

You are right, they cannot score an 18/19yr old with any accuracy, unless you have defaulted on a loan or the like.

A CDL is underwritten by the Government so the Bank are not at risk, although they do have to demonstrate that as agents for this Government loan scheme they are acting responsibly.

I would give the Royal a ring and arrange to see them, get them to fully explain their rejection, it sounds a bit strange to me.

Having said that, the Banks want to be sure that you can complete the FULL course of training to the point where you have a vocational qualification and can earn enough to pay back the CDL and its exorbitant high rate of interest!.

Now that is where you might have fallen down. £8k won’t let you complete a CPL/IR from PPL…by a long way. They will want to know that you can fund the remainder, this might require a guarantee from your parents etc etc.

All the Banks who offer the CDL operate under the same rules, but it might be worth giving the Clydsdale a go.

Good luck

Tarmach

28th Jul 2001, 18:46

clear prop,

You don't even have to mention the IR bit! You could just mention the CPL and FI qualification, which comes to just over 8k providing Si has done the ATPL exams and required hour building.

Then it would be regarded as a full course to qualify you as a FI and further gain you employment!!

I thought anyone could get a CDL loan- as one of Tony's 'good' ideas to curb unemployment. I also though these CDL loans have low rates of interest? Is that not the case?

Tarmach

The Boy Lard

28th Jul 2001, 21:45

Hi this is the boy lard . Have a look at my profile and mail me and I will give you info on a benevolent bank manager with the HSBC.

Cheers TBL.

clear prop!!!

28th Jul 2001, 22:01

12.9% is not what I would call a low rate of interest!!
Still you do have a repayment holiday while you study, but it's still not cheap!

You are right about the CPL FIR bit Tarmach. I was assuming the worst, and that Si was starting out with just a PPL and had to spend way more than £8k, whatever route he took.

At any rate, the monthly repayment is a fair old chunk of an instructor's Winter pay!!! http://www.stopstart.fsnet.co.uk/smilie/sad.gif

Tarmach

28th Jul 2001, 22:32

12.9% is a ridiculous amount and trendy Tony should be ashamed of himself; seeing its a fully approved government scheme to help people gain employment. Tony though sees it as yet another way to bring in the old revenue! What aload of bul*sh*t!
:mad: :mad:

Still I thought anyone over 18 was allegeable for one of these 'wonderful' CDLs, no questions asked sort of thing!

Tarmach

28th Jul 2001, 23:15

You see the thing that gets me is that it says on the loan application form that if you have been unemployed for 3 months they will pay the full 100% of the loan but will only pay 80% if not....fair enough. BUT how can someone who has been unemployed for 3 months score effectively on thier 'Credit Scoring' system. At least i have some money coming in, maybe not loads but enough for the time being. VERY FRUSTRATING!

I'm deffinatley gonna ring on monday at 9.00am to find out whats going on!

Golden Monkey

28th Jul 2001, 23:47

Be careful with your loan applications - every one you submit and every credit check applied to you hammers your credit rating. In your situation there's probably not a lot going on that would counterbalance this so you've got to be careful!

It's a bit of a vicious circle, unfortunately - so do your research before applying anywhere new, and tell 'em not to do a credit check before you've actually submitted an application.

PFO

29th Jul 2001, 00:30

Hi TBL,

How are you? Have you started yet???

Nice article in the local paper about Mr Riddell at EGBO helping a helo in distress to land at Cosford!

PFO

29th Jul 2001, 01:17

Gash Handlin

29th Jul 2001, 03:21

Si,

Another thing to do is check your credit history with Experian or Equifax.

They are the credit checking agencies that are used by just about every financial business in the UK.

They hold an extrodinary ammount of data on you and your address, If anybody living at your address (or member of your family) has had credit problems in the past then this can appear on your credit history and can affect decisions. I know this from bitter experience but once I provided evidence that it was nothing to do with me they sorted it all out and subsequently everything I've applied for has sailed through (unfortunately coz I'm now mortgaged to the hilt :( )

The other problem you could have (if the above doesn't apply) is that if you've never had credit you won't have a credit rating so it's difficult to get credit so you can't get a credit rating so.....

Evo7

29th Jul 2001, 11:04

Equifax. Grrr.....

I was surprised to be turned down for a credit card a few years ago, and wrote to Equifax to get a copy of my credit record. Turned out they'd listed a full dozen CCJ's on a person I wasn't even related to on my record. Lived in the same town, same surname. My dad got a copy of his credit record and the same bloke was on that. First either of us knew about it was when I applied for credit.

Eventually got a notice put on there to say that this bloke was nothing to do with me, reapplied for the card ... and got turned down again, because my credit record now showed that I'd been previously been declined a credit card. :mad: :mad: :mad:

More letters and all eventually sorted, although not without much grief (remember, I'd now been turned down twice and they only amended the first refusal). But it makes me mad as hell that such an incompetent bunch of ********ers have such control over your financial affairs.

Tarmach

29th Jul 2001, 11:49

The CDLs are to help people find employment by funding training.

I'm not too sure whether your credit history would have much bearing on these CDLs. As its a government scheme and many people qualifying for them are unemployed and have been for some time.

Si, perhaps the paperworks been arsed up at the bank and theres been a mix up! If you don't mind me asking, what part of the training is it going to fund?

Tarmach

29th Jul 2001, 11:59

Tarmach,

This is going to help towards the cost of my Ground School for the ATPL's i start in October, so things need to be done pretty quickly. Another thing is that the Royal Bank is not the bank I use, I actually use the Halifax, so I'm going in to talk to them, at least they have all of my details on hand as I have been with them for 5 years.

Thanks for replying!

clear prop!!!

29th Jul 2001, 13:32

Si

If you are only just doing your ground school, you will need to go armed with details how how you are going to fund the rest of your training and how long it will take.

As I said earlier they look to giving CDLs with a view to the course they are given for enabling employment.

ie: If your ground school costs say £4k, where is the money for Hours, CPL, IR or FIC going to come from. Only once you have a COMPLETE 'course' can you gain employment, and that's what they want to know. Remember the max study period they will fund is two years (I think).

You can split your CDL between course providers, but it's a pain in the arse, as you need forms completed for, and signed by each one at the time of initial application. You can't just take £4k for your ground school and go back for more, as it's seen as another loan, and you have to have paid the last one back in full before you can stick in another application.

A CDL is fine if you are trying to fund the final stages of training, but it does not fit our proffesion at all well if you are just starting.

However, it can be done but you will need at least a letter from whoever is going to fund the rest.

Tarmach

29th Jul 2001, 15:02

Si,

keep us posted what happens ok!

An interesting link about CDLs is http://www.lifelonglearning.co.uk/cdl/

Whats this crap about learning providers. Do you have to name one such as OATS and then does the money go straight to them instead of going into your account? If so that sounds a little dodgy- paying up front!

Can someone help me, where can I find the URL which tells me what planet Tony Blair is on??!!

Thanks,

Tarmach.