Good score but turned down- what now?

13

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  • DCFC79
    DCFC79 Posts: 40,598
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    Are you the OP?

    Im going to say yes.
  • It wasn't sarcasm. It was a statement of fact.

    If its a fact its one I wasn't aware of. Can you point me to the evidence please?
    Problem one with that is that the staff member you spoke two may not know. A generic "computer says no" is the reason. Problem two is the loan fraud would increase dramatically if specific fail reasons are highlighted.

    Fair point.
    Credit files show minimum payers. Lenders can look at minimum payments negatively. It's a sign of a stretched budget. Pay £1 or more extra every month and the minimum payment marker disappears. In good time you will be seen as a better credit risk.

    Again fair point. Which is why i suggested exactly that course above.
    £25,000 is a very large personal loan. Good income or not, lenders are very careful about chucking that kind of money around. Others in your position have every intention of making it their last loan. But then get tempted to spend again. A bathroom. A car. A holiday. A weekly "I'll just put that on the 0% card" that within a year has a few thousand of new debt on it.

    Again very true. But Im trying to find the quickest, cheapest way to solve this issue and Im sorry to say no one has come up with a better one so far. Im planning to close one card and reduce the limit on the other to minimise temptation but you are right better people than me have fallen into the same trap! My first priority is to pay this off ASAP!
  • DCFC79
    DCFC79 Posts: 40,598
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    Thats kind of my point- they dont know that and there is no way they can.

    What they do know for a fact is that Ive got a good income in a long term job, a mortgage ive never missed a payment on, no CCJs, successful paid off loans and no defaults. In their books I would hope these are considered positives against the negatives that I have high credit card debt. Perhaps thats heavily weighted in their algorithm?

    What im confused about is the reason why it was turned down despite these factors which is why i turned here for advice.

    You wont find out why you were turned down.
  • DCFC79 wrote: »
    Im going to say yes.

    I am indeed- if you look back at my old post it concerns the exact same issue.

    Couldn't find my login for this account but its signed in on my ipad hence the name change.
  • DCFC79
    DCFC79 Posts: 40,598
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    I am indeed- if you look back at my old post it concerns the exact same issue.

    Couldn't find my login for this account but its signed in on my ipad hence the name change.

    Use the forgot password option.
  • Candyapple
    Candyapple Posts: 3,384
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    OP have you checked what is showing on your other 2 files?

    The free versions to check your credit files are below:
    Experian: https://www.moneysavingexpert.com/creditclub
    Call Credit: https://www.noddle.co.uk
    Equifax: https://www.clearscore.com

    Lenders do not see your credit score - it's a marketing tool created by credit reference agencies used to sell their premium services.

    They do, however, see your credit history which is (should?) be an accurate record of credit accounts and applications for credit.

    Your eligibility is not solely based on one factor; any combination of the following factors might be taken into consideration:

    - amount of existing debt
    - amount of existing available credit
    - history of settled accounts
    - history of incurring defaults
    - number of recent applications for credit
    - age
    - whether single, married, widowed, separated or divorced
    - whether home-owner, tenant or living with parents
    - whether you're on the electoral register
    - current employment status
    - length of time with current employer
    - salary

    This is by no means an exhaustive list and how each credit-provider assesses you is different; some companies may not consider many of these factors, some may consider even more. Certain factors may not carry any weight and some might dictate the decision-making process completely - you'll never know.

    There is no one rule and the only way you'll know is if you apply and are accepted; ultimately, it's up to each company whether they want to give you a loan or not and on what terms. They have no obligation to lend to anyone nor explain or justify their lending criteria.


    Some questions for you:

    1. Are you on the electoral roll (does it show on all 3 files?)

    2. Does the £25k loan you have paid off show in the settled section on your credit files? (on all 3) Or is it still showing as a 'live' account?

    3. What is your annual salary?

    4. Please list all credit card limits along with outstanding balances. Same goes for car finance and any overdrafts.

    5. Do you have any late payments / defaults / CCJs?

    6. Do you have many other 'credit' accounts showing on your files such as bank account / mobile phone etc.?

    7. How many credit applications have you made in the last 12 months?
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
  • pjcox2005
    pjcox2005 Posts: 1,014
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    Again very true. But Im trying to find the quickest, cheapest way to solve this issue and Im sorry to say no one has come up with a better one so far. Im planning to close one card and reduce the limit on the other to minimise temptation but you are right better people than me have fallen into the same trap! My first priority is to pay this off ASAP!



    I know it's not your question, but I would suggest those advising on a statement of affairs/budget are giving you the best option. Maximises cash available to pay off existing debts, will give an idea of salary and total levels so advice can also be given on loans, snowballing or perhaps balance transfers or 0% cards as an alternative to the loan.


    If you think there is headroom to pay off a significant amount in 3 months, then it would vastly reduce the amount being borrowed improving chances of getting a new loan/debt too.
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    If its a fact its one I wasn't aware of. Can you point me to the evidence please?
    Read this forum for 48 hours. The obsession with "my credit score is the square route of a huge number but I can't get a loan" posts is your evidence.
  • Pixie5740
    Pixie5740 Posts: 14,515
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    edited 16 May 2017 at 12:06PM
    If its a fact its one I wasn't aware of. Can you point me to the evidence please?



    Is the search button broken on the forum? (For the avoidance of doubt that was a bit sarky :D)

    MSE Martin even produced this handy guide. Then went on to set up MSE Credit Club where people could view their Expirian Credit Score. :doh:

    http://www.moneysavingexpert.com/loans/what-credit-scores-mean
  • Puddylove
    Puddylove Posts: 507
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    Puddylove I'm sure you mean well but I'm afraid you are letting your imagination run away with you here and trying to put words into my mouth.

    The previous 25k loan was for my kitchen- I never mentioned anything about consolidation. To be fair its a nice kitchen. You are inferring this is a recurring cycle which is not true.

    Where did "only just able to make minimum payments" come from? I realise not dealing with this earlier is stupid and expensive but nonetheless here I am coming up with an achievable plan.

    I appreciate your concern but please don't make up facts to suit your assertions. There are a number of people on this site who genuinely face financial hardship and come here desperate for help. Whether through good luck or hard work I am not one of them for the moment at least -you never know what the future holds.

    Therefore my problem is small in comparison but I came hoping for honest advice about a specific question but the thread seems to have spun off into a general discussion about my finances.. One way or another I'll pay this off in the next few years- hopefully the quickest, cheapest way. Trying to shoehorn me into another issue altogether doesn't do you any credit, but I appreciate your best wishes.

    I did ask rather than state whether the £25k loan was for consolidation, but I'm sure it's a lovely kitchen.

    The 'minimum payments' part was directly from your posts!

    And from where I'm looking - you are edging closer to trouble, with credit cards with high interest rates that you are only paying the minimum on (not a good sign to lenders), and an inability to get another loan.

    Many of us have been there - learn from our mistakes, and sort things out before you are in trouble rather than after.

    Maybe think what you spent the cc money on - if it was just living expenses, that might be more worrying. And if you aren't paying £600 a month towards a loan - maybe you could use the snowball method to pay off some debt?

    Don't know. I wish you success in getting a low rate loan.
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