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    • eljay555
    • By eljay555 7th Mar 17, 1:52 PM
    • 1Posts
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    eljay555
    Refused loan even though excellent credit score
    • #1
    • 7th Mar 17, 1:52 PM
    Refused loan even though excellent credit score 7th Mar 17 at 1:52 PM
    Hi,

    I've been refused credit even though I have no debt, an excellent credit score with both Experian and call credit and no negative factors against me. All addresses and names are accurate and I have no bankruptcy or court orders against me.

    I was asking for a loan that was well within my monthly ability from my building society. I don;t understand why I have been refused. Who can I ask for the reasons why I am being refused credit so I can work on improving that area.

    Thanks
Page 1
    • zx81
    • By zx81 7th Mar 17, 1:58 PM
    • 14,405 Posts
    • 15,203 Thanks
    zx81
    • #2
    • 7th Mar 17, 1:58 PM
    • #2
    • 7th Mar 17, 1:58 PM
    What do your credit file show? What is your history like? How much were you looking to borrow and how much do you earn? Have you check all three files?

    As you've found out, your credit score means nothing. It's all about the data.
    • robber2
    • By robber2 7th Mar 17, 5:28 PM
    • 285 Posts
    • 232 Thanks
    robber2
    • #3
    • 7th Mar 17, 5:28 PM
    • #3
    • 7th Mar 17, 5:28 PM
    Best people to ask will be the ones who refused you a loan.
    • Chappaz
    • By Chappaz 7th Mar 17, 10:47 PM
    • 130 Posts
    • 57 Thanks
    Chappaz
    • #4
    • 7th Mar 17, 10:47 PM
    • #4
    • 7th Mar 17, 10:47 PM
    Hi,

    I've been refused credit even though I have no debt, an excellent credit score with both Experian and call credit and no negative factors against me. All addresses and names are accurate and I have no bankruptcy or court orders against me.

    I was asking for a loan that was well within my monthly ability from my building society. I don;t understand why I have been refused. Who can I ask for the reasons why I am being refused credit so I can work on improving that area.

    Thanks
    Originally posted by eljay555
    You may not fit their customer profile. CRA checks are not just about risk assessment but also about customer profiling, i.e. whether they consider you the type of customer they want based on your credit history.

    But even a perfect score doesn't guarantee that anyone will be accepted for any type of credit they apply for. There's unlikely to be anyone who experiences that because all lenders are looking for slightly different things.

    In the case of your credit file, do you have any past experience of repaying loans?

    If you don't, this may be your problem. You could have a great score based on a history of successfully repaying credit cards, mobile contracts, bills, car finance and all sorts. However, what the lender is going to be most interested in is your history of repaying the type of loan they want to offer. Even if you score well on everything else, a lack of loan repayment history to go on will always make you come out as higher risk for them.
    • StopIt
    • By StopIt 8th Mar 17, 8:31 AM
    • 1,449 Posts
    • 1,239 Thanks
    StopIt
    • #5
    • 8th Mar 17, 8:31 AM
    • #5
    • 8th Mar 17, 8:31 AM
    Hi,

    I've been refused credit even though I have no debt, an excellent credit score with both Experian and call credit and no negative factors against me. All addresses and names are accurate and I have no bankruptcy or court orders against me.

    I was asking for a loan that was well within my monthly ability from my building society. I don;t understand why I have been refused. Who can I ask for the reasons why I am being refused credit so I can work on improving that area.

    Thanks
    Originally posted by eljay555

    Remember when these credit checks are made, the CRA's don't actually know your income or expenditure outside of the things tracked, so the affordability check is based on your stated income less what the CRA/Bank assume would be your monthly outgoings.


    You may well have failed an affordability check based on this, which alas, your lender will not tell you as the reason you get rejected. Your best bet is to go into your Building Society in person and asking what loans they can offer. You may have to accept a lower loan, or higher APR, or they may not offer you anything, but it's worth going in to ask.


    Of course, there's loan checking tools on MSE that do not leave a "hard search" on your credit history so it may be worth to check them too.
    • GothicStirling
    • By GothicStirling 8th Mar 17, 6:59 PM
    • 987 Posts
    • 726 Thanks
    GothicStirling
    • #6
    • 8th Mar 17, 6:59 PM
    • #6
    • 8th Mar 17, 6:59 PM
    Have you had any recent debt, that will prove that you are a good bet to repaying on time? No credit history can be just as bad as a poor credit history.

    Do you have your own place or are you still with your parents. What you call affordable, depends on your living arrangements (if your still at home, is that affordable repayment still affordable if you have rent and utilities to pay for?)
    • Marisa1978
    • By Marisa1978 12th Mar 17, 3:53 PM
    • 2 Posts
    • 0 Thanks
    Marisa1978
    • #7
    • 12th Mar 17, 3:53 PM
    • #7
    • 12th Mar 17, 3:53 PM
    Hi,


    I'm in the same boat - just come back from trying to buy a TV and Hoover from a well known store (who I have borrowed from before and who I've paid everything off from - even paying stuff off early last year.


    The loan came to just over £1000 so I just don't understand. Called the company and they have confirmed that I have nothing outstanding and I have a 999 out of 999 score on Experian. The loan company can't tell me why so I just don't understand. Have checked through every loan I have outstanding and all are up to date. I have no bad debts/lots of equity in my house.
    • DCFC79
    • By DCFC79 12th Mar 17, 4:29 PM
    • 30,437 Posts
    • 19,240 Thanks
    DCFC79
    • #8
    • 12th Mar 17, 4:29 PM
    • #8
    • 12th Mar 17, 4:29 PM
    Hi,


    I'm in the same boat - just come back from trying to buy a TV and Hoover from a well known store (who I have borrowed from before and who I've paid everything off from - even paying stuff off early last year.


    The loan came to just over £1000 so I just don't understand. Called the company and they have confirmed that I have nothing outstanding and I have a 999 out of 999 score on Experian. The loan company can't tell me why so I just don't understand. Have checked through every loan I have outstanding and all are up to date. I have no bad debts/lots of equity in my house.
    Originally posted by Marisa1978
    The loan company probably cant or even aren't allowed to tell you what the issue is.

    Your score of 999 isn't seen by lenders. whats exactly on your credit report.

    Did the loan company even use Experian, could have used 1 or both of the other 2.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Marisa1978
    • By Marisa1978 12th Mar 17, 4:58 PM
    • 2 Posts
    • 0 Thanks
    Marisa1978
    • #9
    • 12th Mar 17, 4:58 PM
    • #9
    • 12th Mar 17, 4:58 PM
    Credit Score - Good (on noodle) and Excellent on Experian which were both recommended by the store in question.
    Personal information - all correct.
    Financial a/c information all up to date/no outstanding amounts owed.
    Have had several loans with the same company before/never missed a repayments - even paying two loans back early last year. I called the company and they confirmed that I have nothing outstanding with them.
    The only thing I can think off is maybe when the store were filling in my work details - the address didn't come up when the postcode was entered and instead of putting my work landline in (which they have done when I have previously bought items) they put my mobile number in.
    When I spoke to the lender - she said she couldn't tell me why I had been refused. So at a loss.
    • maas
    • By maas 12th Mar 17, 5:54 PM
    • 473 Posts
    • 324 Thanks
    maas
    There can be lots of factors at play, income, current levels of debt. You say you have checked through every loan you have outstanding, how many do you have, whats the total level of debt?

    The problem with credit scoring agencies is that their scores are based on incomplete information. They check your credit history and give you a score based on that. They dont take into account affordability, employment status or the lender itself, which is all extra information you give when you ask for credit.

    That's a reason why so many people are confused when credit scoring agencies give a great score and then the lender says No.
    • DCFC79
    • By DCFC79 12th Mar 17, 6:07 PM
    • 30,437 Posts
    • 19,240 Thanks
    DCFC79
    Credit Score - Good (on noodle) and Excellent on Experian which were both recommended by the store in question.
    Personal information - all correct.
    Financial a/c information all up to date/no outstanding amounts owed.
    Have had several loans with the same company before/never missed a repayments - even paying two loans back early last year. I called the company and they confirmed that I have nothing outstanding with them.
    The only thing I can think off is maybe when the store were filling in my work details - the address didn't come up when the postcode was entered and instead of putting my work landline in (which they have done when I have previously bought items) they put my mobile number in.
    When I spoke to the lender - she said she couldn't tell me why I had been refused. So at a loss.
    Originally posted by Marisa1978
    You can be rejected for a loan or finance at any time.

    It definitely wouldn't have been anything to do with your mobile number entered instead of your work landline, the number used has no bearing on the decision.

    Save up what you need. I bet a loan of £1000 would've had a high apr. A 0%apr credit card for purchases an option for you ?
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
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