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  • FIRST POST
    • willberforce
    • By willberforce 19th Mar 17, 4:22 PM
    • 3Posts
    • 0Thanks
    willberforce
    Reapplying after a loan rejection
    • #1
    • 19th Mar 17, 4:22 PM
    Reapplying after a loan rejection 19th Mar 17 at 4:22 PM
    Hi all,

    I was rejected for a 16k loan with Clydesdale. A rookie error - I am not registered on the electoral register at this address. So I will correct this. But, now I need to reapply for a loan with another company. I'm trying to write to Clydesdale to explain that I'm correcting this information, but I'm guessing that this is going to count as a strike on my credit rating.

    Once I'm on electoral register, how long should I wait for reapplying for a loan?

    Thanks for any help, I know I should have done a bit more homework before applying, so trying to make a better job of the next application!
Page 1
    • DCFC79
    • By DCFC79 19th Mar 17, 4:41 PM
    • 29,736 Posts
    • 18,827 Thanks
    DCFC79
    • #2
    • 19th Mar 17, 4:41 PM
    • #2
    • 19th Mar 17, 4:41 PM
    It will count as a strike on your credit history, well a search was made, wont say it was a rejection. No 1 but you can see your credit rating.

    Wait for the address to be updated and then apply again.

    Maybe the amount you were asking for was for the rejection.
    Last edited by DCFC79; 19-03-2017 at 4:44 PM.
    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.
    • SparklesJD
    • By SparklesJD 19th Mar 17, 4:55 PM
    • 72 Posts
    • 110 Thanks
    SparklesJD
    • #3
    • 19th Mar 17, 4:55 PM
    • #3
    • 19th Mar 17, 4:55 PM
    Being refused for credit once won't have a long-term impact on your score. Yes, lenders can see the search has been performed, but can't see the reason for the refusal (I don't think they can even see the result of the search, although I'm not 100% on that - they can see that no corresponding product has been opened certainly).

    There's no 'black list' - it's just that for whatever reason, Clydesdale decided that you didn't fit the profile of applicants that they want to lend to, it doesn't mean that other lenders won't lend, they all have their own criteria.

    The important thing is not to make another application unless you're reasonably certain that it will be accepted - a number of applications in a short space of time will look bad, as it makes you look desperate - you've heard the truism that banks prefer to lend to people who don't need a loan?

    Being on the electoral register will, as you've identified, help your score. So will lots of other factors.

    To give yourself the best chance of being successful at a loan application, I'd suggest getting a copy of your credit report, if you haven't already done so to check that there's nothing on there that will adversely impact your score - https://debtcamel.co.uk/best-way-to-check-credit-score/ has various ways to do this.

    I'm not sure why you'd bother letting Clydesdale know that you'd registered on the electoral roll? Chalk it up to experience and move on.

    You can use the 'soft searches' on comparison sites (and MSE!) to help you work out your chances of being accepted before committing to a full application.
    Last edited by SparklesJD; 19-03-2017 at 4:57 PM.
    • willberforce
    • By willberforce 19th Mar 17, 5:21 PM
    • 3 Posts
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    willberforce
    • #4
    • 19th Mar 17, 5:21 PM
    • #4
    • 19th Mar 17, 5:21 PM
    Thank you both

    I subsequently checked on mse, and there was only a 20% chance of me being approved!

    I will chalk this down to experience, as you say, and reapply with a bank that I have a better chance with

    I know that there's a number of things that I can do to improve my rating - I'll check out the list, but is repaying a current loan outright and early likely to be one of them? I have £444 with hitachi finance that Im 6/12 months through that I could pay off if that boosts my chances
    • DCFC79
    • By DCFC79 19th Mar 17, 5:48 PM
    • 29,736 Posts
    • 18,827 Thanks
    DCFC79
    • #5
    • 19th Mar 17, 5:48 PM
    • #5
    • 19th Mar 17, 5:48 PM
    Thank you both

    I subsequently checked on mse, and there was only a 20% chance of me being approved!

    I will chalk this down to experience, as you say, and reapply with a bank that I have a better chance with

    I know that there's a number of things that I can do to improve my rating - I'll check out the list, but is repaying a current loan outright and early likely to be one of them? I have £444 with hitachi finance that Im 6/12 months through that I could pay off if that boosts my chances
    Originally posted by willberforce
    Your history is what lenders, banks can see, not the rating.
    It probably wont matter if you repay early or not, if your happy paying it monthly then keep it as it is.
    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.
    • SparklesJD
    • By SparklesJD 19th Mar 17, 6:50 PM
    • 72 Posts
    • 110 Thanks
    SparklesJD
    • #6
    • 19th Mar 17, 6:50 PM
    • #6
    • 19th Mar 17, 6:50 PM
    Lenders see both your rating and the history, but they each have their own criteria. Where a lender has more than one type of credit, each 'product' will have a criteria in terms of minimum income, other borrowing, voter registration, etc.

    What they will see is the type of product, e.g. 'personal loan' how much it originally for and how much is outstanding, then the history of repayments for the account.

    Late payments will obviously impact your score negatively, but early repayments probably won't have a huge benefit, unless you have a lot of outstanding debt, in which case your score will improve if you can reduce it (but again, each lender will have their own criteria of what they are comfortable with in terms of outstanding commitments).

    It will usually cost you less if you can pay it back earlier, but remember that some lenders charge an early repayment fee.

    Will Hitachi not lend you more? They're offering a fairly low rate I noticed advertised at a station the other day.
    • DCFC79
    • By DCFC79 19th Mar 17, 7:50 PM
    • 29,736 Posts
    • 18,827 Thanks
    DCFC79
    • #7
    • 19th Mar 17, 7:50 PM
    • #7
    • 19th Mar 17, 7:50 PM
    Lenders see both your rating and the history, but they each have their own criteria. Where a lender has more than one type of credit, each 'product' will have a criteria in terms of minimum income, other borrowing, voter registration, etc.

    What they will see is the type of product, e.g. 'personal loan' how much it originally for and how much is outstanding, then the history of repayments for the account.

    Late payments will obviously impact your score negatively, but early repayments probably won't have a huge benefit, unless you have a lot of outstanding debt, in which case your score will improve if you can reduce it (but again, each lender will have their own criteria of what they are comfortable with in terms of outstanding commitments).

    It will usually cost you less if you can pay it back earlier, but remember that some lenders charge an early repayment fee.

    Will Hitachi not lend you more? They're offering a fairly low rate I noticed advertised at a station the other day.
    Originally posted by SparklesJD
    Unfortunately lenders, banks dont see the credit rating/score, if you know different do let us know.
    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.
    • ReadingTim
    • By ReadingTim 20th Mar 17, 12:23 PM
    • 1,830 Posts
    • 2,667 Thanks
    ReadingTim
    • #8
    • 20th Mar 17, 12:23 PM
    • #8
    • 20th Mar 17, 12:23 PM
    £16k isn't a small amount to borrow. How much do you earn?

    I suspect the amount you wish to borrow compared to your income is the larger stumbling block than whether you're on the electoral roll or not, and this factor will be pretty common regardless of lender.
    • SparklesJD
    • By SparklesJD 21st Mar 17, 5:41 PM
    • 72 Posts
    • 110 Thanks
    SparklesJD
    • #9
    • 21st Mar 17, 5:41 PM
    • #9
    • 21st Mar 17, 5:41 PM
    Unfortunately lenders, banks dont see the credit rating/score, if you know different do let us know.
    Originally posted by DCFC79
    I work for a credit union, we use Experian, we see the applicant's score. We don't use it, as we're more interested in the history, but we do see it.

    It might be that the level of automation with other lenders means that all they would see is a decision?
    • stuart30
    • By stuart30 22nd Mar 17, 9:34 AM
    • 495 Posts
    • 218 Thanks
    stuart30
    I work for a credit union, we use Experian, we see the applicant's score. We don't use it, as we're more interested in the history, but we do see it.

    It might be that the level of automation with other lenders means that all they would see is a decision?
    Originally posted by SparklesJD

    Well that flies in the face of all those people on here who keep shouting that your credit score is fictitious and is never seen.

    Glad you have let us know that's not always true.

    Might be as you say the level of automation with other lenders means that all they would see is a decision or they also see the score and it gives weight to the decision.
    • willberforce
    • By willberforce 28th Mar 17, 9:37 PM
    • 3 Posts
    • 0 Thanks
    willberforce
    I'm earning circa £35k per annum, so I wonder whether I'm being unrealistic with a loan application of 16k..
    • bazzyb
    • By bazzyb 28th Mar 17, 9:56 PM
    • 1,009 Posts
    • 3,158 Thanks
    bazzyb
    Your income is a key factor, but it's not the only consideration. You mention an outstanding £444 loan - is that the only borrowing you have? To jump from a £444 loan to a £16000 is a big difference and a massive gamble for the lender.

    What is the loan for?
    • horseymchorseface
    • By horseymchorseface 1st Apr 17, 9:13 AM
    • 54 Posts
    • 36 Thanks
    horseymchorseface
    be careful your don't get yourself into a vicious cycle of loan after loan. Hit the debtfreewannabee forums to maximise what you have and pay down those debts
    'Generally you get what you pay'
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