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  • FIRST POST
    • megpetch
    • By megpetch 7th Apr 17, 12:04 PM
    • 1Posts
    • 0Thanks
    megpetch
    loan declined
    • #1
    • 7th Apr 17, 12:04 PM
    loan declined 7th Apr 17 at 12:04 PM
    I just been declined for a loan of £10,000, requested to consolidate an over draft & credit card & some left to go towards a new vehicle, no reason for given for the decline, just wondering how long I should leave it before applying for a more credit into future?
Page 1
    • OneLife_OneShot
    • By OneLife_OneShot 7th Apr 17, 12:06 PM
    • 741 Posts
    • 531 Thanks
    OneLife_OneShot
    • #2
    • 7th Apr 17, 12:06 PM
    • #2
    • 7th Apr 17, 12:06 PM
    Probably declined because its adding to your overall debt, there is no guarantee you would pay off the OD & CC in the banks eyes. You could spend the £10k on anything you wanted had they given you it.

    I wouldn't re-apply, I'd address your current debt and try to bring it down.
    CC Debt - Paid £3041 / £3700 - Finishs in Sept 2017
    OD Debt - Paid £1400/£1400 - Finished

    "All truths are easy to understand once they are discovered, the point is to discover them."
    • Candyapple
    • By Candyapple 7th Apr 17, 1:01 PM
    • 2,243 Posts
    • 1,700 Thanks
    Candyapple
    • #3
    • 7th Apr 17, 1:01 PM
    • #3
    • 7th Apr 17, 1:01 PM
    What is your annual salary?

    Are you on the electoral roll?

    How much do you owe on your overdraft(s)?

    How much do you owe on any credit cards?

    Do you have any other outstanding loans / car finance?

    Please list all your credit cards with amount owed and what the credit limit is.

    Do you have any joint accounts with anyone / financial associations?

    Any late payments / defaults / CCJs?

    Are there any negative markers on any of your credit reports?
    Experian: www.moneysavingexpert.com/creditclub
    Call Credit: www.noddle.co.uk
    Equifax: www.clearscore.com
    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
    • bolton_joe
    • By bolton_joe 7th Apr 17, 1:10 PM
    • 21 Posts
    • 10 Thanks
    bolton_joe
    • #4
    • 7th Apr 17, 1:10 PM
    • #4
    • 7th Apr 17, 1:10 PM
    Typically lenders look closely at the number of applications in the last 3 months (searches).
    So there's no point in waiting a short time however if you do 3 or 4, most will begin declining you so you will need to wait it out until a full 3 months passes (better to wait 4 months as the data often lags!)
    • cj1974cr
    • By cj1974cr 16th Apr 17, 12:24 AM
    • 21 Posts
    • 10 Thanks
    cj1974cr
    • #5
    • 16th Apr 17, 12:24 AM
    • #5
    • 16th Apr 17, 12:24 AM
    The lender should tell you why they declined your application e.g Credit Scoring , some good question from CandyApple,

    It may be an affordability issues more than credit history, you can always reviee the decline decision, also look at price comparisons site who can check your credit history before you apply and let you know likelihood of approval
    • bargainbetty
    • By bargainbetty 19th Apr 17, 1:17 PM
    • 3,093 Posts
    • 7,133 Thanks
    bargainbetty
    • #6
    • 19th Apr 17, 1:17 PM
    • #6
    • 19th Apr 17, 1:17 PM
    The lender should tell you why they declined your application e.g Credit Scoring , some good question from CandyApple,

    It may be an affordability issues more than credit history, you can always reviee the decline decision, also look at price comparisons site who can check your credit history before you apply and let you know likelihood of approval
    Originally posted by cj1974cr
    The lender does not have to tell you at all. They do not list their specific criteria for each interest rate band acceptance, nor are they likely to tell you.

    Reduce your existing debt by overpaying as much as you can (especially try to get our of your overdraft for a few months), and reduce the overall amount you wish to borrow. Lenders cannot force you to use the loan to pay off debts, so have to look at your existing debt PLUS the new debt for affordability purposes.

    Best of luck
    Some days, it's just not worth chewing through the leather straps....
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!
    MFW - Joined May 2012, aiming to cut the mortgage by an extra two months every year. (Overpaid £3000 so far)
    , only 11 years to go.

    • Malcnascar
    • By Malcnascar 19th Apr 17, 1:46 PM
    • 1,130 Posts
    • 1,245 Thanks
    Malcnascar
    • #7
    • 19th Apr 17, 1:46 PM
    • #7
    • 19th Apr 17, 1:46 PM
    How long is a piece of string?

    It would be helpful if you asked the potential lender for the reason/s your application was declined. You may not be any clearer after asking.

    As regards your question there is no hard and fast rule as to how long to wait before making an application elsewhere. Each lender has their own lending criteria and, just like dating, you may not be attractive to the lender who has declined you but others may well fancy you "just the way you are".

    Have you checked out this? http://www.moneysavingexpert.com/creditclub
    • DCFC79
    • By DCFC79 19th Apr 17, 2:39 PM
    • 29,741 Posts
    • 18,830 Thanks
    DCFC79
    • #8
    • 19th Apr 17, 2:39 PM
    • #8
    • 19th Apr 17, 2:39 PM
    Sort out the overdraft and credit card debt first, cut your spending on non essentials. Why are you in the overdraft, could it reoccur if you were to get a loan ?

    Maybe you need to post on the debt free wannabe board ?
    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.
    • adindas
    • By adindas 19th Apr 17, 5:15 PM
    • 3,203 Posts
    • 1,532 Thanks
    adindas
    • #9
    • 19th Apr 17, 5:15 PM
    • #9
    • 19th Apr 17, 5:15 PM
    The lender should tell you why they declined your application e.g Credit Scoring , some good question from CandyApple,

    It may be an affordability issues more than credit history, you can always reviee the decline decision, also look at price comparisons site who can check your credit history before you apply and let you know likelihood of approval
    Originally posted by cj1974cr
    What they send you is a generic letter e.g it does not meet their strict lending criterias and ask you to check your credit files with CRAs.

    In many cases you will find this pre-fabricated, computer generated letter is even not worthy to read, useless, empty, irrelevant, as many of applicants will definitely check their credit files before applying for a major credit. Nowadays all of this information is available online for free available at any time you want it. The good series of question from CandyApple is when you wanted to do self assessment for yourself as this is the common sensible reasons for declining an application for a credit.

    This standard generic reply not just for reason for declining credit cards but also for current accounts. Why should they give you more information if they are not required to do so. Keep in mind they are entitled to accept or decline whoever they want and do not need to give you the reason for it.

    They will never give you a more detail information a blatant answer such as too many applications made in short time, too many credits in comparison to your annual income, in relation to current address, you are a suspected cheater, criminal, money launderer etc, etc.

    Giving a true reason for decline will mean more works as it might involve a lengthy argument in correspondence with applicants, riskier, open for potential complains, liability, etc or more seriously, reputational damage or even prosecutions, if they are not careful in drafting the letter.
    Last edited by adindas; 19-04-2017 at 9:37 PM.
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