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  • FIRST POST
    • littlebitconfused
    • By littlebitconfused 15th May 17, 7:41 PM
    • 8Posts
    • 2Thanks
    littlebitconfused
    Good score but turned down- what now?
    • #1
    • 15th May 17, 7:41 PM
    Good score but turned down- what now? 15th May 17 at 7:41 PM
    Apologies for the new account but I cant access my old one!

    Im applying for a loan to consolidate my credit card debt and came onto the site this morning to check out some deals. Noticed the free experian credit scoring service and thought "what the hell" so signed up and found i've got a score of 905. Great news!

    Went through the links to tesco loans (which ive just paid off a 25k 4 year loan with), filled in all the info and pressed submit- then nothing but the 'dont press refresh' screen. Left it for at least 10 minutes but nothing so eventually closed the browser tab.

    Though oh crap what do i do now? Best not 'reapply' to tesco so went to clydesdale, the next on the list but got turned down with no specific reason.

    Feeling a wee bit anxious now so I phoned Tesco Loans where I spoke to someone who seemed to think that her career advancement was entirely based on being as snotty as possible. I think at one point she could have said "computer says no".

    Back on the MSE Credit club- credit score still 905.

    Where do I go from here? Have I stuffed my score by the failed application? How long should I wait till I reapply? Is it worth the appeals process at tesco which the snotty lady sneered at me to try?
    Last edited by littlebitconfused; 15-05-2017 at 7:44 PM. Reason: mistake
Page 2
    • zx81
    • By zx81 16th May 17, 11:06 AM
    • 12,678 Posts
    • 12,936 Thanks
    zx81
    Are you the OP?
    • DCFC79
    • By DCFC79 16th May 17, 11:11 AM
    • 29,729 Posts
    • 18,825 Thanks
    DCFC79
    Are you the OP?
    Originally posted by zx81
    Im going to say yes.
    Je Suis Charlie
    • laughingboyuk
    • By laughingboyuk 16th May 17, 11:11 AM
    • 6 Posts
    • 2 Thanks
    laughingboyuk
    It wasn't sarcasm. It was a statement of fact.
    Originally posted by PeacefulWaters
    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.
    Originally posted by PeacefulWaters
    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.
    Originally posted by PeacefulWaters
    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.
    Originally posted by PeacefulWaters
    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
    • By DCFC79 16th May 17, 11:12 AM
    • 29,729 Posts
    • 18,825 Thanks
    DCFC79
    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.
    Originally posted by laughingboyuk
    You wont find out why you were turned down.
    Je Suis Charlie
    • laughingboyuk
    • By laughingboyuk 16th May 17, 11:15 AM
    • 6 Posts
    • 2 Thanks
    laughingboyuk
    Im going to say yes.
    Originally posted by DCFC79
    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
    • By DCFC79 16th May 17, 11:21 AM
    • 29,729 Posts
    • 18,825 Thanks
    DCFC79
    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.
    Originally posted by laughingboyuk
    Use the forgot password option.
    Je Suis Charlie
    • Candyapple
    • By Candyapple 16th May 17, 11:29 AM
    • 2,240 Posts
    • 1,700 Thanks
    Candyapple
    OP have you checked what is showing on your other 2 files?

    The free versions to check your credit files are below:
    Experian: www.moneysavingexpert.com/creditclub
    Call Credit: www.noddle.co.uk
    Equifax: 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
    • By pjcox2005 16th May 17, 12:31 PM
    • 441 Posts
    • 439 Thanks
    pjcox2005
    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!
    Originally posted by laughingboyuk


    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
    • By PeacefulWaters 16th May 17, 12:33 PM
    • 6,690 Posts
    • 8,221 Thanks
    PeacefulWaters
    If its a fact its one I wasn't aware of. Can you point me to the evidence please?
    Originally posted by laughingboyuk
    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
    • By Pixie5740 16th May 17, 1:02 PM
    • 10,765 Posts
    • 14,866 Thanks
    Pixie5740
    If its a fact its one I wasn't aware of. Can you point me to the evidence please?


    Originally posted by laughingboyuk
    Is the search button broken on the forum? (For the avoidance of doubt that was a bit sarky )

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

    http://www.moneysavingexpert.com/loans/what-credit-scores-mean
    Last edited by Pixie5740; 16-05-2017 at 1:06 PM.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Puddylove
    • By Puddylove 16th May 17, 1:53 PM
    • 403 Posts
    • 650 Thanks
    Puddylove
    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.
    Originally posted by littlebitconfused
    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.
    • bertiewhite
    • By bertiewhite 16th May 17, 2:02 PM
    • 480 Posts
    • 434 Thanks
    bertiewhite
    How much do you earn? As a 25k loan is very high so you will need to be earning at least 60k plus to be accepted.
    Originally posted by sjbrun
    I had a 22K loan on a 40K income with Tesco.
    • Pixie5740
    • By Pixie5740 17th May 17, 7:55 AM
    • 10,765 Posts
    • 14,866 Thanks
    Pixie5740
    I had a 22K loan on a 40K income with Tesco.
    Originally posted by bertiewhite
    Did you already owe £22k on credit cards and other loans when you applied for the Tesco loan?
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • bertiewhite
    • By bertiewhite 17th May 17, 8:15 AM
    • 480 Posts
    • 434 Thanks
    bertiewhite
    Did you already owe £22k on credit cards and other loans when you applied for the Tesco loan?
    Originally posted by Pixie5740
    Yes - it was a consolidation loan
    • littlebitconfused
    • By littlebitconfused 17th May 17, 8:38 PM
    • 8 Posts
    • 2 Thanks
    littlebitconfused
    OP have you checked what is showing on your other 2 files?


    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?
    Originally posted by Candyapple
    Thank you for replying.

    The credit report part of the MSE Credit Club gives you a full, free Experian report including everything you've listed above (salary, home, credit cards, CCJs etc)- all are reported as good.

    I tried to post a screenshot of the summary (anonymised of course) but cant as a newbie, but the 44 page printout gives details of every aspect of my financial life- credit card debts, loans, mortgage, overdraft- all detailed with balances on a month by month basis! Its really quite scary how much info is available. They really do know everything about me financially.

    I appreciate that this isnt the be all an end all of getting a loan but I wanted to use it as a general indicator of my chances and to identify any potential factors I could improve.

    The just completed 'old loan' now shows as zero balance but I wonder if thats the major hurdle in which case ill wait a couple of months then try again. Im slightly worried as I made two failed applications in the confused period (as the tesco one crashed basically) which are recorded on the report but i cant do anything about that now I guess.

    The other factor I'm considering is that is appears to list only one bank account which has one part of my income paid into it. I have a business account with a different bank from which I take income mainly into a joint account with my wife. Perhaps that may have something to do with it?

    Several people have mentioned snowballing but ive tried a few calculators and none of them compare to the speed and relative low cost of the loan.
    Last edited by littlebitconfused; 17-05-2017 at 8:59 PM. Reason: mistake
    • Pixie5740
    • By Pixie5740 18th May 17, 9:37 AM
    • 10,765 Posts
    • 14,866 Thanks
    Pixie5740
    Yes but not all lenders use Experian for credit referencing and reporting. Some lenders use Equifax and Call Credit instead. That's why you should check all 3 files because they won't be identical.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
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