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  • FIRST POST
    • andju6290
    • By andju6290 15th Sep 17, 1:12 PM
    • 12Posts
    • 2Thanks
    andju6290
    Refused loan and have high credit score
    • #1
    • 15th Sep 17, 1:12 PM
    Refused loan and have high credit score 15th Sep 17 at 1:12 PM
    I applied for a loan to M & S as good interest rate advertised via MSE. My credit rating is very good as just checked via this site with all 3 main credit check companies.

    I got an email from M & S saying application unsuccessful and they will write saying why.

    Im concerned as to a)why I was refused, it wasnt a major loan and b) whether their refusal impacts on my credit rating and c) what might be their reasons for refusing a loan if its not on credit score ?

    Be grateful if anyone can advise.
Page 1
    • iolanthe07
    • By iolanthe07 15th Sep 17, 5:01 PM
    • 4,861 Posts
    • 4,595 Thanks
    iolanthe07
    • #2
    • 15th Sep 17, 5:01 PM
    • #2
    • 15th Sep 17, 5:01 PM
    Your credit rating/score is a meaningless number dreamt up by a credit check company that doesn't lend money. M & S won't see your credit score anyway - what they will see, and what they're interested in, is your credit history. Reasons for refusing a loan are many; it could be that M & S have reached their target for loans this month/quarter, it could be that there is some negativity in your borrowing history, it could be that they are unhappy about your income to loan ratio (especially if you're living in an overdraft. Are you?)

    Don't forget that lenders are only obliged to offer the headline low rate to 51% of successful applicants. At least M & S are going to tell you why you were refused, and it may have been for a reason you are able to address. Most lenders don't reveal their reasons for a refusal.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • DCFC79
    • By DCFC79 15th Sep 17, 7:34 PM
    • 29,967 Posts
    • 18,974 Thanks
    DCFC79
    • #3
    • 15th Sep 17, 7:34 PM
    • #3
    • 15th Sep 17, 7:34 PM
    I applied for a loan to M & S as good interest rate advertised via MSE. My credit rating is very good as just checked via this site with all 3 main credit check companies.

    I got an email from M & S saying application unsuccessful and they will write saying why.

    Im concerned as to a)why I was refused, it wasnt a major loan and b) whether their refusal impacts on my credit rating and c) what might be their reasons for refusing a loan if its not on credit score ?

    Be grateful if anyone can advise.
    Originally posted by andju6290
    How much did you ask for ?

    What is your salary ?

    Any debts ?
    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.
    • TadleyBaggie
    • By TadleyBaggie 15th Sep 17, 8:34 PM
    • 2,372 Posts
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    TadleyBaggie
    • #4
    • 15th Sep 17, 8:34 PM
    • #4
    • 15th Sep 17, 8:34 PM
    To answer b), the impact on your (imaginary) credit rating is the same for a refusal or acceptance. Just a credit file search being registered.
    • dlusman
    • By dlusman 16th Sep 17, 8:04 AM
    • 2,161 Posts
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    dlusman
    • #5
    • 16th Sep 17, 8:04 AM
    • #5
    • 16th Sep 17, 8:04 AM
    If they are going to write and tell you why - I dont see any reason at this stage for anyone to try and speculate on points a) & c) ?
    • BoGoF
    • By BoGoF 16th Sep 17, 10:19 AM
    • 2,369 Posts
    • 1,584 Thanks
    BoGoF
    • #6
    • 16th Sep 17, 10:19 AM
    • #6
    • 16th Sep 17, 10:19 AM
    I doubt the letter saying why it was refused will be anything other than the generic answer usually given.
    • pcman1985
    • By pcman1985 16th Sep 17, 10:55 AM
    • 118 Posts
    • 60 Thanks
    pcman1985
    • #7
    • 16th Sep 17, 10:55 AM
    • #7
    • 16th Sep 17, 10:55 AM
    A. You were declined because you didn't meet their criteria for the loan you spied for
    B. One search will have little effect on your credit file. Try to have no more than three searches in a 12 month period.
    C. It could be because your income was not high enough, not a home owner (unlikely to be this one), not enough time at your current home, not on the electoral register, not enough time in your current employment. But more than likely it was something on your credit file. It will be nothing to do with the number given to you by the CRA.
    • andju6290
    • By andju6290 16th Sep 17, 4:41 PM
    • 12 Posts
    • 2 Thanks
    andju6290
    • #8
    • 16th Sep 17, 4:41 PM
    • #8
    • 16th Sep 17, 4:41 PM
    Thanks for replying, I asked for a 7000 loan and earn 50k a year with low mortgage. I've got a new 0%credit card from another company in June with a 9 grand limit , which I don't intend using don't know whether that might affect things. Currently paying credit cards off direct debit every month.
    Just can't see why I would be refused.
    • andju6290
    • By andju6290 16th Sep 17, 4:49 PM
    • 12 Posts
    • 2 Thanks
    andju6290
    • #9
    • 16th Sep 17, 4:49 PM
    • #9
    • 16th Sep 17, 4:49 PM
    Salary 50 k
    Lian applied for 7k

    Small mortgage, no other loans and credit cards paid off each month
    • andju6290
    • By andju6290 16th Sep 17, 4:54 PM
    • 12 Posts
    • 2 Thanks
    andju6290
    Thanks for responding I'm a bit perplexed as I've lived in the same property had the same job earns a good salary for a long time now and never been refused any credit. Only a few months ago I got a credit card with a 9 grand limit so not sure what the reason is will just have to wait for the letter.
    I'm just more concerned whether something has appeared on my credit file that I am unaware of but as I said the credit rating scores are very high. Makes me a little anxious to apply to another bank now.
    • andju6290
    • By andju6290 16th Sep 17, 4:59 PM
    • 12 Posts
    • 2 Thanks
    andju6290
    If I apply to another bank can I just ask for a quote which won't show up on a credit check ?
    • MallyGirl
    • By MallyGirl 16th Sep 17, 5:01 PM
    • 1,902 Posts
    • 6,347 Thanks
    MallyGirl
    You mention that you have credit cards. What is the total limit (not what you have spent, what you could spend) and how does that compare to your income. More than 50% can put off some lenders. It is about affordability.
    Are you on the electoral roll?
    Do you have long history with any of the cards?
    Check your credit history with all 3 CRAs to make sure there is nothing nasty lurking in there.
    Why get a £9k limit cc if you don't intend to use it?
    What did you give as the reason for the loan?
    • MallyGirl
    • By MallyGirl 16th Sep 17, 5:02 PM
    • 1,902 Posts
    • 6,347 Thanks
    MallyGirl
    If I apply to another bank can I just ask for a quote which won't show up on a credit check ?
    Originally posted by andju6290
    If they do a soft search that won't be visible. Have you tried the eligibility checker on here?
    • BoGoF
    • By BoGoF 16th Sep 17, 5:03 PM
    • 2,369 Posts
    • 1,584 Thanks
    BoGoF
    You have £9k you could spend on top of any loan you are asking for. Why did you apply for the credit card if you dont intend using it?
    • andju6290
    • By andju6290 16th Sep 17, 8:32 PM
    • 12 Posts
    • 2 Thanks
    andju6290
    I've a feeling I'm going to learn something from this !
    My total credit cards adds up to 17000, That includes 2 cards I never use. I suspect I should scrap those accounts and ask for a lesserr limit on the one with 9000 should I ?

    I did credit check with the three main ones and scored highly can't see anything on there. And I am on the electoral register.
    • andju6290
    • By andju6290 16th Sep 17, 8:47 PM
    • 12 Posts
    • 2 Thanks
    andju6290
    Yes I did and the eligibility checker on MSE was positive
    • zx81
    • By zx81 16th Sep 17, 10:25 PM
    • 13,184 Posts
    • 13,493 Thanks
    zx81
    You really need to stop looking at your scores. You may as well read the tea leaves.

    Your limits are low, so that is unlikely to be the issue, although it may be he recency of your card.

    Have you checked the actual data on your three files (NOT the scores)?
    • enthusiasticsaver
    • By enthusiasticsaver 16th Sep 17, 10:33 PM
    • 4,251 Posts
    • 7,682 Thanks
    enthusiasticsaver
    Why do you need a loan (which will not be interest free) of £7k when you have a 0% credit card with a £9k limit? Why not use that?

    There could be all sorts of reasons why you were refused a loan but if you have numerous credit cards then affordability could be an issue. Is the £17k the total limits including the £9k clear one or do you have a balance of £17k on credit cards?
    Countdown to early retirement on 21.12.17 3 months to go.
    • iolanthe07
    • By iolanthe07 17th Sep 17, 10:51 AM
    • 4,861 Posts
    • 4,595 Thanks
    iolanthe07
    M & S may simply have reached their loan target for the month or quarter or whatever period they use. It could be nothing to do with the applicant.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • andju6290
    • By andju6290 17th Sep 17, 1:26 PM
    • 12 Posts
    • 2 Thanks
    andju6290
    I wanted to take the loan given the advertised very low interest rates but as I'm discovering they are not likely to be as low as advertised. I may just leave it for now, cancel the credit cards I'm not using and use my 0% interest card for now .

    What I am keen to do is to make credit work for me better so may do a bit more homework on this site!
    Thanks for your replies everyone
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