Want to appeal against unsecured loan rejection

zedox

I recently checked my credit score, it's was 962, so in the excellent bracket.
I have 1 credit card at 1700 and an overdraft on my current account at 1250

Both currently at their limits. I've recently been promoted at work, so in a very secure job, been there 3 years.
My salary is now 20k.

The amount of the loan I applied for was 6k, 3 to cover my credit card and overdraft, and the rest for a new car.

What is the best way to appeal?

enjoyincubus

Zedox,

everyone has the write to appeal a decision for credit if an automated system has been used to make the decision (e.g. credit scoring).

To do this you just need to put down in writing that you wish to appeal and send it to the address on the letter which notifies you that you have been declined.

jonesMUFCforever

zedox - your credit score is like a chocolate teapot -ie useless.

What matters is the credit score given to you by the lender.

You state yourself that both your account and credit card are at their limits and that you want to increase your debt still further by buying a new car.

It could be me here but the lender may have decided that you are already over committed.

standupguy

You can ask a lender to take another look at your application but there is no automatic right of appeal against an underwriting decision.

It is the lenders decision who they will lend money to.

What was the reason given for the loan on the application?
Were they aware you would be settling one credit card debt and using the balance to purchase a car?

If so, they would have seen that you were reducing an existing liability rather than adding 6k to what other credit you have at the moment?

zedox

The reason I gave was to clear other debts.
I understand it's their decision, I can't force them to lend money!
Was just after some insight on best ways to word an appeal letter to their decision!

Rafter

zedox,

It may just be that in the current climate they aren't lending to people who earn less than £25k or they will only lend 25% of you salary so you just tipped over the top for that particular lender.

As others have said, your credit score is irrelevant in that case if the lender has just decided the loan isn't affordable enough for you.

The best thing is to go to your own bank. Preferably apply via their online loans which offer better value than the branches.

You can also do a 'smart' search on a system like moneysupermarket.com which has details of lenders criteria, so you won't waste your time applying to those who won't accept you.

Personally £6k does seem affordable for you - particularly as you are using a lot of the money to buy a car.

Just please try to avoid running up your overdraft or credit card once you have paid them off! Otherwise you will find yourself in £10k of debt and then your options really will be more limited.

R.

standupguy

Ok then it may be better to clarify the reason for the personal loan in that you will clear the credit card debt completely ( or you could give them the opportunity to settle the credit card direct ) but that around 4k is for the purchase of a car.

This looks better on the application rather than just a consolidation of debts.

If still no joy you should still qualify for HP on the car from a supplying dealers finance company