Immediately turned down for a loan...but will a credit search show?

The_Boss

Being brief, my credit rating with Equifax is good. I applied for a loan today with Sainsburys Bank who only use them. But as soon as I hit submit, it came back within 20 seconds that my loan had been rejected.

Afterwards, I saw something in their smallprint that said they dont recommend applying for 75% or more of your salary. I earn about £17k and applied for £16k (yes schoolboy error). So if it was instantly rejected on that basis, do you think it means they didnt refer it to Equifax?

socmwils23

It sounds like you may have been credit scored rather than credit rated. It is a baffling system as my other half was recently turned down by direct line for a loan of just over 3k. This was despite her having a loan with them which is due to end in 2 months which was considerably more than what she wanted this time. She had never missed a payment and could easily afford the new payments. The person she spoke too said it was more than likely due to the fact she had just moved jobs and banks. It sounds like you have fallen victim to the same thing.

The_Boss

Hmm. I have had the same job for 5 years and with no bills to pay (living with parents). I'm almost certain its down to asking for too much having seen their smallprint. Especially as the answer came in about 20 seconds.

If I have been 'scored' as opposed to 'rated' does that mean the search will show up? I want to buy a car and think I'll have to go the PCP route now, but wont apply straight away if its going to show up.

:xmassign:

socmwils23

Have you thought about getting a used car? I just bought a 7 month old mazda 6 for 9500. Price new was 15950. Personally i would never buy a new car just for the drop in value when you drive it away.

Out of interest what car are you looking at?

The_Boss

I have, but I have an 18 month old Peugeot 307 and want to upgrade to a Renault Megane convertible. I can get brand new and not preregistered from an internet broker for £4k less than the list price (dealers only would give £1k off), so that deals with a lot of depreciation.

socmwils23

I think the key question you have to ask yourself before doing a PCP deal is at the end of the payments are you more likely to change car or to pay off what is owed by re-financing? If its changing the car PCP is not a bad way to go provided you get a decent apr. If you will keep it then id look to buy it outright maybe over an extra year.

As far as the credit checks go i cant really help as i dont know that much about how they work. Im sure someone will come along and explain soon enough though.

Good luck in getting your car!!

tattooed_lady

Hi Boss,

I think your best bet would be to get a copy of your credit report from Equifax. Get the £2 or if you can't wait, go to their website and you can see if for about £9??

The_Boss

I've just checked my Experian report and its showing up there. Great. Dont you love it when people give you crap advice?

I'm fuming now. They clearly said they use Equifax. There is no trace of it on my Equifax record. Now I've further ruined my poor Experian record all because they fed me some bull!!!! that they use Equifax. So while my Equifax score stands at almost excellent, the Experian one is now on the brink of 'very poor'. Thanks guys.

The_Boss

Does anyone know an Equifax only company I could get a loan from? The ones on the table on this site all seem to be wrong. Or if I apply to a company that uses both, will they off set the 'poor' on one with the 'good' on the other? Especially since in 5 years of having many accounts I have never missed a payment?

Treaks

Try Barclay's,

I applied for a credit card with them and they checked my Equifax.

Good Luck

Catch_A_Fire

The_Boss wrote:

Does anyone know an Equifax only company I could get a loan from? The ones on the table on this site all seem to be wrong. Or if I apply to a company that uses both, will they off set the 'poor' on one with the 'good' on the other? Especially since in 5 years of having many accounts I have never missed a payment?

I'd be surprised to find any mainstream lenders who use 'poor', 'good' etc ratings or scores (/1000 or /500 etc) from CRAs to assess applicants. I would expect them to analyse the data (ie. all the information showing on your credit file with whichever CRA they search) to create their own image of you as a potential customer and compare that with their criteria.

I suggest you try (again) to get a loan from a lender that only uses Equifax but be aware that you will be assessed on current and previous payment performance as well as current debt and available funds (space on credit cards etc) as well as the number of searches on your file......and probably more!

HTH