Can't get a loan - yet my credit score is excellent??

Hotlips_3

Dear Moneysavers
I seem to be having problems getting approval for a small loan (£4,000) from most of the high street lenders - but my credit rating with Experian and Equfax is excellent. Is this ALL due to the credit crunch? Or can someone elighten me as to why I am being referred to less 'reputable' loan companies?

nomoneytoday

Credit scores mean nothing as each institution has their own secret scorecard.

These are deliberately secret to avoid people manipulating them and include stuff like electoral role status, moves, house ownership, other debt, previous repayment history, ccjs etc etc, as well as how much the lender whichs to lend in total

Rafter

Hotlips,

Although your rating may be excellent, it may be that they are more concerned about the amount you are borrowing versus your income.

It seems that many banks have made such big losses on personal loans they are only lending to customers with plenty of income, perfect payment histories, their own home etc. Ironically it is these people who are the least likely to actually need to borrow!

How much is your existing borrowing? How much do you earn? Do you have a number of old cards that are giving you access to a lot of 'available credit'?

R.

demotw

all true, except an important one, and possibly unknown reason missed. The company you work for also affects your scorecard. ie. Lets say you worked for woolworths before it went into administration, if the bank knew woolies was in difficulty (know this from the business credit rating etc..) then they would decline you for a loan as your income was at risk. Seen this happen on more then one occasion more so now then ever. You may not even know the company you work for is in trouble. Also, the bank would never tell you this is the reason, just you havent made the scorecard.