Just been refused loan having an excellent credit score

davied

I have just found out that i have been declined a northern rock loan. I am really confused about this because i have seen all my credit files from equifax and experian and my call credit. And have an excellent score, above 90 percent, I have not made any searches in the past 6 months and have 3 or more credit ties to my name which i have not defaulted on once over the past year and a half, I wanted to borrow 25000 over 10 years to consolodate and for a wedding. Maybe this was to much to ask for?

It is the maximum you can borrow and for the longest period as well. Maybee this was a mistake.

Any thought out there as to WHY i have been declined. Have planned this loan for months Thought i knew the system - obviously not.
Oh well what to do what to do

Thanks for any thoughts

merch

Maybe they think you're too much of a risk - how much is your current debt? How much is the £25k loan compared to your income? Did you refuse their PPI?

aimingforadebtfreelife

did you apply for the loan at the end or the start of the month? from working in a bank the "accepted credit score" moves daily based on the projected loan amount they can lend that month. If the accepted loans are reaching this target too quick they will tighten their accepted credit score - thats why its always best to apply for a loan at the start of the month rather than at the end.

davied

Yes i did refuse their ppi and i Applied on the 7th of the month mistake????????? I dont know i phoned the company they say they take loads of things into account other than scores etc. Thats their criteria i didnt pass on. Do you think it would be wise to try another company now? Maybe their criteria different

jools_2

I applied to Northern Rock for £25,000 over 5 years without their PPI. I also want to consolidate.

I was offered the loan but only at 6.9% - their rate was advertised at £5.8%. When I asked why they said that they couldn't tell me what their criteria was.

I've just been offered the same loan with Direct Line at 5.6%. I told them that I had been offered a loan with Northern Rock but wanted to see if they could better the rate offered. I obviously didn't tell Direct Line what rate NR had offered me!

maforduk

I just applied for a £10,000 loand with A&L, the rate I got was 11.5% at first, haggled to 8.1%. The original rate I went for was 6.5%.
I have a poor credit report but I have anotice of correction on my file explaining why.

I also accepted their PPI but am looking to cancel it before signing the papers as I can get it cheaper with an independant company....only £4.55 per month!!!!!

Rafter

davied,

Although many loan offers claim to be up to £25k and up to 10 years, most providers would decline that type of loan over that period of time, particularly at their advertised apr.

The loan is too high risk at that duration for them to underwrite. They have no security (from a house for example) and a lot could happen to your circumstances in that length of time.

Are you sure you still want to be paying off your wedding in 2016 too?

Suggest you try for a shorter period (below 7 years) and maybe split your borrowing between a couple of institutions.

Good luck.

R.

M_Thomson

davied wrote:

I have just found out that i have been declined a northern rock loan. I am really confused about this because i have seen all my credit files from equifax and experian and my call credit. And have an excellent score, above 90 percent, I have not made any searches in the past 6 months and have 3 or more credit ties to my name which i have not defaulted on once over the past year and a half, I wanted to borrow 25000 over 10 years to consolodate and for a wedding. Maybe this was to much to ask for?

It is the maximum you can borrow and for the longest period as well. Maybee this was a mistake.

Any thought out there as to WHY i have been declined. Have planned this loan for months Thought i knew the system - obviously not.
Oh well what to do what to do

Thanks for any thoughts

You don't know that you have a good credit score with Northern Rock, you may have a good credit rating but your score will vary from bank to bank. Like another poster says your scrore with a bank can vary from day to day according to the type of customer they are looking for. The scores you can get on Experian or Equifax are generic scores which are totally different from what the banks use. Nobody apart from certain people high up in banks know how the scores are calculated, this is because if everyone knew the banks would leave themselves open to lots more application fraud.

funschine

I'm not an expert but perhaps you simply are not thier target market. As far as I am aware, northern Rock take on people that other banks often refuse. Make sure that you are registered to vote. They will also consider your income, how long you have lived in your address, and any current access to credit you have.