I do not understand. Please someone help.

mrjam

Im in the market for a new car, and i thought it would be a good idea to get a rate of around 7.9% on an unsecured loan rather than 13% on finance!!.

I checked my credit report through creditexpert which confirmed my thoughts, 6 credit accounts, not 1 missed payment over the past 4 years, 2 searches in 12 months (unrecorded enquiries), no linked names, no ccj, nothing. I then paid £5.95 for my credit score which came back as 999/1000, it went on to say how i am a low risk client, in the excellent category, and a good prospect.

Feeling comfortable, i went to Sainsburys bank and applied online for £7,500. I have an income of £1590 with outgoings around £400 per month. Low and behold, i was declined. I then approached my own bank Halifax, and applied, i was told to phone for a decision, it had been passed to their underwriters and the lady eventually came back and said declined, i said to her, i dont mean to be rude but i just checked my credit report and i have a score of 999/1000, ive never had any problems with my bank, etc etc, she said "we dont give reasons for being declined im afraid" i said so is it based on my credit score or other criteria, she said "im not at liberty to say".....

I do NOT get it at all, how the hell can i not get a loan? Now there are 2 personal loan searches on my report today, which i presume will knock it down from 999, even so.... does it matter when i couldnt even get the loan with a 999 credit score?

So confused.:mad:

StuTheDon

Hi,

You mention 6 credit accounts - what are the amounts of debt on them? It may be you are being declined because they dont believe your salary can cover the payments on all 6 accounts plus a loan.

Also, they may believe you have too much available credit - if you have 6 credit cards for example all with a 0 balance try closing some of them.

Some basic questions:

What is your annual salary?
How much debt do you currently have in total?
Are you on the electoral register at your current address?
Have you moved home in the last 3 years?
Are you a home owner?

mrjam

StuTheDon wrote: »

Hi,

You mention 6 credit accounts - what are the amounts of debt on them? It may be you are being declined because they dont believe your salary can cover the payments on all 6 accounts plus a loan.

Also, they may believe you have too much available credit - if you have 6 credit cards for example all with a 0 balance try closing some of them.

Some basic questions:

What is your annual salary?
How much debt do you currently have in total?
Are you on the electoral register at your current address?
Have you moved home in the last 3 years?
Are you a home owner?

Thanks for replying. Ok, 6 accounts, 2 are loans which show as "settled" from a few years ago, 1 is my mobile phone bill, 1 is my bt bill, and 1 is car insurance, the final one is my bank credit card. The balance of which is £167 with a £800 credit limit. Mobile phone bill, £0. Bt Bill, £0.

I am on the electoral register yes, my current debt stands at £167, and my car insurance payments of £55 per month, i have lived at my current address for 22 years and 4 months, i am not a homeowner.

I just do not understand it at all, and its getting me down.

peachyprice

How old are you, if you don't mind me asking?

mrjam

peachyprice wrote: »

How old are you, if you don't mind me asking?

Not at all, im 24.

iolanthe07

It's nothing personal. Banks don't have to lend if they don't want to and no one has a right to a loan, it is just that lending is being cut back savagely at the moment. Try again in six months when things may be a little easier.

inmypocketnottheirs

Hi. The credit score you mention 999/1000 is totally meaningless. Each lender appraises their applications differently. The £5.99 you have paid is nothing more than a scam by the credit reference agency to con you out of more money for something that is totally useless.

The thing is at the moment lenders are very fussy about who they lend to.

Sorry you wasted your money!

clarence83_2

The only credit which will really count towards your scoring for a loan will be your credit card (car insurance etc won't affect it). As you only have an £800 limit (and you are using nearly 25% of your available credit on it) they will presume you cannot afford to take out a loan for such a lot of money, and that you are too high risk.

For the time being, stick with the car you have got (or buy a cheap one) and save to get a nicer one if that's what you would like. If you only have £400 of outgoings a month then you could save very quickly. With no interest charges at all! (in fact, if you put it in a savings account with a good rate you could end up with more than you started with!)

claire0788

Hey I would agree with the previous post. With a good salary like yours and around £1000 after your monthly outgoings id say just save up and then just pay for the car outright, means you wont pay interest for something you can buy yourself if you wait a wee bit

danielanthony

Sainsburys use Halifax for their credit cards so perhaps they are linked for loans too? When i phoned to apply for a Sainsburys CC I was put through to a Halifax call centre...

Anyhow, try using the Experian loan facility where they show you what loans you would qualify for without affecting your credit score. There are links to this facility when you log into the Creditexpert site.