What does referred mean when trying to get a loan?

peter5710

I am in the process of getting a fairly large loan.
I have a good credit score of 463 which is above average yet the loan has been referred. What does referred mean? Referred to who?
Thanks!

Burlesque_Babe

I would guess referred to the company underwriter for a decision. You are probably borderline accept/reject and they want to do a more thorough look at the situation.

Credit scores don't mean anything - all companies have different criteria as to whether you are accepted or not.

stephane_2

you are being referred to underwriters who will do further checks before they decide or not to give you money and yes credit score is worthless....

_Andy_

peter5710 wrote: »

I am in the process of getting a fairly large loan.
I have a good credit score of 463 which is above average yet the loan has been referred. What does referred mean? Referred to who?
Thanks!

Hi peter - it basically means they're not able / willing to give a decision straight away. As others have mentioned, this will go to an underwriter who will look at the case and decide if they're happy to lend - they will then give you an answer.

peter5710

Ahh, ok thanks, so I may still have a good chance then!

CLAPTON

how large is 'fairly large ' loan?
how large is your salary?
how large are your other debts?

peter5710

Loan is a car loan for £60k 10% down the remainder over 5 years. Payments of approx £1100 Per month.

I bring in about £6k net per month, after outgoings left with about £3k of disposable income per month.

thriftymomma

Crikey that is a big loan for a car! Best of luck.

CLAPTON

they are probably concerned about affordability

to borrow over 80% of you annual take home pay is a very high ration. Many would say very unwise; especially to buy a car.

inmypocketnottheirs

Often when an application gets referred the underwriters may ask for evidence of affordability. They may ask for wage slips if employed, accounts if self employed. More than likely they will want to see bank statements to check funds through the account match what is being claimed as income and to see if there are any charges for returned cheques, unpaid items or exceeding overdraft limits.

Let us know how you get on and who the lender is.