Excellent Credit Rating but declined CC and Loan

rich85_2

I have a score of 969, never missed one payment, etc near perfect credit rating.

I have about 4k left on bike finance and £220 left on finance from my girlfriends 21st bday presnt.

My only other out going is my phone bill, £35 a month.

I have no other out goings at all bar £20 a week on fuel for work (still at home, no rent)

I earn 24K plus 2 bonuses a year and around £3k a year in OT

I applied for a credit card in August and got rejected. Foolishly I instantly applied for another one and same thing.

I applied for a 10k loan last week (8.8%) and got rejected too.

I am with barclays and they said they will offer me a loan at 29%?!!!!!

I have no idea why! Mean while I know people wth a TON of debt and they can get approved just fine!

The only thing I can think is I have only had a (current) bank account 2 years, will this make an impact? I' mnot not sure what else it could be>?

creditsurfer

Hi, I only have limited advice but i will give you my take on your situation.

Dont forget you are asking for £10k on top of what you still owe on your other financial commitments,

Secondly, Your searches are far too close together, u need to think about applying before you apply, time applications correctly, there is a whole load on this on the main site.

Thirdly, You have only been with your bank for 2 years, and although they base a lot of their decision on your credit score they also look at your account history and how you behave. REMEMBER! banks are there to make money, whilst they certainly want their money back they also want a handsome profit for providing the credit.
you may not be their type of customer if you are such a good payer because average joe has 3 credit cards and a loan and they are all commanding most of his income and that is what makes them money. So either way you look at it some will say yes and others will say no.

I suggest for now you stop applying. wait until you have paid your bike finance and then have another chat with your bank. Hope this helps. Good luck

rich85_2

creditsurfer wrote: »

Hi, I only have limited advice but i will give you my take on your situation.

Dont forget you are asking for £10k on top of what you still owe on your other financial commitments,

Secondly, Your searches are far too close together, u need to think about applying before you apply, time applications correctly, there is a whole load on this on the main site.

Thirdly, You have only been with your bank for 2 years, and although they base a lot of their decision on your credit score they also look at your account history and how you behave. REMEMBER! banks are there to make money, whilst they certainly want their money back they also want a handsome profit for providing the credit.
you may not be their type of customer if you are such a good payer because average joe has 3 credit cards and a loan and they are all commanding most of his income and that is what makes them money. So either way you look at it some will say yes and others will say no.

I suggest for now you stop applying. wait until you have paid your bike finance and then have another chat with your bank. Hope this helps. Good luck

Hi, thanks for the reply

I realsie I am adding to my other financial commients, but I thought they were quite low, and be no problem.

I know my searches are close together and I won't apply for another 6 months. Annoying though as I don't see why I was rejected in the first place.

I am going to call up Sainsburys and ask why.

~I agree with the third point, I have only been over drawn (just) twice in 2 years!

This is what I get for being careful... lol

EDIT - the bike has another 2 years, I could pay it off but I am saving up for a deposit on a house so want to keep my savigns as high as possible. I didnt think 4k loan would effect it so much

MrsTinks

OK... whilst you have debts then chances are you'd be better off paying off your debts with your savings than saving - when you take out a mortgage then your debts will be considered too in your mortgage application and the likelyhood of you getting more interest on the savings than you pay in interest on the debts is very low

The reason you have been rejected? There may be many But you have 1 main debt right now - How long have you had that debt?
Before coughing up a £10k loan lenders want to see that you can handle debt responcibly - if you only have 1 debt and only for a relatively short time then you'd be better off getting a high APR card and spending a small amount and paying it off before you get hit with fees every month This will help show you can manage credit.
Are you registered on the electorate roll? A lot of lenders won't even consider you if you're not on it...
Sainsbury's btw don't have to tell you why they declined you.

Chances are that it's not the £4k loan that was the reason - but that you simply don't have enough of a financial history for lenders to feel you are a good option for a large amount of credit...
I had the same problem when younger - before I had debts lol - I couldn't get 0% finance on a computer I had the cash for because I had never had any debt! Ironic or what? SO my now ex took the finance in his name and I transfered the cash to his account was a matter of principle at that point - I was not paying them at once and we were getting the small interest on the money till it was paid off...

CLAPTON

why does some-one with a good income but very little outgoings and saving for a deposit on a house want to borrow 10k?
or indeed need to borrow to buy his gf a present?

naijapower

CLAPTON wrote: »

why does some-one with a good income but very little outgoings and saving for a deposit on a house want to borrow 10k?
or indeed need to borrow to buy his gf a present?

I agree with your point. I am at a loss as to OP objective.
Maybe he can shed more light

rich85_2

MrsTine wrote: »

OK... whilst you have debts then chances are you'd be better off paying off your debts with your savings than saving - when you take out a mortgage then your debts will be considered too in your mortgage application and the likelyhood of you getting more interest on the savings than you pay in interest on the debts is very low

The reason you have been rejected? There may be many But you have 1 main debt right now - How long have you had that debt?
Before coughing up a £10k loan lenders want to see that you can handle debt responcibly - if you only have 1 debt and only for a relatively short time then you'd be better off getting a high APR card and spending a small amount and paying it off before you get hit with fees every month This will help show you can manage credit.
Are you registered on the electorate roll? A lot of lenders won't even consider you if you're not on it...
Sainsbury's btw don't have to tell you why they declined you.

Chances are that it's not the £4k loan that was the reason - but that you simply don't have enough of a financial history for lenders to feel you are a good option for a large amount of credit...
I had the same problem when younger - before I had debts lol - I couldn't get 0% finance on a computer I had the cash for because I had never had any debt! Ironic or what? SO my now ex took the finance in his name and I transfered the cash to his account was a matter of principle at that point - I was not paying them at once and we were getting the small interest on the money till it was paid off...

Hi, with your first point I can see what you mean. But personally I would rather have the money in my bank as savings for an emergency incase somethign came up, or I lost my job.

I still have 2 and a half years left on the bike, and only had it 6 months. So what you're saying does make sense.

I guess in the eyes of a lender I am quite new I'm 23 now but:

• Bank account <2 years
• Contract phone <9 months
• Bike loan <6 months

Which points out I have never completed a financial agreement.

Before this I had a savings account, and my phone and car(s) finance was all through my parents.

I will apply for a high APR credit card and just put my petrol on it a month Thanks for the idea.

I am on the electorate roll

So, I guess it is because of my small amount of history

CLAPTON wrote: »

why does some-one with a good income but very little outgoings and saving for a deposit on a house want to borrow 10k?
or indeed need to borrow to buy his gf a present?

Ok, sorry I should have explained this.

I want to borrow 10k as I have a car on finance and this is what is left on the agreement. I had to get my parent's to take it out for me as at the time I didn't have a current account.

So, I want the 10k to clear the finance, and sell the car. Then pay off the loan and with what cash is left buy a car, which will reduce my out-goings as I will no longer have to give my parents the cash for the car I had on finance.

And I got my GF's present on finance as while in the store it was 0% interest (if anything this should look good on my report once paid off?)

naijapower wrote: »

I agree with your point. I am at a loss as to OP objective.
Maybe he can shed more light

I hope I cleared it up.

Welshdresser

I've just been turned down for a personal loan by my bank who i've been with for 20 years. My credit score is 999 'excellent' according to experian and i've never been refused any credit in the past. I was even told a few months ago that we were pre-approved for a loan as our history with the bank is so good, the loan was for debt consolidation, just to tidy up our finances as I have done many times in the past. This is the first time i've applied for a loan since the credit crunch hit and I think it is just 'sign of the times' right now. I some way, the banks are being more responsible now and looking more closely at customers financial commitments before blindly lending more money as they have done in the past. Its inconvenient, but i'll just have to pay my debts in the conventional way - rather than putting them into a loan with a fixed interest rate and a fixed end date. I think we all need to get used to this as it probably won't change for some time to come.

If i'm wrong - please correct me.

Apples2

Welshdresser wrote: »

I've just been turned down for a personal loan by my bank who i've been with for 20 years. My credit score is 999 'excellent' according to experian and i've never been refused any credit in the past. I was even told a few months ago that we were pre-approved for a loan as our history with the bank is so good,

I'm impressed you have a 999 score. Aren't you fighting First Plus Sub Prime lenders??
I didn't think people who could acquire a proper bank loan would ever consider First Plus in the first place.

Also a lot of your ppi reclaims don't seem to have had any kind of affect with your score so high (maybe they have their own records Experian don't see)

ugandandollars

I have just had an application for a Halifax "All in One" credit card declined. My Experian credit score is 999 and I have no outstanding debts. I recently cancelled my longterm CC due to the excessive 22% APR they were charging on purchases.

When I asked the CSR at Halifax why my application was declined he put me on hold and spoke to "the underwriters" who advised I had failed their credit scoring criteria. I asked which particular criteria I had failed on, but the CSR said he couldn't tell me and that I must post a letter to them requesting further information.

I have been with the same bank for over 10 years. I have been employed fulltime for over 5 years at the same company and have a salary over 50K, 1-2 year tenancy histories, and I am on the electoral roll.

I am at a complete loss as to why I was declined. One thing for sure, there appears to be a massive discrepancy between the bank's scoring system and Experian's. I just don't know which part!

Any advice on this would be gratefully received.

Fiddlestick

ugandandollars wrote: »

Any advice on this would be gratefully received.

My advice is to start a new thread, rather than posting on one that has been dormant for the last 9 months.