Loan - credit score

DiscoveryQuest

HI

I am trying to get an unsecure loan for 10k. I have tried, A&L, Co-op, Tesco, Norwich & Peterborough, my personal loans, and have been turned down by all of them. When i get refused the emails are standard, and they say:

Thank you for your recent application for a Personal Loan. Unfortunately, after careful consideration we are unable to open the account you requested.

We have made our decision using a technique known as credit scoring. Our credit score takes into account the information provided by you during your application and information provided by Experian, our Credit Reference Agency, etc.

I have now signed up to both credit agencies, experian and equifax. I have found out that I have an excellant credit rating with both, no outstanding debts nothing. Basically my credit score and reports are the highest you can have. I earn over 28k, with 1 mortgage (£595 per month), 1 x loan (3k & £164 per month) and credit card at (5k £180 per month).

What is going on, why am I being refused. I have never been refused before. I need this loan to pay off the credit card and old loan, because it is cosrting me more, than if I get a 10k over 7 years.

What should I do.

Cheers

jonesMUFCforever

Two things springs to my mind - if my maths are right approximately half your income goes to cover your mortgage, loan and credit card payments (Is the £180 per month minimum payment?) - so lenders are thinking you are fully committed.
The number of credit searches done in a short period of time may make things worse.

I would advise approaching your bank to see if they can offer you a loan - at least a human has the capacity to refer your application to the bank's lending underwriters - something that does not always happen with internet applications.

DiscoveryQuest

Hi

You are right, currently my mortgage, loan and credit card is just under half my monthly income, that is why I am trying to get a loan to reduce my monthly outgoings.

I have apprached my local bank, norwich and peterborough, my application was initially refused, so I went back to the office and spoke to the regional manager. Gave him my most recent credit reports, from both companies. He took it to head office and was still refused. I did not give me a reason why.

Cheers

newrecruit

Hi
Credit scoring is not just about your credit rating. It is also you ability to afford the repayments. So if you have no disposable income after your current comittments and the banks may be refusing you on this basis. If this is the case, it may be worth widening your search for the loan.

As for the credit rating or credit report, it may be various things on your credit file that you may not realise. Look out for GAIN which indicates that you have moved without informing creditor your forwarding address, CIFAS which indicates you have been dishonest with your previous loan application (it is easily done; your mistake can be interpreted as your dishonesty) and Public Record Information which list any CCJ's
Check the your file carefully. There are a number of things that can trip you up.
If in doubt, contact Experian.

rich85_2

What's wrogn with paying 8473% APR like most these loans are!! :O

To the OP, I am in the same boat as you, but without the mortgage!

Credit score 970 odd, no out goings bar a 5k loan, can't even get a credit card?!

I think the banks just tightening their belts?!

newrecruit

You work for Payday loan company?

What you say is not necessarily true. It all depends on the type of loan, secured, unsecured, commercial, short term, long term, bridging, guarantor loans, door step collection loans etc.
Payday loans are limited as to how much you can borrow and often APR is extortionate.

Malky

To the OP;
No one has a right to be given another loan or more credit. The way lenders see it is that you already have 8K of debt and lending you a further 10K would take you up to 18K which is way over half your salary. Loan companies have no guarantee that you're going to use the 10K to pay off the 8K.
Also, taking out a 10K loan over 7 years is probably not going to be any cheaper than paying your current 8K debts. I think you need to look at your finances and see where you can save money every month and throw it at your credit card for starters. Pop over to the debt free board with an SOA and there's plenty people on there who will give you advice on where to cut down your outgoings.