Credit refused, even though I have perfect credit rating?

Alias_Omega

Just to make you feel happier,

I'm Pre-Approved with Natwest for a loan of £20k, so thats 20mins and it will be in my account.

Ive managed this by having a £2000 loan, then a £7500 loan. Both paid back in full..

I'm just under £29k a year.


(£40,500 mortgage, £0 credit cards, £0 loans, £3k overdraft, always in credit).

Wabiloo

Mini_Bear wrote: »

also if your an IT contractor in the City it may make you high risk for redundancy in the eyes of the bank.
im not tryin to be harsh re you not being on the voters role and moving regularly, but that is a part of how the banks credit score you.
did you ask the banks why you were refused a loan?

Sorry, I meant to mention it in my previous post: I am on the voters role. As for working in the City: I'm not working for a bank or a financial institution. I'm in the IT business and we're doing better than ever. My position is extremely stable (but yeah, I know, how would they know?)

I did ask the banks and all they say is: we don't do the credit rating, we use Experian / Equifax. But when I look at their reports, nothing shows...

EmzJenks

How many addresses are you linked to on Experian/Equifax? Like I said if there are alot of addresses linked to your name in the past couple of years it'll count against you.

Wabiloo

DGJsaver wrote: »

Wabiloo

How big , to the nearest yard , is the chip on your shoulder ?

Please explain how it is unreasonable to feel treated unfairly when you spend your life doing your uttermost to live within your means, never get into debt, be careful with your spending, have a good amount of saving, a very good job abd salary (which required a huge amount of work from my part) only to be turned down for no apparent reason (an no way of knowing for sure it seems) when asking for a loan the first time?

Wabiloo

EmzJenks wrote: »

How many addresses are you linked to on Experian/Equifax? Like I said if there are alot of addresses linked to your name in the past couple of years it'll count against you.

Only 2 in the last 3 years. I lived in London for 2 years and then moved North 18 months ago.

phoenix85

Don't think anyone has pointed out that the 13% A&L offered you is your tailored rate so to speak, the 8% they quote on the website is only typical.

Also, I did look on Sainsbury's site after being refused by Asda, but noted one of their terms is that you can't have been refused a loan in the past month - that may be the reason?

EmzJenks

Also not to encourage multiple applications as 3 refusals will be looking pretty bad on your credit report already...but I think some people with a decent credit rating who have been refused from others have had success with Tesco

Wabiloo

EmzJenks wrote: »

Also not to encourage multiple applications as 3 refusals will be looking pretty bad on your credit report already...but I think some people with a decent credit rating who have been refused from others have had success with Tesco

Funny that you mention that point about multiple applications. After the 2 refusals today, I had a look at my Experian and Equifax reports, and the searches do not appear there. Any idea why that is?

Tixy

Addresses over the last 6years are what will appear on your credit report. More than a couple of addresses can affect your ability to get credit.

More than 3 searches in 6months can affect your ability to get credit.

Having dormant credit available - can affect your ability to get credit.

All these and many more things will affect the chance of a bank lending to you. If you ask the bank at the point your credit application is turned down they will usually give you a clue - such as its based on affordability, percentage of credit used, amount of credit available, defaults on the credit file etc etc.

All banks do their own scoring, based on their own specific criteria and what they consider to be an ideal customer (and they are being choosy at the moment) so whilst they will have looked at what was on experian/equifax the CRAs won't actually assess you as a yes or no, so it sounds like whoever you spoke to at the bank misled you in that.

It is also quite often the case that you can be approved for a loan but only find out the APR you will be charged at a later point - the A&L 8% will be a typical rating not a guaranteed rating and it is likely to have said that in the small print.

You say the loan you have been offered at 13.7% will cost more than it would have done have you taken dealer finance - well that's not that suprising as with dealer finance the debt is secured on the car and is therefore much lower risk and lower risk equals cheaper.

I don't think anyone on here can judge if you have been treated unfairly or not. But the banks choose who they lend to and at what rate - always have, always will.

flyingscotno1

Typhoon2000 wrote: »

Borrowing to replace savings sounds all wrong to me. Still with house prices looking like they are about to head South again, maybe its a blessing in disguise.
Maybe they felt you were over commited or had too much credit already? What are the limits on your cards? Add the £14000 potentially in loans and is it getting close on half your annual salary or more?

Even that isn't fail safe. I know situations where it is not uncommon for cards and loan limits to be well over annual salary.

Wabiloo wrote: »

Funny that you mention that point about multiple applications. After the 2 refusals today, I had a look at my Experian and Equifax reports, and the searches do not appear there. Any idea why that is?

Perhaps you didn't meet their requirements (job too risky atm) and they refused you. I take it A+L is your bank? If you go to your bank they are usually O.K.