Credit refused, even though I have perfect credit rating?

phoenix85

The bank point is interesting - when I went to mine the typical APR on £11k was quoted at 25.6%. I didn't go any further than that, as the lady I spoke to said she was in similar circumstance to me (eg living with parents) and she got quoted 17% on a loan.

I was refused by Asda (Santander Cards) for £10.8k and A&L (£10k), then tried Tescos.

Before I went to Tescos, I looked at my credit profile. Realised I have my Next account with a limit of £2200! Hardly ever spend £100 there so got that cut down to £250. Then I left it a week or so, applied to Tesco's for £7k and now have that in my bank waiting to be spent.

Maybe the fact I reduced a credit account by £1950 and then asked for £3000 less was what actually got me approved. I'm not on a large salary so that £4950 more 'room' within what credit I'm allowed was what got me approved.

Point is - it may be worth asking for slightly less in the OP case?

Tixy

Another thing to consider is if all the information you have given on the recent applications has been identical. National Hunter is used by many banks and looks for factual inconsistencies in your applications forms http://www.moneysavingexpert.com/loans/credit-rating-credit-score#fraud.

In future you could try directly asking if National Hunter has been used in the scoring process or could consider getting a copy of the information it holds on you.

almost_there

A transaction fee for a card is normally 2-3% On a £10k car this would be about £200-300. Why did you not offer to pay this on top of the price of the car. I Doubt that the dealer would have declined and also i think it would have worked out cheaper than interest on a loan.

Wabiloo

almost_there wrote: »

A transaction fee for a card is normally 2-3% On a £10k car this would be about £200-300. Why did you not offer to pay this on top of the price of the car. I Doubt that the dealer would have declined and also i think it would have worked out cheaper than interest on a loan.

In hindsight, yes. I was however trying to be true to my principles and get things as cheap as possible... It was cheaper to pay with Debit card, and given that I had by then received info from A&L that my loan had been approved (at 8% I thought then), it sort of made sense...

almost_there

But you say in your l post about paying with a credit card, not the cheapest way for your principles!

Wabiloo

almost_there wrote: »

But you say in your l post about paying with a credit card, not the cheapest way for your principles!

Yes, I investigated paying with a credit card, but that's before the dealer told me that they were being charged that much by the CC company, and I'd have to pay that amount. I (innocently) thought that there was a flat low fee or no fee at all for CC transactions.
The reason I was investigating paying with the CC (something that I tend to do rarely) is simply because of the extra protection it offers (in case there is a problem with the car and a dispute with the dealer follows), and the fact that I have a reward card.

tamarto

No one is entitled to borrow money. It really isn't your right despite what you think. It doesn't matter if the banks will lend to santa claus and not you. If you want to be sure you have the moeny for something on your terms, save!

fabforty

Wabiloo wrote: »

Hi!


- A&L at 8%. I was told the loan was approved, and therefore went to buy the car. When I got the paperwork however, they sneakily put it at 13.7% instead of 8%. HUGE difference...
So, what on earth is going on?

Advise or help would be very welcome right now...

A & L didn't actually turn you down, they offered you the loan but at a higher rate. As another poster mentions, borrowing money is not a right and to get different decisions from different institutions is not unusal. I suspect that most people with credit cards, mortgages and/or loans have at some point been refused credit. I applied for a basic current account with Natwest and was refused. Two days later (in which time my circumstances hadn't changed) I applied for an full current account with HSBC and not only was it accepted, but I received a £100 cheque guarantee card, £250 overdraft and a credit card with a £5000 limit. There is no such thing as a right or wrong decision when applying for credit and apparently no obvious rhyme or reason behind these decisions. They have made their decision, just accept it and move on.

marmitedog

What makes you certain you've failed their credit checks?

The fact that A&L agreed to lend you cash but at a higher rate suggests to me that you simply didn't meet their profitability forecasts at the lower rate.

Somebody with a good track record is unlikely to incur fees etc.

Ultimately, businesses do not turn away profitable custom. Something in the mix means you're just not profitable to them.

Joeler

If you sleep in your new car you can have the best of both worlds

On a serious note the banks dictate who they will lend to. Ironically they are in a stronger position at the moment to pick and choose who they will lend to, rather than dishing out credit willy nilly. Must be frustrating though as you have always kept up your commitments.

-Ditch one of your credit cards or lower the balance - you don't need it to be high now anyway and you pay it in full every month.
-Talk to your bank if they were not the first port of call (A&L?)
-Wait a few months and apply again. Even if it takes 6 months before you can get 10k back in your savings account via a loan I'm sure it's faster than you could save it. Also I take it you weren't planning on buying a house immediatley or you wouldn't have spent 10k on a car when the additional equity would save you serious interest on your mortgage? Just an observation...