Been refused & credit card at same time!! help please

dentiststeve

Hi I have just been refused a loan (7.6%) from nationwide for £14999. The lady then processed an application for a credit card and again I was rejected.

I don’t understand the reasons behind this at all and am now worried about future implications - e.g. getting mortgage - looking to buy in 2 years time.

I have checked my Experian Score and it is 895 in the Good category. I earn about £7500 per month (gross) and secure in my job which i have had for the past 2 years. I have banked with nationwide for the past 15 +years and currently have about £45K in savings with them. The reason for the loan is to purchase a car. The money in savings is going towards a wedding in may this year and my tax bill.

The lady who processed my claim did not understand why it was refused and is going to appeal it, although she did mention something about the fact that I have moved about quite a bit over the past 3 years. In 2006 I moved out of my parents house (14 +yrs of living there) and have lived in 5 places since then. I have been on the electoral roll on my previous address, current and my parents.

The only credit i have is a car finance at the moment of which i have 6 months left (36 month term) paying £245 per month and have never missed a payment. I don’t have a credit card, but dont really want another rejection to show on my credit report. Especially as there are now 2 from today on there!!!

Does anyone have any idea on what is going on and what i can do?

Elbee

It could be because you only have a car loan, and not much else to base whether you are a good payer or not. It could be another reason, but if you want to check what information was seen by Nationwide, then you will need to contact Experian for a copy of your file. All lenders have different criteria so another company may accept you, but don't keep applying as lots of searches on your file can indicate possible fraud (someone applying lots of times until they get lucky) or desperation. Take a look at it and if you're not sure what things on there mean, either ring Experian or ask on here. Experian will not know why you have been declined. They only hold the information. Nationwide will have dictated their criteria - so when it's processed it looks like Experian have rejected you, but it's the lender. See what the appeal comes out at. Yes, they may not like that you have moved around, but if you have been on the electoral roll each time, then you have proved you are who you say you are and where you live.

dentiststeve

thanks for that. I've checked my Experian report (paid the £5.95 to see it) and there is nothing on there at all out of the ordinary that I can see and it says my score is good.
I had a 2 year gap from being on the electoral roll from 2006 to 2008, during which I lived at 3 addresses.
I think I'll just hold tight then and wait to see the result of the appeal. If that fails what would you do? get a very high APR credit card to start to show I am a good payer?

daniel_owen_uk

Or you could read up on stoozing, and just do that for a while.

CHR15

With £45K in savings and an income of £7,500 a Month..... how is getting a loan of £15K paying interest a good idea??

dentiststeve

as i said the savings is earmarked for a wedding and tax and i want to start saving asap for a deposit for a house. My car is in need of replacement in the next 6 months or so - my engine is slowly dying so a new 2nd hand car is in a pretty great need and i cant wait the year or so it would take to save to be able to buy outright. the loan would work out at £300 per month over 5 yrs which is very easy to maintain.

Joeler

Hi Steve

From what I hear Natonwide are overly cautious with who they will lend to. They are probably looking at the fact you are self employed. How long has this been for?

You need to check your credit reports to see if there are any issues. If you are patient, pay the statutory £2.00 with the three main agencies, Experian, Equifax & Callcredit. If you are like me you will sign up to them online and pay a higher price to see them faster!!

Savings are not taken into account by CRA's so the fact you have 45k in the bank will make no difference whatsoever. You could have £0.45p, one more credit card and a better rating for it!

On what basis did they decline you?

dentiststeve

Yeah I've checked my credit ratings online and there are no issues with them. I've got a good credit rating with experian and calcredit, equifax cant find one of my previous addresses and i need to call them when they are open next monday.

Nationwide were unable to give me any reason as to why they were declined, but i'm waiting on the results of the appeal.

PNPSUKNET

is this a wind up?

dentiststeve

no this is not a wind up!

welf_man

New engine or cheaper car springs to mind! What is your disposable monthly income?

Mel.