Referral decision

natgee1

Hi

I applied to the co-operative bank for a unsecured loan and they said the decision had come back as a referral and they couldn't give me an answer for 3 days.

I have seen my credit file and all my accounts are all paid up to date so I'm not sure why they couldn't get an instant decision.

Could anyone tell me what a referral is?

wayne99

it means a human will look at the application rather then the computer, which is a good thing because it was not a no from the start.

Just wait the 3 days and see what the answer is, i assume your on th electrol role at your current address ?

Rafter

Whether you will get a loan isn't just dependent on whether you can pay your existing credit or not.

They will look at how much debt you have relative to earnings, how long you have been in your job, how well people in your postcode generally pay their debts, why you want the money etc. etc. etc.

Any one of these could have been too close to the computers rules to approve straight away. A certain percentage of all loans will generally be 'referred' just to check the computer is getting it right.

If you do get refused, worth posting back here with what you earn, how much you are trying to borrow and for what and someone might have some ideas for why you have been rejected. Co-op are unlikely to tell you and will simply refer you to the credit agencies.

Good luck

R.

Kazipoo

In my own experiences, a referral has always come back with a negative decision and in fact, one time, even the computer couldn't figure out why we were refused, the letter we received stated that the bank would not offer us a loan at this time, whereas usually it would give a reason, for example, affordability, or tell you to check your credit file etc, but that is just in my personal experience.... good luck though!