Loan declined because of a bank charge

cashorcheque

Hi,

My husband and I (joint income £63k; £1k on credit cards and a car on HP) recently applied for a £25k unsecured loan for home improvements with Tesco. Today we heard it was declined because we had a bank charge on one of our accounts within the last three months. It was because we didn't transfer some money between accounts quickly enough, so our water bill bounced - we paid it the next day by phone.

Do all lenders use this criteria? The underwriter called us to say that everything else was fine and that we should try again in three months. But we're thinking of going through HSBC, the bank with which we have our joint account. We just don't want to apply and impair our credit rating if this issue is going to be standard everywhere.

Thanks.

jonesMUFCforever

Tesco are cherry picking who they want as customers. If you have had a bounced transaction then obviously you are not want they want at present.
I agree that you should try your main bank as an alternative if you cannot wait 3 months before reapplying.