good credit score but getting rejected

jennmark

dont know if any can give me some advice about this, my husband has a personal loan of around £9000 and 2 credit cards which total about £7000 (Virgin and Halifax), in addition we have a joint loan of £12000 that is unsecured but linked to our mortgage. the 0% periods have run out on both of his cards now, he has been looking for a new one and applied for a barclaycard last week but was rejected we both checked our credit ratings on the credit expert website and both got back scores of 999, so he applied for a Tesco Loan to consolodate the ccs instead and guarantee a finish date for the debt, we just got the rejection letter this morning .
i know we shouldnt make lots of applications as its bad for the rating but he needs to do something about the interest rate on the ccs to make a dent in the debt. does anyone have any ideas firstly why he's getting rejected and secondly what we can do?!
many thanks
Jen

CLAPTON

how much does he earn?

LoopyPrune

Your husband is linked to 28k of debt not including your mortgage. I would guess he has hit the limit as far as the banks are concerned. You need to read more posts as you will find out the 999 score means diddly squat. The only thing credit files are good for is to check on the data entries that have been logged against your name. The scoring part is just a con for more money (yes even Experian/Equifax need to make money) At the end of the day they don't lend you the money the bank does and they have their own scoring systems. As CLAPTON has asked, without knowing your joint incomings/outgoing we cant progress.

jennmark

we spoke to tescos to find out why hed been rejected, it turned out that they had assumed (he applied on line) that he was solely responsible for not only the joint loan but also our (pretty ample and joint) mortgage, neither had they taken into account the fact that he would be paying off the ccs with the new loan and on that basis decided with an income of ~£22000 a year couldnt afford the new loan - which would be right! we've asked them to re-assess if they cant come up with the goods we're going to hammer the ccs for the next couple of months and then try again, next time we will be applying either over the phone or in person to make sure there are no misunderstandings!

CHR15

That sounds about right. There is no way of them knowing that you will use this loan to repay the Credit Cards so they have to assume you will not.

Although the joint loans are between you, both of you are equally liable to repay the entire amount (if you leg it with the milkman never to be seen or heard of again, your husband will be responsible to repay the whole loan)

Hammering the credit cards is the best idea, pay the minimum on the one with the lowest apr, and overpay as much as possible on the one with the highest apr. Try shifting balances towards the lower apr card if possible.

sulkisu

jennmark wrote: »

neither had they taken into account the fact that he would be paying off the ccs with the new loan and on that basis decided with an income of ~£22000 a year couldnt afford the new loan - which would be right! we've asked them to re-assess

To be honest, I would be really surprised if this made a difference to Tesco. The problem with loans taken out to consolidate debt, is that there is nothing to force the applicant to use it to pay off debts, or to prevent them clearing the cards and then maxing them out again. In fact many people have done this. If they are being responsible and feel that you/OH cannot afford to take on more debt with what you owe already, they would be foolish to give you a loan, no matter what you promised to do with it.

LoopyPrune

Wasnt there a story in the papers awhile ago about a guy who went to his bank and asked for £35k for drive improvements for his house and then went a bought a Porsche. Certainly improved the look of his drive.

jennmark

thanks for the advice - looks like we're gonna be on bone soup for a bit!