Why are Barclays not willing to help..?

ferry

Hi all
Not sure if I'm posting in the right section here but I would like some advice on why Barclays will turn me down for any additional borrowing..
Basically I have been a customer of Barclays for over 20 years and I currently have a small unsecured loan with them which has never defaulted and will end early next year.I also have an overdraft facility which gets paid off end of each month when my salary goes in.
I called them earlier today to ask if there are any pre approved offers available to me(as there are from time to time) and they confirmed there weren't at this stage-ok,fair enough.When I asked about the possiblilty of a small Barclayloan to clear the exisiting loan and help toward the purchase of car I was told that I would be subject to a credit check which would be declined!
Now I have no other borrowing at present apart from a mortgage and the small loan ,but they will not let me have any additional borrowing.
Would there be any particular reason for not honouring any more borrowing?
I have had a number of loans from them over the years but these have always been successfully paid off.
Any ideas?
Also I have all my DD's through them too..
Cheers
Terry

Astaroth

Erm... certainly credit checking is common place even if you are an existing company with many banks but are you sure they said "it will be" rather than "it may be"?

Plus the question should be offering not honouring as there hasnt been any promise to lend you more

ferry

Astaroth wrote:

Erm... certainly credit checking is common place even if you are an existing company with many banks but are you sure they said "it will be" rather than "it may be"?

Plus the question should be offering not honouring as there hasnt been any promise to lend you more

Quite right-excuse my grammar.
And yes-they specifically said "I will be" turned down if I was subjected to a credit check as I asked the advisor to clarify this point.

dmg24

What did they say when you asked them to clarify?

Are you always within your authorised overdraft each month? Do you have to use your overdraft every month? If this is the case, perhaps they do not think that you could afford a larger loan?

Astaroth

I am curious as to how they "know" this - they cannot check your credit file without your permission (which presumably you didnt give/ was told about) and so it sounds like someone in the call centre just being on an off day unless you mentioned to them any occurances that would reflect badly in the credit history/ scoring system.

jonesMUFCforever

Their own credit scoring system will flag up a score betwen 1 and 9. If you are 1 you are likely to get anything you want and at best rates, 9 you will get nothing.
However credit scoring is not a foolproof system - sometimes things like a big transfer into an account one month and going out of the account another might distorte the score because in month 2 the system thinks you are massively overspending.
I would ask to make an appointment to see someone in person.

xmaslolly76

My husband has been told to stay out of his overdraft for at least 3 months then there internal system will give you a higher score and you probably wont need an external credit check :-) it worked for him

regularsaver1

sounds like the person you spoke to made an assumption based on something they know - ie overdraft ect???

kenshaz

We are second guessing here,but it sounds as if the person you spoke to is shooting from the hip,but do you want to risk a failed credit check,just do not go overdrawn,as advised for three months and prove them wrong ,then you apply from a position of security,perhaps they are useing over-drafts as indicators,any Barclays staff about who might know

andyboy190

hi Terry ,this is what happened to me , banked with them for years with no problems ,but always used my overdraft ,then i got turned down for an extra 500 pound on to my overdraft ...anyway i stayed out of my overdraft for a few months and needed to apply for a loan they then offered me a loan of up to 25 k and extra 2k on my overdraft and a mortgage of 150k !!!! so i think the overdraft could be your downfall here .

mrmajika

As a telephony lender for a large bank, I can tell you that customers have to 'demonstrate affordability'.

What we are told to look for is money left in the account each month to repay the monthly payments.

For example, if a customer is looking for a £10k loan for a car but is using up nearly all the overdraft each month with no money to spare, then the bank would class this as not having any affordability, as there is no money left to make the monthly repayments.

I know the bank I work for place a lot more importance on the way the account is run rather than any credit check information. I would imagine that this could / would be the same for other large banks.

Hope This Helps.