Credit rating of 985 but can't get a loan!

gh1981_2

Hi,

After having some historic credit problems which I've worked very hard to improve over the last few years, the final adverse entry on my file (an old settled default - £316) dropped off of my credit report last week after 6 years. I recently ordered my rating from Experian and it was 985, so assumed I would now get the pick of the deals out there, but no! I have now had applications for a £5000 loan refused twice - once by Sainsburys and once Santander.

I'm at a bit of a loss to understand why this is. The only negative entry on my report is 2 late payments dating back over 4 years (I have also checked Equifax and the report is similar). I am on the electoral role and have been at every address I've ever lived at, and am on 26k p.a working full time. I've made no other credit applications in the last 6 months other than these 2 (and in fact the Sainsburys one has not even registered as a search on either report).

The only debt I have outstanding is £2200 of a £3000 loan at 16.9% apr with Asda loans (now Santander, I believe). My outgoings are reletively low; my share of the rent is £350, and all the other usual bills etc are shared with my wife and are easily affordable.

I planned to consolidate the Asda loan with the new one, as well as paying off about £1500 of debt in my wife's name (3 cards all of which are at around 35% apr), and put the rest towards a holiday. This would leave us about £60 per month better off!

The only thing I can think of which is going against me is that I started a new job 7 months ago and relocated with it, so I've only been at my current address 7 months as well.

I'd be grateful for a bit of advice. Having made 2 applications I don't want to ruin my report by keep getting refused and want to make the next application count! In particular, does anyone have any idea as to why I could be getting refused, and also, can anyone suggest a (mainstream!) lender who are currently lending to people with my sort of credit profile?

I know there are never any garentees, and that nobody is 'entitled' to credit, but I'd appreciate any suggestions.

Thanks in advance!

tony_the_typer

very useful advice thanks.

soul619

unfortunately those scores mean nothing as they are based on the general factors the reference agencies use. each lender has there own specifics so although experian give you a score of 985 Asda may only give you 600 or even lower..

speaker1798

How do you know this?

Dabooka

The credit agencies "score" doesn't allow for a financial institution's own criteria. For instance, income is a huge element in obtaining credit but doesn't even feature in the "credit scores" issued by the agencies.

It's a meaningless number.

With regards to the OP, if you and your wife are financially linked it could be your income to debt ratio is too big; your loan alone is best part of 10% of your annual income before tax. What's your total debt obligation compared to income?

Or maybe you've moved around a great deal (suggests instability) which is rattling them. Normally the advice on here is to try your won bank first as they have a trading and long standing relationship with you and your finances.

worried_jim

Ignore the credit score, no one takes any notice and scores applications to their own criteria. The score is just a ply to get you to pay for your results if you can "improve" it you'll keep paying the subscription.

heartsman

As ive said for years about credit agencies big brother scum, you could have a score of 999 and still get turned down.
The whole system stinks,the sooner these scum are shut down the better.

worried_jim

heartsman wrote: »

As ive said for years about credit agencies big brother scum, you could have a score of 999 and still get turned down.
The whole system stinks,the sooner these scum are shut down the better.

Well thats me out of a job then.

KPR11

heartsman wrote: »

As ive said for years about credit agencies big brother scum, you could have a score of 999 and still get turned down.
The whole system stinks,the sooner these scum are shut down the better.

Maybe we should go back to the days where you just can't get credit since there is no way for the lenders to assess your creditworthiness?

I know and appreciate the system is far from perfect but it's a lot better than not having a system!

What exactly have they done to you to deserve so much hatred from you?

RobertoMoir

heartsman wrote: »

As ive said for years about credit agencies big brother scum, you could have a score of 999 and still get turned down.
The whole system stinks,the sooner these scum are shut down the better.

So what would you suggest replaces it?

"Fight the Power" only really works as a song lyric because out here in the real world we need better solutions before we can tear down the ones we currently have.

gh1981_2

Thanks for all your replies.

Dabooka, no we're not financially linked. Have moved around a fair bit though - 4 addresses in the last 6 years, although 3 of them were in the same town, and as I say was on electoral role on each. I guess this most be the main issue then.

I've now spoken to my bank (Co-op) over the phone. They cannot offer me anything at the moment because I have a basic 'Cashminder' account at present. However they told me that my record with them is good and that I am likely now to be accepted for a current account, so I've now applied for that (so another search - grrr!) and will take it from there.

In the meantime, I think I'm going to apply again but for a lesser amount. Is anyone aware of any lender(s) who are perhaps slightly less fussy and who have lent to someone with my sort of credit profile?