Help need - clarification of what "agreed in principle" means

greeny2

Hi There, after a recent split with my girlfriend and spending the last 4 years wrecking my credit i have decided the best thing to do is a clean break and sort my finances out. not my credit is very poor so i have tried a few different loan companies. eventually the Ulster Bank have written back to me with letter and contract to sign saying "i'm pleased to tell you that your loan is agreed in principle, subject only to the completetion of our final checks done on teh return of your completed loan application.

Now could you tell me doesn that mean they have carried out the credit checks or basicly whats going to happen now? i have gotta send in 3 recent pay slips and my last 3 banks statements, which is proving difficult as i have internet banking and they only release the statements in 6 month blocks and my last block was October and the next one wont be out till next mont. and the loan company are insisting it has to be official statements with address written on it etc. which means ill be sending them statements ending in October which makes no sense to me.

Anyways yes, can someone who udnerstand loans let me know where i am exactly as i dont want to get my hopes up or anything.

Hi to everyone and thanks for any help you give

PROLIANT

I had that, the whole process took over 2 months after sending in loan statements, credit bills etc and literally jumping through hoops they declined me without an explanaition.

Sorry to dampen your fire but don't get hopes up as once the loan is passed to RBS AVU (Application Verification Unit) unless your credit history is perfect you will be declined.

greeny2

Ah i see, i thought the credit checks had taken place already. never mind

lea_t88

I had something very similar with my Natwest but I was under the impression that they had already done this credit check, and they then just needed my pay slips to prove what I had said on the telephone was correct. I did it over the phone whilst an advisor was chatting to me and she did the credit check based on the info I had given her, and then said I would receive paperwork to sign and send back and then they would make the final decision. So it may depend on how you applied.

The stuff I had to send off was when I had already passed the check, but they wanted proof of what I earned before releasing the money.

greeny2

you see i went rhough a whole process over the phone that took about 45 minutes going over everything, so i assume everything was checked there! its such a pain being in this not knowing as its quite important. ill let you guys know how i get on anyway. thanks for the replies guys:money:

sscott5581

The process is intial credit check with Equifax and then subsequent check with Experian after required documents sent back, hence "approved in principle"

greeny2

Oh well i wont pass an experian, no point in sending in the stuff.