Tesco Loan Decline

weller01

Could anyone provide me with genuine advice here. Being responsible I thought that I would consolidate my debt in to one manageable personal loan repayment per month. I have an existing loan with Tesco and two credit cards. I thought it sensible to subsume my Tesco loan plus the two cards to one monthly payment over 5 years so that I would become debt free!

Knowing that Tesco use Equifax, I paid £14.95 for the credit repport and score and I came out at 505 in the "excellent" category. When calling Tesco I was hopeful, with perhaps the niave thought that as an existing customer I would also get a nice tick by my name. I would not have called had I not been quite so optimistic as a result of the positive from Equifax too.

The result was a decline due to my credit score. I was genuinely quite surprised and told to write to Head of Appeals etc. My issue is that I have never been declined for anything before and the fact that in trying to consolidate and being responsible I am now in a worse position as I will continue to pay more per month and I will have a search/negative on my credit file!

I would appreciate some genuine advice here! Has anyone had a similar experience. Additionally, all the "basics" such as homeowner/electoral roll/no missed payments etc etc are all absolutely fine.

zppp

weller01 wrote: »

Could anyone provide me with genuine advice here. Being responsible I thought that I would consolidate my debt in to one manageable personal loan repayment per month. I have an existing loan with Tesco and two credit cards. I thought it sensible to subsume my Tesco loan plus the two cards to one monthly payment over 5 years so that I would become debt free!

Knowing that Tesco use Equifax, I paid £14.95 for the credit repport and score and I came out at 505 in the "excellent" category. When calling Tesco I was hopeful, with perhaps the niave thought that as an existing customer I would also get a nice tick by my name. I would not have called had I not been quite so optimistic as a result of the positive from Equifax too.

The result was a decline due to my credit score. I was genuinely quite surprised and told to write to Head of Appeals etc. My issue is that I have never been declined for anything before and the fact that in trying to consolidate and being responsible I am now in a worse position as I will continue to pay more per month and I will have a search/negative on my credit file!

I would appreciate some genuine advice here! Has anyone had a similar experience. Additionally, all the "basics" such as homeowner/electoral roll/no missed payments etc etc are all absolutely fine.

Credit scoring varies lender to lender, and is based on the lender's criteria. Although credit scoring is an aspect, also any information you put on the application influences a credit scoring decision.

Regarding the score you have got, the actual score means nothing. It could be 999 and still decline. The problem you will face with refinancing, is that any loan application you make will assess the additional borrowing to pay off the credit cards as new credit, in case you never pay off the credit cards.

What are the balances and limits of your credit cards, amount on your loan and income, and we may be able to have a look. Alternatively, you may want to look at the Debt Free Wanabee board, for suggestions on reducing your debt and clearing it all off.

MrsTinks

First - consolidating is rarely a good idea... there is a few thousand people on the DFW board who can tell you that (Me included!)
Second - your score is nothing more than a pretty (and expensive) number - it means very little. However you may have had a close call there - dealing with your debts properly is not only likely to be cheaper but will teach you more about money management too

Post your statement of affairs up over on the DFW board and let the folks lend you a hand and some advice

weller01

Thank you for this - I will copy the thread over and see if I get some advice!