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

Weller, I don't understand why you keep reposting the same thing over and over again.

https://forums.moneysavingexpert.com/discussion/2501545
https://forums.moneysavingexpert.com/discussion/2501595

If you want further help, may I suggest you reply to one of the threads, as you are spamming up the board.

weller01

Sorry - it a genuine question as I have only become a member this evening so I have not reposted. I shall look at those threads and thank you, albeit not though for the frosty welcome.

zppp

weller01 wrote: »

Sorry - it a genuine question as I have only become a member this evening so I have not reposted. I shall look at those threads and thank you, albeit not though for the frosty welcome.

Apologies if I came accross as frosty. It's just that the same post has been asked 3 times and can cause confusion to other posters and those trying to respond.

If you have a look at your first post, there is a reply on there.

weller01

No problem - thanks for your help.

woody01

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.

Depends on how the lender classes your earnings.
It sounds to me that you have borrowed all available to you.

Sorry, and just to ask, why would you see consolidation as being responsible? Lenders don't see it like that.

weller01

Obviously I am not as well informed on the personal finance front, I genuinely did not realise that lenders saw consolidation that why!

bengal-stripe

weller01 wrote: »

......I genuinely did not realise that lenders saw consolidation that why!

There is no guarantee, that your debts will not increase.

Let’s say, you get the loan and pay off your credit cards. Than the (again) available credit burns a hole into your pocket and before you can say “Jack Robison” (or whatever), you’ve maxed the cards out again.

Now you have twice the debt you had before.

darich

A credit score of 505 and excellent????
I use experian and know that their scoring is out 1000 with that being the top score.
To achieve excellent on their score I think you need to be something like 950 or higher.
When I last checked my score a few months ago it was 900plus.....but not excellent....I was merely good or very good.

weller01

Equifax is 475+ for excellent. Different to experian

Apples2

weller01 wrote: »

Equifax is 475+ for excellent. Different to experian

You guys don't seem to be aware your credit score means absolutely not one Jot of difference!!

The only people who are interested in your credit score is the company you were daft enough to pay more to in order to get this random number.


All lenders have different scoring mechanisms, they don't care about your score. They look at the bigger picture in your credit history, your repayment history, your loans to earnings figures, electoral roll, personal stability etc etc etc..

Stop throwing money away to get some pointless number.