Campaign to Force Companies to disclose reason for refusing credit

rjm67

mhadit wrote:

unfortunatly credit companies are under no obligation to tell why you were refused. It should, however, be fairly easy to tell why you were denied. How much "disposable" income do you have. How long have you been at your current job (ie how secure is your employment)? How is your past credit?
Put all the peices together and you'd probably get they're reasons.

There are ways, though, to improve your situation in such ways that you are a better candidate.

Sincerely,
M. Hadit.

http://controlmydebt.blogspot.com

I wish that this was the case, but sadly it isn't that simple. I regularly check my credit files, and this year I've used the checkmyfile website too, and used their own credit scoring add on to see if there was anything obvious. They scored me highly with every agency, so I am still at a loss why they refused it.

odLott

I would bet that in most of these companies, very few people would actually know why people have been turned down for credit. All they could do is look at credit files manually and try to guess why the computer said no.

regularsaver1

doyou agree with companies - banks, sharing info between them ?

roswell

if computer says NO then person entering the data says NO, its not the person that makes the decision and thats why they suggest you check your crddit file.

Out of interest if its a lender you are already with its most likely that although they love yyour loyalty your becoming to much of a risk for them.

hedgepog

Well now I've heard it all. I have just fallen at the first hurdle of getting myself a loan .... because ... I don't have a home telephone? FGS how on earth can that be a valid criteria as to my creditworthiness?? Surely the fact that I work full time, have a bank account, have a credit card, own my home should be taken into account, nevermind the fact that in this day and age, why do you need a home phone - my mobile contract includes free local and national calls all day and night within the monthly fee. Very disappointed.... does anyone know of a loan company who are not so ridiculous.

lostcrusader

I do agree that some form of efficiency in credit checks and information should not hinder a persons position as far as credit.

I have had bad reports based on outside factors but I did manage to recover my own file to somewhat a normality.

I feel though that as many people are now shopping around for best credit it is reflected on our credit files so can hinder any applications.

Wish banks would update their records though Ggggggrrrrrrrrrrrrrrrhhhhhhh


:mad:

PS.. I guess the banks are busy sorting out the reclaiming charges issue

:rotfl:

BlueStringPudding

Hello,

I agree. If companies don't tell us the reason for being refused credit, how can we ever improve ourselves? Not only that but they're missing out on future custom, because once given the opportunity to better ourselves, we become viable customers for them (and other companies) for the future... then they can can make a profit from our borrowing.

MSE_Martin

I have a lot of sympathy with this idea - yet it would mark a fundamental shift in the way companies operate.

The thing to remember is the fact you've been rejected doesn't mean there's anything wrong. It means they dont want you as a customer. Of course this may be because you're seen as a bad risk - but it may simply be that it doesn't want you because you won't make it money. If you read my latest credit scoring article you'll see examples - e.g. the company wants mortgage customers so it scores its current account applicant on how likely to get a mortgage they are.

Martin

MortgageMamma

The amount of clients that come to me in utter disbelief when they have been refused credit but there's nothing wrong with their credit file is enormous. Probably 1 in 2. Its the not knowing that does people in the most. That an embarassment and the feeling of unworthiness that comes with rejection. I think that lending institutions of all descriptions will be tightening their criteria when it comes to lending, mainly due to speculation from regulators about the amount of debt individuals in this country have, and responsible lending criteria. How many of you know that welcome finance had their knuckles rapped by their regulator and were told that their 45% aprs were just too much?

Hopefully the next generation will have the benefit of mandatory financial awareness courses in school, so before they are even old enough to use a credit card they are taught the dangers and how to handle money. Perhaps an early education system on these things would reduce the amount of bancruptcys and IVAs we have every year.

ohmsoft

I do think we often forget that lending institutions are (mostly) buisnesses intending to make a profit and as such are entitled to make a commercial decision on who to lend to. Often this criteria is confidential (and in the case of suspected fraud, legally privaliged).

Like others have said, the complex nature of credit scoring does not lend itself to providing reasons all the time - if they did I think there would be a risk of the exact lending policies becoming public, pieced together like a jig-saw puzzle. There is an argument that this should happen - but I think it would drive down competition as the criteria would have to become more prudent.

I therefore voted - no