Campaign to Force Companies to disclose reason for refusing credit

BigDave_Cash_Saver

Lenders shoud have to disclose major reasoning IMO such as Defaults, CCJ's etc as some peopl just dont know their credit profile. They cant give away criteria though as it could invite fraud in the future as people will know what to put, or what NOT to put, on applications.

realmoneyexpert

Oh surprise - most people would like to see why they've been turned down.

Lenders turn most people down based on a score derived from a complex combination of factors that is usually proprietary. Lenders can't reveal their systems for rating customer risk, as this causes the system to fail as people try to 'fix' their credit rating. It just can't be done.

It's a shame for people that have an error on their credit record but the only way for them to fix that sort of problem is to check their record.

rjm67

realmoneyexpert wrote: »

Oh surprise - most people would like to see why they've been turned down.

Lenders turn most people down based on a score derived from a complex combination of factors that is usually proprietary. Lenders can't reveal their systems for rating customer risk, as this causes the system to fail as people try to 'fix' their credit rating. It just can't be done.

It's a shame for people that have an error on their credit record but the only way for them to fix that sort of problem is to check their record.

If the reason is purely due to some internal reason that isn't anything to do with your credit history then say so. Why spend time and effort doing a check if there isn't anything wrong with your record, and they could just say so. Surely getting people to be more credit aware, and regular checkers of their file means we get more financially savy people. To say that it can't be told isn't correct to my mind. It's like being charged for a crime without being told what the crime is.

strebor_2

took me ages to find out why i'd been refused credit long story but turns out Natwest put wrong info on my credit report (they admitted they were wrong took them over 10 months to correct it 10 months which included them saying they had done it more than once when they hadn't in the mean time i had been refused credit 3 times each time having a detromental effect on my score i have no other negative entries on my report

realmoneyexpert

rjm67 wrote: »

If the reason is purely due to some internal reason that isn't anything to do with your credit history then say so. Why spend time and effort doing a check if there isn't anything wrong with your record, and they could just say so. Surely getting people to be more credit aware, and regular checkers of their file means we get more financially savy people. To say that it can't be told isn't correct to my mind. It's like being charged for a crime without being told what the crime is.

You've misunderstood me/how risk profiling works. The reason IS to do with your credit profile including your credit history. That's used as the basis of their decision and they can't reveal their system for evaluating your profile/history. It's immediately self defeating if they do.

It's not a crime, it's a mathematical assessment of your likelihood of paying them back based on averages.

arobertoa

HELLO ALL !
i,v just registered to this site and reading all these quotes makes you understand one thing only ! applying for credit is a lottery, i have a good record with equifax a fair one with experian and a good one with callcredit, not bad eah ! my missus is similler to mine but seems to be the same story as all the members on this site, i need a loan to basically consolidate a few other debts and some improvements at home, i applied to smile.co.uk (co-op)for a loan and they said that apr is dependent on cred history, but within 1 min online application i was declined, not even given a higher apr option, just dont understand these companis that dont contact you for any more info if required, the problem is now i,ll have to wait a few months to make an application to another company as too many applications in short space of ttime goes against your score, vicious circle or what !

Allosunshine

I totally agree, companies should be forced to tell you why instead of hiding behind the credit scoring system. If you were told why you wouldn't feel so down about it and think fair enough or be able to correct them.
I recently applied for a loan with Norhtern Rock and was turned down. They use Equifax for as they're Credit Agency so I got my report and credit score and it came back as excellent. So I appealed and still got turned down saying 'on this occasion Northern Rock are exercising there right to decline due to set policy' which they wont divulge, fair enough but they wont even give me a hint or point in the right direction as to why I was turned down. To me its just a cop out.
When I did ask why they said they couldn't reveal policy because I could just apply again and change my details. But I dont see how I could because they would know if I was lying or not after doing a credit search and it would be even harder for me to get credit.

annamarie_4

I have a very good job and an excellent salary. My credit rating is "Average" so why is it that I can no longer get a new credit card for balance transfers or a consolidation loan? The answer is simple but I didn't realise what the problem was until I applied for stand alone ppi and got turned down because they do not insure women over the age of 60! Despite the fact that I am still at work I'm classified as a pensioner! So yes I'd like to have known the reason too!

poppy_f1

i held a barclaycard for approx 12 years, for the past 2 of these i used to get mailshots approx every 6 weeks offering me a loan with them, at the beg of sept i decided i wanted to take a loan out to buy a newer car as well as clearing some credit card debt, so barclaycard loans were coming out competitive and since they had offered me loans in the past i applied = didnt want ppi
got the decline letter a few days later - reapplied immediately with rbs (my bank) had the money in my account a few days later - yesterday came home from holidays to find out they are upgrading my credit card with them

coincidence i didnt take ppi - i wonder so yes i would like to know why i was declined

rjm67

Really interest to see people's comments on this one. I do still hold very strongly (as do 88% of use that have voted) that something should be fed back. Every point against it on here is valid, but could be dealt with without compromising the companies procedures themselves. It's not that difficult. Suitable responses just need to be a) internal, b) credit report issue. That way you know whether your need to check you file or not. We all think that these things are managed properly, but I have twice had to go back to credit card companies to remind them that I sent them a letter to close my account and show it as such on the credit agency files, because they haven't done so when asked. By the way, I did also read somewhere (I think it was BBC) that it is illegal for companies to black list based upon your postcode alone.

Might pop this question up on the egov voting website.

Cheers all.