Ex- Credit Analyst - Throw your Credit & Underwriting Q's at me.

Snaggles

*zippy* wrote:

Hi Mike

Sorry if I'm being thick, but if your CC application is referred to an underwriter, what does this mean?

Hello!

It means it's being passed for a judgemental assessment - so it's not a definite yes or no at this stage. They will look at a variety of things depending on the lender - ie income/outgoings/account operation/credit ref agency info and your general circumstances, and will make a decision based on this. They may ask you for further info or supporting documents, such as statements/payslips etc.

They are basically assessing whether the risk (lending you the money) is worth the reward (the money they will earn from you in interest etc), and assessing what the chances are of you repaying them (they will use their own criteria so it's difficult to know what they will find most important - ie some lenders prefer home owners, some don't mind if you live in rented as long as you are on the electoral role - some don't like to deal with self employed people, some are happy to as long as they can confirm your income and you have a good track record of being self employed).

Good luck, hope they give you the decision you need.

Edit - Oh, and you're not being thick!

Mike_St_Helens

Thanks Snaggles... Hope you are well...

Snaggles

Hi Mike - great thanks (bit of morning sickness!) - feel free to correct any errors I make lol . I've left the ones that are mainly about credit files, because I don't know much about the technicalities, I just know what I would be looking for if I'm making a lending decision. I'm not ignoring anyone I promise!

Mike_St_Helens

Snaggles wrote:

Hi Mike - great thanks (bit of morning sickness!) - feel free to correct any errors I make lol . I've left the ones that are mainly about credit files, because I don't know much about the technicalities, I just know what I would be looking for if I'm making a lending decision. I'm not ignoring anyone I promise!

Cool Thanks... Im having a mare of a day. Doing our Bankruptcy forms today, now its a business thats failed it puts a whole new perspective on the whole bloody thing... We'll get through it mind.

Hope your morning sickness wears off.. have you any cravings yet ?

sarah_skint

Hi Mike,
i saw the money specialist yesterday she was really nice. I have now cancelled all my loan direct debits and am now about to send a letter to my credit card with an offer of a pro rata payment. On reading the terms on two of my loans she said that even if I go bankrupt there is a clause in them that says that i will still have to pay them - which would then lead me straight back to square one? Any suggestions
Sarah

Snaggles

Poor you, hope you get it sorted soon. Good luck with the forms. Whoever said it's an easy way out eh?

No 'official' cravings yet - I did try the old 'The baby needs cheesecake...' in Asda the other day but OH wasn't having any of it - he gently reminded me we were on a tight budget, and £4 on a New York Style Vanilla Cheesecake probably wasn't the best use of our money lol!

Mike_St_Helens

sarah_skint wrote:

Hi Mike,
i saw the money specialist yesterday she was really nice. I have now cancelled all my loan direct debits and am now about to send a letter to my credit card with an offer of a pro rata payment. On reading the terms on two of my loans she said that even if I go bankrupt there is a clause in them that says that i will still have to pay them - which would then lead me straight back to square one? Any suggestions
Sarah

Hiya Sarah, If you are made Bankrupt, it is legal statute - they must write the debt off, They will recieve some money if you have an estate or surplus.. If you have no money, then you have no money - They cant take what you dont have. The Insolvency service may be able to help you.. send them an email to : Insolvency.Enquiryline@insolvency.gsi.gov.uk

Who is the money specialist - Are they free ?

Mike

Mike_St_Helens

Joe_Bloggs wrote:

I got turned down for a Lloyds TSB 0% card. There was no obvious reason. I complained and it was suggested that I send the underwriters both my Experian and Equifax reports. Are they just on an information 'fishing expedition' since they have so much information anyway ? I ignored their offer. I got a 12 month Sainsbury's 0% purchase card a few months later.
I was told by my mortgage lender that they notify the credit reference agencies whenever I make a mortgage overpayment. I was also advised by my new mini-cash ISA supplier that they would be contacting Experian to look at my credit files. What is the world comming to ?
J_B.

Some lenders will ask you to get your repor, and send one to them.. reason being is so that when you call them to discuss it you are both singing from the same hymm sheet... If you get me.

Mortage lenders do im aftraid report overpayments, and as arrangements also... this isnt good and I never ever liked it. Someone could infact get declined as there is an arrangement on file, when infact it is a good thing !

Your ISA supplier will want a peep at your file im afraid, standard bank and ID practice. Fraud and FSA guidelines demand it.

Mike

Mike_St_Helens

justheclothesonmyback wrote:

Hi Mike, just to follow on in similar vein to nicecarkeys, - what info lenders actually see, (especially regarding 3rd party data), the following is something I came across whilst searching for the subject. It is an excerpt from a Radio 4 Money Box Live transmission in May 2005:

JOANNA: Oh hello, good afternoon. My question relates
to the Data Protection Act. On two occasions in the last couple of years
myself and my son have independently applied to Experian for our credit
file, and I was quite shaken when we received the details - he first and
then me subsequently received details on our own credit rating – and
included in the details in the file was the full history of credit related to
everybody else within the family. And I believe that this is actually
contravening the Data Protection Act. There was whole details about
my husband’s financial details, my financial details and other members
of the family.

LEWIS: Well a lot of people have made the same point
today and certainly in the past, so let’s put that straight to Jill from
Experian. What’s the position, Jill?

STEVENS: Well the very good news is that, Joanna, you
weren’t the only person to object to this. Many, many people did. In
fact the credit reference agencies themselves had some reservations
about the way we were legally obliged to link everybody in a household
on a credit report and, thank goodness, this has now stopped. Lenders
are no longer looking at information about household members when
they assess a credit application by an individual, which means we no
longer have to include that information. So if you get a copy of your
credit report now, you will see information only about yourself unless
you are financially connected to somebody with whom you live – that
would mean that you had a joint account with them, you had applied for
joint credit. But certainly it’s very good news I think for the majority of
consumers that individuals who live together are no longer linked just
because they share a house.

LEWIS: Neil …

MUNROE: Certainly I’d agree with everything that Jill’s just
said. And one tip really for anybody who is applying these days is to
actually make sure you give your full name and your date of birth. You
may not wish to do that, but if you can that helps obviously the credit
reference agencies identify specifically information about you.

LEWIS: Because if John Williams and his son John
Williams live in the same house, then they could have a problem there?

MUNROE: That’s right. So that’s one tip really just to do
that. I know it may not be something you want to do, but it will help
you.

LEWIS: And just on a purely factual point, if Mr and Mrs
Bloggs are living together and maybe have a joint bank account but have
separate credit cards, will they see all the details for each other or just
the details for the joint bank account?

MUNROE: They would see the file, the complete file if
there’s a financial association. So obviously if there is a financial link,
then it’s deemed through the arrangements that have been worked out
with the Data Protection Commissioner that obviously that would be
seen as a financial association.

LEWIS: So if you have a joint mortgage and a joint bank
account, you will also see the details of your wife or husband’s credit
cards?

MUNROE: Yes. I mean if obviously those arrangements
have finished, then you can obviously disassociate yourself, which is a
big word but basically you can actually make it clear that there aren’t
any financial connections between the two.

(**Editor’s note: Since this programme was broadcast, Experian have
provided further clarification on the situation for people living under the
same roof: Even if you are 'financially connected' to someone you live
with, your credit report will show only those accounts you hold jointly
with that person; if she/he has accounts in her/his own name not held
jointly with you, they will not appear on your report (and vice versa).LEWIS:
Sorry Jill, do you want to add something?

STEVENS: I was going to say that lenders are still looking at
people who are financially connected obviously because they are being
asked to lend responsibly and that’s why they’re looking at people who
are financially connected.


Now my question concerns the parts highlighted in red. OH has his experian report and as stated above none of my accounts show, my name is only showing as an associate. But what about Equifax? Above transcript was in May last year and I'm hoping that things have changed. Is this standard practice with CRA's now do you know Mike? Specifically with Equifax? (Have sent £2 off to them for report but need to know urgently for own peace of mind) .
I mean if you have a financial link shown as we have due to something like a rental (as I said in previous post, still can't figure how they linked us, unless they have access to marriage records and automatically link you?) We have NO ACTIVE ACCOUNTS IN JOINT NAMES WHATSOEVER AND NEVER HAVE - when lenders access his file from Equifax, will they see just his own active accounts or will they also see mine, even though they are not in joint names/accounts.
Really appreciate what you're doing - keep up the good work!
Thanks in advance
p.s. to clarify is a financial link the same as a financial association?

Oh dear.. Thats a long post ! Its getting a bit too deep for my education. But if you have EVER had a credit/utility or even rental serch that is joint, or even they ask.. does anyone else live at the property... this could have caused the link.

When you get your file, have a good look through it and see in the 'associations' section, that should point you in the right direction, if its wrong and you are not linked, then call the CRA and get them to remove that link.

Mike

sarah_skint

Hi Mike,
I saw a money specialist referred through the CAB so yes that was free!!!! I have missed one months payment on my credit card and have cancelled my loan debits so I expect the hassle to arrive just as my baby does!! I know it is looking like a rough couple of months ahead before I can even contemplate bankruptcy.
Also as you are filling in your forms what sort of questions are on the forms relating to gambling debts as the lady I spoke to said there is a part to deal with that - I hold my hands up to it
Many Thanks Mike,
Sarah