Referred to Underwriters?

AlexHaden2010

Hi All,

Just looking for some advice. Just applied for a loan for the first time in years - and its been referred to the underwriters.

Now I have checked all of my credit reports and they are amazing, and never missed a payment on anything over the past 20 odd years, but over that time, i have amassed a considerable amount of "available" credit on credit cards and other accounts - but it doesnt get used. As this available amount takes me way, way, way over what my annual salary is, im assuming thats why its been referred?

I dont use the available credit, is that the reason do you think that i have too much, even though its not used? Is it worth reducing the limits? I dont want to use this credit, as its mainly on cards, as im looking for a car loan at 7.7%

Thanks

zppp

AlexHaden2010 wrote: »

Hi All,

Just looking for some advice. Just applied for a loan for the first time in years - and its been referred to the underwriters.

Now I have checked all of my credit reports and they are amazing, and never missed a payment on anything over the past 20 odd years, but over that time, i have amassed a considerable amount of "available" credit on credit cards and other accounts - but it doesnt get used. As this available amount takes me way, way, way over what my annual salary is, im assuming thats why its been referred?

I dont use the available credit, is that the reason do you think that i have too much, even though its not used? Is it worth reducing the limits? I dont want to use this credit, as its mainly on cards, as im looking for a car loan at 7.7%

Thanks

It could well be. You need to see if the underwriters give you a reason for their decline if they do of course. If you can reduce any unused credit limits, that is likely to improve your credit report though.

AlexHaden2010

Just reduced 1 account and closed another, thats £9000 of available credit down......probably wont show in time though....

Now onto reducing my cards limits - that should free up around another 10,000.....:rotfl:

How the heck did they ever give me all of this anyway? Its insane!

immoral_angeluk

Lenders will not lend to anyone with a high income to debt ratio, many see available credit as debt as you can easily run it up in the bat of an eyelid, so I'd imagine it'd be a pretty strong reason to decline you.
If it is declined however and you have reduced it, then appeal it and tell them what you have done and they will look at it again.

[Deleted User]

AlexHaden2010 wrote: »

Hi All,

Just looking for some advice. Just applied for a loan for the first time in years - and its been referred to the underwriters.

Now I have checked all of my credit reports and they are amazing, and never missed a payment on anything over the past 20 odd years, but over that time, i have amassed a considerable amount of "available" credit on credit cards and other accounts - but it doesnt get used. As this available amount takes me way, way, way over what my annual salary is, im assuming thats why its been referred?

I dont use the available credit, is that the reason do you think that i have too much, even though its not used? Is it worth reducing the limits? I dont want to use this credit, as its mainly on cards, as im looking for a car loan at 7.7%

Thanks

is the 7.7% a flat rate or apr?car dealers often quote a flat rate the apr working out alot higher,maybe as high as using one of your cc if they accept them?

AlexHaden2010

Hi Everyone,

Thanks for all the comments, this has made me realise that its not just people with bad credit ratings that are experiencing problems getting credit, it affects everyone.

@John - The 7.7% is the loan with my bank, the Car finance people have quoted 11.9 - which i dont really want to pay that much in interest. The annoying thing is, its replacing my current car loan taken out 3 years ago, so my actual outgoings are the same....

Even more annoying is that i know the Car dealership will definatley give me the credit, but my own bank looks like they wont.

[Deleted User]

tbh the extra 4% apr is only £40 per thousand per year