Refused credit despite good rating

jodenice

My boyfriend went for a loan for £20K consolidation with Abbey (he already had one loan with cahoot and apparently abbey took them over). Equifax has him down for an Excellent credit rating.

Recently we have obtained a mortgage and the only thing on his credit file is one late payment to Next by one day.

He earns over £35K, we've been living here for over 3 years and he's been in his job for nearly a year.

anyone think why he was refused? Is there a different company that would be better?

Jo

tom188

Cahoot is the internet arm of abbey, being left to whither on the vine by banco santander. It has always been part of abbey.

Had your bf still got the cahoot loan? if he has he would probably have been rejected if the amount to borrow would take him over an overall lending limit.

Equifax/experian credit ratings dont mean anything as each provider uses their own criteria.

What else could get him rejected?
Has he made any recent cc / other loan / mortgage applications.
Is he on the electoral role.

Unity

I'm sure I read of somewhere where you can check your credit rating for free, but I can't for the life of me remember where. It might be worth a net search though.

Unity

tom188

maybe, but they are no more than a guide, and a very rough one at that

jodenice

Yeah I guess our mortgage application will show - although it was only one and accepted. The loan amount is definitely more than the one we have already - we are (hoping to) consolidate all our loans and credit cards ready to move. i think as well as equifax he looked at the credit score (and the one on money supermarket) and it shows as excellent, I know its only a rough guide but we've not really got a lot more to go on!

regularsaver1

Are you sure it was credit score and not affordability ect

anniecave

yeah I don't know how many questions they ask about how much you earn and also what your outgoings are. Perhaps they wonder if he's only been in the job a year then perhaps he may lose his job then not be able to afford to pay it back. £20K is a lot of money to pay back. It doesn't sound too much in relation to a well paid job, but if income dries up then it's a risk for the bank. It would be the sort of thing I might go in person to my current account provider to discuss. My work colleague got a managed loan via his current account provider and they went through all his finances and consolidated his existing loans and worked out what he could afford to pay back. He managed to pay it back sooner than the loan agreement and saved himself interest on the last part of it. It depends on what rates they offer I guess.

jodenice

well the credit rating was good but I don't think the loan company used it, they had a different scoring system - not sure exactly why he failed. The loan does sound quite hefty but we're already that much in debt just paying far far more than we would do for a set loan. Just want to get one payment and close everything else down!

tom188

How recent was the mortgage application?
If he is going to apply again it would be best to wait a couple of months, then he may be more likely to be accepted.
Loan companies frown on applications that are too close together, they think you may be exposing yourself to too much credit too quickly.

Bokken_2

[QUOTE=tom188

Equifax/experian credit ratings dont mean anything as each provider uses their own criteria.

.[/QUOTE]

If the above two companies credit ratings "don't mean anything" why are they in fact in exsistance at all and providing a service to the credit card and loan companies.
Their reports form the basis of an assessment along with other criteria by the credit card or loan company you are applying to.

Astaroth

Their credit ratings dont mean anything.

The service they provide to companies is to give credit history and not ratings. The company will have its own scoring system to turn the history and other questions into an over all score.