Declined Loan - Excellent Credit Rating

Thesnowclears

Okay so heres the story:

Im 25 years old, been working in the same place for 7 years, I make about 1200 a month after tax. I live with my girlfriend who I am hoping to marry in May 2013. However to be able to afford everything we need a personal loan.

I applied to Sainsburys before reading any reviews and instantly regretted it when i did. I phoned the next day to cancel the application which had all ready been declined.

I then phoned my bank - Nationwide who I already have a loan with (£500) and requested a £9000 loan which would pay off the one i already have and leave enough to pay off the essentials for the wedding. The woman said it was in 2 parts - Firstly a questionair on the phone and then a credit check. After giving all my income and outcome details, the woman said i would be practically guaranteed the 9k as long as my credit check was passed. 5 mins later she came back and said that due to experian, my application was declined.. and if i had any questions to phone them. Knowing that my credit score was 991, I obviously phoned straight away and the man i spoke to said that the only reason he could see why anyone would decline, is because they dont hold much details about me and that my credit score was as close to perfect as it could be, He also suggested i appeal the decision by my bank as any details should be held by them (ive banked with them for 8 years).

My question is: Is the application worth appealing? and if not: what are my alternitives? The venue we want to get married in is filling up fast and theres no way we can have the money saved in such a short period of time (they want the deposit end of November)

Thanks!

sharpy2010

You should really think about getting married in May 2014, as this will give you more time to save up for the wedding you want WITHOUT having to obtain a massive loan to do so.

Going into a marriage in debt is not a good idea :-(

Im sorry though, if this isn't what you want to hear.

Thesnowclears

Hi and thanks for the reply!

Getting married in 2014 isnt really an option for personal reasons... as well as the fact the price rises by over £1000 for the venue alone!

My bank did actually tell me that they use experian for the credit check.. and i passed all other aspects of the loan aplication, but it came back declined 'due to external reasons' ie my credit score... which is 991

So confused!

MamaMoo_2

Thesnowclears wrote: »

Hi and thanks for the reply!

Getting married in 2014 isnt really an option for personal reasons... as well as the fact the price rises by over £1000 for the venue alone!

My bank did actually tell me that they use experian for the credit check.. and i passed all other aspects of the loan aplication, but it came back declined 'due to external reasons' ie my credit score... which is 991

So confused!

The 'credit score' that experian give is worthless. That's their estimate at how trustworthy you are. However, a bank etc will use information from your credit report, along with any information they hold on you (eg salary) to internally score you, and it is ultimately their score which matters.
It may be worth checking your credit report (with Experian, Equifax and Callcredit) to make sure that there isn't anything on there that could affect anything. (eg CIFAS markers)
Make sure you're on the electoral roll, make sure all your credit is registered at your current address, keep credit applications to a minimum.
However, if you have had little or no credit, it's likely that this is affecting things. Places are more likely to lend to people who have a history of managing credit, rather than those who have no real proven history due to no real credit ever having been awarded.
Do some research into lenders, and find out which are more lenient/more likely to award credit.
Alternatively, you could appeal to your bank, as you have a relationship with them already. Provide them with evidence of your incomings and outgoings, show them that you can afford the repayments, and maybe even offer them a copy of your credit file. If you do appeal, build yourself a very good case. Very few loans that are declined are overturned on appeal, so perhaps research successful appeals?

chanz4

If you dont have much info on experian how can it be perfect, it does not demonstrate how you run your credit accounts I give you a score of 1 today . As others have said debt in marriage start does not go, what if it doesnt work you are left to pay for the day.

CLAPTON

no responsible lender will give 9,000 loan to some-on on your modest salary

save what you can in the next 18 months and spend only that on the wedding

KingElvis

You don't earn enough to borrow that much, simple as that.

tell_it_how_it_is

Thesnowclears wrote: »

Getting married in 2014 isnt really an option for personal reasons... as well as the fact the price rises by over £1000 for the venue alone!

Well, you say that, yet you would rather pay probably MUCH more than £1000 by getting out a loan instead, thereby risking regular monthly battles to pay it back while accruing even more interest! Is there perhaps not a cheaper option earlier in the following year?

As mentioned elsewhere, it might cause problems in the marriage being in debt from day one. Personally I'd suggest at least considering putting it back into 2014, and see if you can put a little aside towards the cost over the next 12 months. It'd possibly help you look for a smaller loan next year, and give you confidence you could set money aside to pay it back comfortably.

Boring advice I know, but if it was to help towards a long and happy marriage, then job done! :rotfl: Good luck!

ChopperST

KingElvis wrote: »

You don't earn enough to borrow that much, simple as that.

Agreed,

Thats going to be your problem, it will take you well over the income to debt ratio a mainstream lender would like to expose themselves to.

We put our wedding back by a year to next June as my fiance lost her job last year, now has a new and better paid job and we have saved up to pay the wedding and honeymoon in full. Why not look at taking a second job to make up the difference or postponing for 12 months and save up. I really does give you a sense of achievement.