Knocked back for Sainsbury's loan

allyb79

Hi all,

Have recently applied for a loan with Sainsbury's and have been knocked back. We bought a house 2 months ago and have a good credit rating, no credit cards and a v small loan.

Has anyone else experienced this....I can't understand why they've done this, especially as now there will be a trace on the credit file where they've done their search Are they under any obligation to tell you why you've been refused? Will this affect future applications??

chalkie99

If you only bought the house two months ago, and gave that address on your application, you are probably not appearing on the electoral role.

pleasedelete

My oh who earns £160k and has very little debt (10k car loan which will be paid off within 12 months that's all) got turned down by sainsburys for a 15k loan earlier this year. Did a cash balance transfer instead and was given a card with a 25k limit - 3 per cent transfer fee and interest free for 22 months- so overall a better deal than sainsburys- so with hindsight a good thing but he was bemused!

Been on electoral role for 20 years.never ever missed a payment etc etc

kavics17

My OH was refused too, with Sainsburys, TEsco and Nationwide too. Apparently he is too safe: no debts, no overdraft limit, no credit card, no store cards. He is on the electoral role and earns good salary. He got a letter saying that he failed the credit check.

tell_it_how_it_is

Frustrating, but it is their money so I guess they don't have to tell you their reasoning. If your small loan is with someone else, and you've been paying it okay, maybe it is worth trying them again?

As for post 3, the thing that bemuses me is that people on such high salaries - 8k pm in this case - even need/choose to have a loan in the first place. Just my opinion like.

CLAPTON

kavics17 wrote: »

My OH was refused too, with Sainsburys, TEsco and Nationwide too. Apparently he is too safe: no debts, no overdraft limit, no credit card, no store cards. He is on the electoral role and earns good salary. He got a letter saying that he failed the credit check.

he wasn't too safe
there was no history of managing finance well so he was a unknown quantity and so high risk

opinions4u

Low rate providers cherry pick the best applicants. Whereas a high street bank may approve 50% of applicants at a higher rate, the likes of Sainsbury probably decline 75% of applicants.

Time at address 2 months = higher risk.

Are they under any obligation to tell you why you've been refused?

Yes.

Reason 1: You failed our credit score.
Reason 2: We declined you based on information provided by a CRA.

Both are explanations. But they don't have to explain how their credit scoring systems work.

Melaniep101

I just got declined a loan from Sainsbury's too. My credit report is in good order, but like you, I've just bought a house with my partner.

I got told it was down to affordabilty that my application was declined, even though I have around £1800 disposable income available each month! The loan repayment would have only been £200 a month.

Never mind - guess I'll just save up instead.

CLAPTON

Melaniep101 wrote: »

I just got declined a loan from Sainsbury's too. My credit report is in good order, but like you, I've just bought a house with my partner.

I got told it was down to affordabilty that my application was declined, even though I have around £1800 disposable income available each month! The loan repayment would have only been £200 a month.

Never mind - guess I'll just save up instead.

I'm not sure what a 'disposal income' is but with 1,800 disposal income why did you need a loan?

allyb79

pleasedelete wrote: »

My oh who earns £160k and has very little debt (10k car loan which will be paid off within 12 months that's all) got turned down by sainsburys for a 15k loan earlier this year. Did a cash balance transfer instead and was given a card with a 25k limit - 3 per cent transfer fee and interest free for 22 months- so overall a better deal than sainsburys- so with hindsight a good thing but he was bemused!

Been on electoral role for 20 years.never ever missed a payment etc etc

So they thought that you would pay off the loan in quick time and not give them all their interest I guess?

allyb79

kavics17 wrote: »

My OH was refused too, with Sainsburys, TEsco and Nationwide too. Apparently he is too safe: no debts, no overdraft limit, no credit card, no store cards. He is on the electoral role and earns good salary. He got a letter saying that he failed the credit check.

Well that probably puts Nationwide out for us too, was thinking of them as the next step....guess we'll have to go down the credit card route (current loan is with Lloyds and already tried getting and extention/another loan with them. They offered us one at 27.9%, even more expensive than our current loan).

Getting credit seems to have become more of a minefield than ever before!! :eek: