declined loan - how do you feel?

regularsaver1

I was wondering how people feel when a bank states they have been declined, either on affordability or even more importantly on affordability

do you feel they are doing you a favour when they say that you are not meeting the affordability criteria?

We have seen a lot of posts, that say "the bank shouldn;t given me that loan" - but we also see posts where people are annoyed to be turned down

what does others think?

mrmajika

I work in lending for a high street bank and, during a normal day's work, decline a lot of people.

When I decline someone for a loan I always try to explain why they have been declined. I try and give advice as to what they can do to try and improve their chances of being accepted and arrange to call them 3 to 6 months down the line to see if I can help then. Most people seem happy with this.

Affordability is a big issue at the moment. If a customer does not pass the affordability assessment then there isn't even a credit search carried out, the loan is declined straight away.

Mark7799

regularsaver1 wrote:

I
We have seen a lot of posts, that say "the bank shouldn;t given me that loan" -

what does others think?

I haven't seen this from anyone who is not claiming to have financial difficulties and has paid back said loan.

regularsaver1

I have seen it and about credit cards

what do you mean mark?

psykik

mrmajika: whats this "affordability assessment" can u give us an example of how it might work with some made up figures pls?

thanks

little_bear_3

mrmajica is pretty spot on with those comments. It would be very difficult to give an example of affordability criteria as every bank works differently. You should definitely review the situation in the 3 to 6 month period as things do change. Even the better running of your account can improve chances of a loan being approved etc. Also if you can work out your disposable income after all your standard bills and things like mortgage and loan payments etc this is how the decision of affordability comes about The percentage used will vary from bank to bank - hope that helps a bit

Tr@cker

They usually say if you have no adverse credit, no late payments or CCJ's and plenty of credit history you are likely to be accepted. What other criteria does there need to be ?

Mark7799

regularsaver1 wrote:

I have seen it and about credit cards

what do you mean mark?

Have you seen or heard the phrase ""the bank shouldn;t given me that loan" in a post where the poster is not also claiming they are in financial difficulty?

I haven't.

regularsaver1

Yes true. Do you mean its blame culture?