Bank refused me loan?!

Fenton271

opinions4u wrote: »

No. 51% of those who are accepted.

I am pretty certain that the bank have to accept at least 51% of the applicants who apply at the advertised rate otherwise they are in breach of advertising standards.

Gromitt

Fenton271 wrote: »

I understand that according to my credit score (973 out of a maximum 999) I am in about the top 20% of the safest people to lend money to in the UK

Only according to Experian, who are not willing to lend you any money, so it's completely meaningless.

People with a credit score of 999 get refused on a regular basis.

Banks like HSBC don't give a stuff what your credit score is. They make up their own. This could include you being a customer, previous relationships with you, profitability, etc.

Fenton271 wrote: »

I am pretty certain that the bank have to accept at least 51% of the applicants who apply at the advertised rate otherwise they are in breach of advertising standards.

Lets assume 10 people apply in a given month, 7 of them are on a debt repayment plan, 2 were bankrupt 2 years ago, 1 has a clean history. So you still have to accept the applications of at least 5 to satisfy the 51% rule? We'd have banks closing far more often if that was the case.

opinions4u

Fenton271 wrote: »

I am pretty certain that the bank have to accept at least 51% of the applicants who apply at the advertised rate otherwise they are in breach of advertising standards.

If they got too many applicants and didn't have enough money to lend the 51% that are successful they'd be insolvent.

They have absolute control over who they lend to. There is no rule, law or other statute that forces them to lend to somebody they don't want to lend to.

http://moneyfacts.co.uk/guides/credit-cards/what-is-an-apr240211/

A Representative APR is an advertised APR that a minimum percentage of customers (who are accepted) will pay. Under current EU rules this minimum percentage is 51%.

notts_phil

This thread is just another example of some fool believing the points don't win prizes number given by experian

When will people Learn?

Fenton271

notts_phil wrote: »

This thread is just another example of some fool believing the points don't win prizes number given by experian

When will people Learn?

That's not very nice nor constructive, is it...?!

notts_phil

Fenton271 wrote: »

That's not very nice nor constructive, is it...?!

I think it hits the nail on the head nicey

Fenton271

opinions4u wrote: »

If they got too many applicants and didn't have enough money to lend the 51% that are successful they'd be insolvent.

They have absolute control over who they lend to. There is no rule, law or other statute that forces them to lend to somebody they don't want to lend to.

A Representative APR is an advertised APR that a minimum percentage of customers (who are accepted) will pay. Under current EU rules this minimum percentage is 51%.

Thank you. The link was really helpful. I now understand a lot better.

Basically I might be in the top 10% (credit wise) of people in the UK. However my applicaion was considered to be in the bottom 49% of applications approved by HSBC for a loan.

I appreciate you taking the time to find me an answer.

notts_phil

Fenton271 wrote: »

Thank you. The link was really helpful. I now understand a lot better.

Basically I might be in the top 10% (credit wise) of people in the UK. However my applicaion was considered to be in the bottom 49% of applications approved by HSBC for a loan.

I appreciate you taking the time to find me an answer.

Why on earth do you think you are in the top 10 credit wise! You haven't accepted your experian number is meaningless

blueberrypie

Fenton271 wrote: »

Basically I might be in the top 10% (credit wise) of people in the UK.

You might, or you might not be. There's really no way to tell, as you can't compare your own credit record with everyone else's. As others have said, the number provided by the credit reporting agencies means nothing. Nothing at all.

However my applicaion was considered to be in the bottom 49% of applications approved by HSBC for a loan.

Again, not necessarily. Lenders don't simply rank everyone and say "those above this line will get a loan and those below it won't". They look at a wide variety of factors. Some might have a policy of not lending to anyone who has moved home in the last year, regardless of how good their credit record is otherwise. Or they might have a policy of declining anyone with less than ten years to go before retirement age. Or those who have more than a certain number of dependants. Or those whose monthly outgoings are more than a certain percentage of their income. Or those who are in certain kinds of jobs. Or those who live in certain postcodes. Or those who don't hold certain other products with them. Or those who do hold certain other products with them. Or....

In other words, you might be the perfect candidate in every way except for one, and get declined because of that - and that one factor might have nothing to do with your credit record. Or you might be a perfect candidate for one lender but fall outside the restrictions placed by another lender.

Try not to take it personally.

jonesMUFCforever

Fenton please answer my question on post 7#
Thank you.