V12 Retail Finance - Application Declined

Pvd

Thanks to all for your feedback and advise given. Appreciated. Realised that I'm not going to get an answer from them or any explanation and will only be wasting my own time.

Thanks again.

purple_tang

Hello PVD,

Ive just had the same from the same company. Im very suprised as I believe my finance history to be good although not checked.

Info about me.

Mortgaged with utilities each month.
No credit cards (have had in 2010 but paid off)
No car finance (company car)
1 piece of furniture on HP
No ccj`s, bankrupcy or other negatives

Possible points of interest?

Only been in my house im in for 14 months (previous for 10yrs)
Previous owners semed to owe/ have owed money in past.
My bank called me last week to question a payment from my account last week. it wasnt me so my account was rereshed This wasnt the acount I used in the application.

Im at a bit of a loss what to do. Not that worried about not getting the finance but concerned about why, have i got black marks that are not mine, has this refuasal damaged my rating, if i do ann experian does this damage ratings.

Any advice greatly appreciated as we have not missed any bills or anything we believe could contribute to this?

arcon5

Im at a bit of a loss what to do. Not that worried about not getting the finance but concerned about why, have i got black marks that are not mine, has this refuasal damaged my rating, if i do ann experian does this damage ratings.

Check your credit report to make sure everything is correct and in order. It's unlikely to damage your report, it won't show as declined on it anyway. Read above post about 'foot prints'

Any advice greatly appreciated as we have not missed any bills or anything we believe could contribute to this?

Depends on how much you earn, have disposable, looking to borrow etc. They want to be sure you are not over-stretching yourself financially also.

Or could just be as already said - they won't make much money from you

purple_tang

arcon5 wrote: »

Check your credit report to make sure everything is correct and in order. It's unlikely to damage your report, it won't show as declined on it anyway. Read above post about 'foot prints'





Depends on how much you earn, have disposable, looking to borrow etc. They want to be sure you are not over-stretching yourself financially also.



Or could just be as already said - they won't make much money from you

I am in the process of checking via noddle as it was this organisation that the finance company use.

Around £40k for me (wife earns 30K), I was looking for £500 and we have no other expenses other than house related.


Possibly latter but it does worry me though specially with the points I made earlier.

arcon5

purple_tang wrote: »

I am in the process of checking via noddle as it was this organisation that the finance company use.

Around £40k for me (wife earns 30K), I was looking for £500 and we have no other expenses other than house related.


Possibly latter but it does worry me though specially with the points I made earlier.

With a perfect credit report and a history of borrowing, i'm betting your main bank would lend you the nominal sum of £500 (about 1.25% of your annual income).

fluffnutter

purple_tang wrote: »

I am in the process of checking via noddle as it was this organisation that the finance company use.

Around £40k for me (wife earns 30K), I was looking for £500 and we have no other expenses other than house related.

arcon5 wrote: »

With a perfect credit report and a history of borrowing, i'm betting your main bank would lend you the nominal sum of £500 (about 1.25% of your annual income).

Jeez, I'd lend you 500 quid

sweetstudent

Would it not be easier to get an Interest Free CC and buy it on that, as opposed to a finance company which can/will/could charge exorbitant amount of interest?

jjj1980

Used to work as a Senior Underwriter so will try to help.

Firstly, the credit scores given By the Credit Reference Agencies mean absolute zilch.

Every finance company uses their own version of credit scoring and in turn, if they provide credit facilities for different retailers/suppliers, each one will have their own scorecard. This then extends further to different types of finance, eg Buy Now Pay Later, Interest Free Period,Interest Bearing, all having a tailored version.

The scorecard, which would never be divulged even to 99.9% of staff details how many points to allocate to each piece of the customers personal details. So one scorecard may favour older, one younger. One may favour odd house numbers, one even (yes, some are really that defined). The total points are then added up and then referenced back to the scorecard, which will have set ranges for the accept, refer and decline decisions. Some scorecards are even 'negative' based, where 0 points would be the most desired outcome.

This all done automatically via the computer system. The staff would most likely never see any mention of the number of points scored.

A lot does on an assessment of your credit file and how the information shown reflects your ability to repay. Whilst its totally understandable to want no debts, even if they are completely manageable, this just means that there is no record of how you would conduct a credit account.

Where we found a case like this, we used to advise people to take a credit card out with their own bank, they are less likely to rely on scoring as they have access to your bank account. Use it as the only payment method for their petrol/shopping and pay it off in full each month. This then starts to build a credit history which in most circumstances can tip an application from decline to refer and tyen an actual person looks into the account applied for, the reason for the application if applicable and your credit file. They then make a decision themselves.

purple_tang

arcon5 wrote: »

With a perfect credit report and a history of borrowing, i'm betting your main bank would lend you the nominal sum of £500 (about 1.25% of your annual income).

My Check came back as 4/5 as did my wifes so I cannot see anything moody has gone on which was my main concern

pmduk

I'd take up fluffnutter's offer, before they raise their rates!