Credit is confusing :S

Lindopski

I have just applied for a £5000 car loan from Nat West and a £500 credit arrangement for the new Ipad which is arranged through the apple store and Barclays.

I was accepted straight away for the £5000 loan but rejected for the £500 credit agreement by Barclays - citing experian etc..

I am confused as to why I would be accepted for one and not for the other especially if I am good for 5k but not 500 pounds.

I have decided not to pursue the car loan after all and I am just going to stretch out my old banger until it does indeed go bang.
The Ipad would be handy for my band as I have bought quite a lot of Music creation Apps from the Apple store and the Ipad has a bigger screen than my old Iphone so would be quite useful.

I guess Ill just have to save up - still find it a bit odd though.

redpete

Different lenders use different criteria, lenders apply different criteria depending on the type of loan, different lenders use information from different credit rating companies who might have different information on you, maybe the information about the £5k loan was visible to the lender considering your £500 loan and this tipped the balance, maybe the £500 application was received on a Tuesday and this is a bad day to get approved.

Lindopski

I have applied online for one of these statutory credit report things to have a look at.
the only bad thing I can think of is I missed a payment to the catalogue about two months back by a couple of days - though considering i'm supposed to be paying about £26 a month to them and in the three months I have had the catalogue I have paid them over £300 back and almost killed off the bill you would have thought that it may go for me in some way.
I have heard though that paying things off quickly is frowned upon in the land of credit score.
Its an odd world this is

I never missed a payment on my old loan so maybe thats why Nat-West like me still lol.

non the less, Im probably better off with no ipad and no loan.
Ill just have to whip out a real synth from the spare room lol.

nomoneytoday

Maybe the car loan has a car they can sell if you don't make the payments, whereas a 2nd hand ipad would be harder to sell and cover the costs?

Tixy

Missed payments are a negative, if they appear on your file - regardless of how much you pay before or afterwards.

Was the main loan from your own bank? if so they will often give credit when other lenders won't, as they know more about you. They also have the ability to offset funds from your other accounts if you miss payments.

But quite likely the issue could be that when you applied for the ipad finance that they could see you'd very recently applied for the loan - and so were concerned about the affordability of both items, not just the £500 finance.

bbfc

Apple/Barclays Finance Loans have very strict requirements. I was declined for one of these and the woman on the phone actually said that they are very strict and picky at who they choose.

chillimaid

How about an Argos Card? They maybe more lenient with their credit scoring. Plus they have their buy now pay later schemes. You could save every month and pay it up and no interest:j

RoxRoxBling

Lindopski wrote: »

I am just going to stretch out my old banger until it does indeed go bang.

Ditto to the quote! Loves it!

That's the thing tho, different companies use different ways to decide. It may be that because you applied for two at once they saw you 'deperate' for money

rartherinv

No one will be able to tell you a certified correct answer so it's all just our opinions and best guesses.

My personal speculation is that you possibly failed the second application due to fall in credit score between the two applications.

When you applied for the loan you had good history and no previous searches... :A

When you applied for the ipad you had good history but also a search indicating to the lender that you are trying to borrow £5000 elsewhere at the same time.

If I was a prime lender I would think it a bit worrying that someone who is applying to me for £500 is also applying elsewhere for £5000 at the same time. Lenders search different agencies so 2 searches showing in a day or two on one agency can mean the applicant is possibly trying to borrow with a handful of lenders at the same time.

I know the standard advise is that applicants can usually get away with 3-5 searches before it starts to affect the scoring, but you never know... it's up to the lender how they score you and trying to borrow 10x as much elsewhere might open up the financial stress or fraud can of worms for the lender to consider.

pvt

Lindopski,

Why not hold off on doing anything for a couple of months, and save the money you would have been paying on the 2 loans you talked about. Then you'll have enough saved to pay for the iPad without you needing to put yourself in hock at all!