Wonga affecting me getting a re morgage??

simon2010

So what your saying the Bugsy is that I recently (last year) had a default removed from my account after 6 years in the wilderness. Did some PDL'ing, and could possible have to wait another 6 years.......

Oh the joys of trying to obtain credit. The whole system needs a very urgent overview. Companies should be FORCED to explain why you have been turned down for credit, that way it will help the consumer learn how to improve their credit rating. You should not be punished for going around looking for 3 or four loans at the same time, you don't when you go and look for a new car!!!! If one company approves your loan, and you accept it, they should be an immediate update on your credit file that this has taken place, to stop other lenders making their decision. THIS WOULD NOT BE difficult to do in the modern world, but hey ho will plod on with the useless..............

opinions4u

simon2010 wrote: »

So what your saying the Bugsy is that I recently (last year) had a default removed from my account after 6 years in the wilderness. Did some PDL'ing, and could possible have to wait another 6 years.......

No. But multiple recent credit searches on a credit file or payday loans on bank statements rightly raise concerns if recent.

Oh the joys of trying to obtain credit. The whole system needs a very urgent overview. Companies should be FORCED to explain why you have been turned down for credit, that way it will help the consumer learn how to improve their credit rating.

Flawed thinking. It would teach people how to put fraudulent applications in, increase bad debt and make credit more expensive for honest borrowers.

You should not be punished for going around looking for 3 or four loans at the same time, you don't when you go and look for a new car!!!! If one company approves your loan, and you accept it, they should be an immediate update on your credit file that this has taken place, to stop other lenders making their decision. THIS WOULD NOT BE difficult to do in the modern world, but hey ho will plod on with the useless..............

So you would stop people trying to get a cheaper loan deal if they found one? Thanks a lot.

simon2010

Thanks opinions, some useful insight.

Just frustrated by a useless system, IMO.

jason1231972

simon2010 wrote: »

Companies should be FORCED to explain why you have been turned down for credit

Whilst I agree with the gist of this, it would cost time and money for lenders to do this. Albeit a relatively small amount of time and money, but still. Smaller lending outfits could potentially be driven out of business or forced to jack their rates up if staff time (and thus company money) was spent on informing each and every declined customer on an individual basis why they've been declined. The larger lenders (banks, etc.) could absorb these costs, but would also spend time and money in the same way, and would also likely jack their rates up a little.

that way it will help the consumer learn how to improve their credit rating.

Again, nice idea that I agree with, but most lenders just can't offer personalised advice like this. Not without recouping the costs (via interest rates). Perhaps all lenders should display detailed general information to customers, though, rather than the usual "subject to status" garb. Many people assume their credit history is fine (and that's often true), but are shocked and disappointed when refusal occurs. If lenders spelt out in general terms what they were looking for (i.e. seasoned borrowers with a proven history, and a proven ability to budget), dud applications would probably decline. Of course, anyone should be welcome to apply, but should understand that acceptance for credit can be hit and miss, and is in no way guaranteed (ever, for anybody).

should not be punished for going around looking for 3 or four loans at the same time, you don't when you go and look for a new car!!!! If one company approves your loan, and you accept it, they should be an immediate update on your credit file that this has taken place, to stop other lenders making their decision.

Agreed, good idea, but unlikely to come into effect (again, time + effort = money!!). In general terms, the more 'personal' a lending service is, the higher the cost. Office space costs money, face-to-face interaction costs money and (at the lower end of the borrowing scale) collections agents cost money to employ. Lenders offering good rates need to have a strong customer base that don't need frequent personal contact, and can be easily vetted electronically rather than personally.

jonesMUFCforever

OP go to a mortgage broker - explain in adavance about the Wonga loans and see what they can do for you.
Just because your existing lender says no does not mean everyone will.

simon2010

Thanks Jason

Glad there is some agreement yourself and you have explained yourself very well.

my further opinions on this are though:
- That lenders know the true reason why they turn your down. Otherwise they would not turn you down, an automated answer is just unacceptable and I prey for the day when bankers go back to listening to a customers circumstances (ok it won't happen). Just saying you dont meet our lending our criteria is unacceptable and imo offensive. Why don't I? I am not looking for a full investigation into the matter, just a few more lines than the standard ball e.g. we cannot lend to you are this time because you have two late payments in the last 12 months, or you have been using PDL companies too much. It is a very frustrating system and you can see time and time again that people on here are soooo confused with the whole process. There really needs to be some light shed on all of it, a clearer system for all. The finance companies should be held responsible for this - after all they are the ones offering the money and possible 85% of us don't understand it other than the 'bank managers' on here who regularly dish out there wise wisdom which is always totally unhelpful and opinionated because they have never borrowed a bean and expect everyone on here to be a saint, the truth is 'bank managers' (I don't mean real bank managers), that we really need to sit down with specialist who can actually listen to circumstance, but as with live in a world based around quick decision making and money making from those who can, those who can't seem to suffer immensely.
I don't see how small businesses can be affected by these costs Jason? Surely a clearer system is a much better way forward. 'Hey people, we are sane, we will listen to you, and we will explain why we don't want to give you credit this time round. It is almost pathetic that so called people within the finance world cannot recognise this and see that some of what I am saying makes sense. There is almost a business for this e.g. trained specialists that will listen and spend time with the customer and put the case forward to the high street (yes you would pay for this), but if it worked and banks actually were prepared to listen then they might actually make a bit more cash and we might not have a banking crisis.

Jason, I would be very interested to know how many hours and money are wasted by the finance sector putting customers on the declined waiting line (phone) to argue their wasted breath in trying to put there point across for being accepted when the real truth of the matter is that whatever they say it will be a complete waste of time..........

I am not asking that credit should be a guarantee but if you have the salary and the explanation and how YOU propose the credit is to be repaid then there should be a case to answer.

And finally Jason, and by now I am presuming that you must work in the finance sector (apologies if not), I understand what you are saying about office space and costs etc but what about real people ? I would be MORE than happy to pay say a £50 referall fee if it actually meant I might get somewhere, plus the banks would generate more income, and yes perhaps you could still be refused.

And finally my last point, why the hell cannot ones credit file be updated immediately??? Prevent fraud, cost would not come into it that much, when I click send on here it goes immediately. The real finance world should do the same. It is almost laughable that we all don't have LIVE credit files.

Cheers Jason

Rant over.

Now I think some of the above makes sense. Can anyone lend me some campaign money lol

simon2010

Obviously I pray, not prey.......

Always read before posting.
x

simon2010

jonesMUFCforever wrote: »

OP go to a mortgage broker - explain in adavance about the Wonga loans and see what they can do for you.
Just because your existing lender says no does not mean everyone will.

No but any decent company WILL turn him down.

Jenny0050

Hello...

I have had a similar experience- I applied for a bank loan with they Halifax- they looked back through my transactions and when they saw I had been using payday loan companies they turned down my application. They actually said I had a good credit record but as I was using such companies it questions my ability to repay if they gave me a loan. They said similar to me- if I can show them I can go 3 to 6 months without using a payday loan company then they will reconsider my loan application.

simon2010

If you have such an amazing credit file. Why are you using pdl's?