Rejected for tesco loan ('excellent credit rating')

PeteHi

I've just been rejected for a £12,500 loan and the reason given was 'according to experian you have too high a level of borrowing'.

So I've registered on experian and checked my account. I have a score of 999 and rated as 'excellent'.

I am a homeowner, earning over 30k with a perfectly clean credit history.

The only thing I can think could be an issue is I currently have two 0% credit cards. One with a debt of £2500 which I pay the minimum off via DD each month and another which I use for business fuel (paid off in full each month).

Why would they reject me?




Also, if I apply to another lender (sainsburys and M&S also offering a 6% loan) is this likely to be held against me, given I've just been rejected by Tesco?

thanks

19lottie82

the way a lender will work out how much to lend you is hf your current salary - your current debt, so if you are slightly over 2500 on your card, that might explain it.

also, have you any financial history with tesco? I'm guessing not. Try somewhere that you are in good standing with.

might be worth clearing the CC first tho, then re applying for the laon

PeteHi

19lottie82 wrote: »

the way a lender will work out how much to lend you is hf your current salary - your current debt, so if you are slightly over 2500 on your card, that might explain it.

also, have you any financial history with tesco? I'm guessing not. Try somewhere that you are in good standing with.

might be worth clearing the CC first tho, then re applying for the laon

Infact I didn't put in my clubcard number, as I didnt have it to hand.

Might try sainsburys then and put in my nectar card

Is that likely to make any difference?

CLAPTON

have you checked you credit files?

12,500 is pretty high borrowing for some-one only earning 30K

Charles_Montlake

Each time you apply the bank will do a credit check and they will see who else has done a check, if the number of checks is high it may count against you. Before applying I would suggest contacting them to make sure that what you want is within their guidelines

PeteHi

CLAPTON wrote: »

have you checked you credit files?

12,500 is pretty high borrowing for some-one only earning 30K

Ive checked me experian report, it said excellent? Its covered in green blobs, with no orange or red anywhere,

The money is for a car purchase, which work will be paying me £550pcm towards. Suppose I should have increased my salary by 5k or so when I filled in the application form to reflect this.

BugsyBrowne

PeteHi wrote: »

Ive checked me experian report, it said excellent? Its covered in green blobs, with no orange or red anywhere,

The money is for a car purchase, which work will be paying me £550pcm towards. Suppose I should have increased my salary by 5k or so when I filled in the application form to reflect this.

If experian have rated you excellent why not borrow off them then?

DCFC79

PeteHi wrote: »

Ive checked me experian report, it said excellent? Its covered in green blobs, with no orange or red anywhere,

The money is for a car purchase, which work will be paying me £550pcm towards. Suppose I should have increased my salary by 5k or so when I filled in the application form to reflect this.

It might be you were wanting a loan of 12.5k plus you have a debt of 2.5k on a CC so your total debt would be 15k which is half your salary.

Forget your score of 999 and the excellant rating as it means sod all,

opinions4u

PeteHi wrote: »

I've just been rejected for a £12,500 loan and the reason given was 'according to experian you have too high a level of borrowing'.

So I've registered on experian and checked my account. I have a score of 999 and rated as 'excellent'.

Assuming you've done it the free way, cancel it quick. If you want a random number generator spend your money on Premium Bonds.

I am a homeowner, earning over 30k with a perfectly clean credit history.

Well done.

The only thing I can think could be an issue is I currently have two 0% credit cards. One with a debt of £2500 which I pay the minimum off via DD each month

So you can't afford to pay more off your credit card, but you expect Tesco to believe you can afford the payments on a very large unsecured loan? Tip of the day - always pay more than the minimum payment, even if it's only £1 over. It looks better to most underwriting systems.

Why would they reject me?

Because they have a limited supply of cash to lend and can find better quality customers to lend to. No more complex than that.

PeteHi

opinions4u wrote: »

Well done.
.

Jealous are we?

As you will see from the responses, this information is relevant when applying for a loan.

opinions4u wrote: »

So you can't afford to pay more off your credit card, but you expect Tesco to believe you can afford the payments on a very large unsecured loan?
.

I can afford to pay off the cc if I so wished, but as it's a 0% card, why should I right now?

opinions4u wrote: »

Because they have a limited supply of cash to lend and can find better quality customers to lend to. No more complex than that.

Presumably Sainsbury's have a bigger pot of cash and aren't fussy about lending money to those of a lower quality, as I got it through them no problem :cool:

BugsyBrowne

PeteHi wrote: »

Jealous are we?

As you will see from the responses, this information is relevant when applying for a loan.



I can afford to pay off the cc if I so wished, but as it's a 0% card, why should I right now?



Presumably Sainsbury's have a bigger pot of cash and aren't fussy about lending money to those of a lower quality, as I got it through them no problem :cool:

Come on Pete you didn't get a loan off sainsburys did you be honest!!