refused loan poor credit rating!!!!!!

dprovan

Hi

I have applied for a loan of £6500 over 30 months to buy a caravan and clear existing credit card balance. I firstly applied through northern rock and they turned it down. In the letter they sent they had my name wrong, so I assumed the problem lay there. I then applied through alliance and leicester. I gets a phone call today from some broker saying alliance and leicester had refused it and passed it to them, they then passed me on to 'black horse' who were considering lending me the money......Im still waiting to hear. However I was amazed, I have never even considered whether Id be refused.

We earn a combined salary of £72k.
my mortgage is £1400 per month £245000 loan on house of £400000
I have two credit cards total owed is £7000 (to be cleared part loan part saving)
I have two loans total monthly is £420 although £160 part of this ends in 9 months


I have never missed a payment on anything. However my credit score is 695 out of 100 and rated poor. The only thing I can see is we moved house 2 months ago and are not on the electorate register. Im not sure from reading the report but perhaps i have credit cards open and have had a number of applications recently for one of the loans and new credit card.

Would the elecotrate play a huge part in scoring? Or are my overheads a problem? Does anyone know this black horse, I assume their APR will be higher should I go with them or sort electorate out first?

thanks

ellat257

I recently signed a loan with Blackhorse. The APR is slightly higher but with my credit rating I wasn't bothered because I needed a new car. Blackhorse were fine with me but did go through my credit report with me which took a while!

I suspect your problem is not being on the electoral roll since this was one of the first things most lenders check. Also lots of credit searches show up which doesn't help. Get a credit report and check it for yourself but be warned it can be messy if there are mistakes.

Check out the credit ratings article that may be helpful.

dprovan

sorry i wasn't very clear,

I got a credit rating however it showed nothing I didn't already know, and what Ive listed here... Northing looked out of place, unfortunately it tells your score but doesn't explain why it was so low.

dprovan

any other views as to why my rating is so low

mikeyboy

Does anyone know which Credit Ref Agency Blackhorse use?

tom188

the score you have been quoted is completely meaningless, these scores are merely cynical money generating products for the CRAs, preying on the insecure.
they are not used by the lenders themselves.

dprovan

I am becoming more and more confused, I have been turned down by alliance and leicester and northern rock, I have been offered a loan by black horse with 12% I got them down from 18%.

I have never missed a payment for anything. I don't think my outgoings are particularly high considering my income. I am scared to apply elsewhere because if im turned down again its going to get worse.

Does not being registered on voting register make that much of a difference?

I am ge3tting that sorted now.

missk_ensington

It isn't really any of my business, but in my personal and honest opinion taking out more credit is a very bad money-managing idea. You already have a considerable level of debt (there are people on debt-free-wannabe who are literally going insane over less debt than you've got!) and I'm concerned that should you a) take on too much or b) have a change in circumstances such as having (more) children, losing income, getting a tax bill.... anything unforseen.... you could easily snowball down a slippery slope.

I really dont think buying a caravan is a responsible reason for taking on debt. Maybe it is our debt culture that is to blame but how about paying off what loans you already owe before taking on yet more debt. From what I can see you have a large mortgage, two loans and two credit cards.

The reason I am so concerned is that my ex, as many of you know, became insolvent with £90,000+ of personal debt. He started off with a credit card, and another, a loan to get a fitted kitchen, a loan for a conservatory...a loan for a caravan.... a motorbike and car on HP........... he was managing alright until work dried up (he's a tiler) and he split with his missus thus losing the second income.

I believe he's since declared bankruptcy and lost everyhting. If you end up going the same way, no one will have any sympathy for you when youve got in that situation by buying luxuries that you can't afford.

inmypocketnottheirs

Blackhorse are LLoyds TSB.