Credit Score Question - Please help

sruffs

simeyb wrote: »

You may have been declined simply on affordability. I don't know your circumstances of course, but if the credit report, although suggesting you've paid everything on time, except for the catalogue blip, also says you're maxed out on your cards, or have several accounts all with balances on them, then the lender may have decided that to lend you more would not be responsible (there are responsible lenders out there!) - remember too that the lender will have considered all the information from your application too, not just the credit report, and decided that due perhaps to your income level, or purpose of loan, that it fell outside the risk criteria - esp if its a sensitive to risk lender like Nationwide for example who expect you to be Jesus and heavenly!

I only have one credit card which currently has no balance, I have a mobile phone contract and a couple of catalogues that I use intermittently. I have a joint mortgage and bank account. The lender I went to was my bank who I have been with for nearly 25 years. The application was done online with very few questions asked. My circumstances have not changed (except the catalogue blip) since I last took out a loan with them 2 years ago. I'm struggling to see what else they could have looked at.

sruffs

The_Boss wrote: »

What is your salary?
How long have you been with your current employer?
How much did you apply for in the loan?
What is the combined credit limit on all your cards compared to credit currently used?

Note that the first three questions would not have fed into the Equifax score as they do not have this data.

My salary is around £47k, the only debt I have in my name is my mortgage and my approved overdraft. The loan I applied for was for £9k

sruffs

The other thing I should mention is that the bank said the problem may be with my husband. I also checked his credit score / report and there was nothing untoward. The credit score said excellent and the report said he was a good candidate for credit.

mikemessa

Nationwide currently do a soft search on your report to give you an indication whether you are likely to be approved. However note that if they offer you a 24.5% APR you will get declined as thats their highest rate of interest they offer. Anything below that you have a chance if you are looking for a loan. If you proceed with the quote, they will do a hard search. But the quote will be the interest rate they actually offer you

The_Boss

sruffs wrote: »

My salary is around £47k, the only debt I have in my name is my mortgage and my approved overdraft. The loan I applied for was for £9k

That should be well within the limits. So it seems that it is the data on your report (the missed payments) that are causing the issue.

Who is your mortgage and current account with? Might be worth applying to that lender although they could offer you a worse rate than the one advertised.

I don't think the payments will take 6 years to drop off. If you close (settle) this account then that would bebthe case but I believe CRAs only report on the last 3 years of account data. As a general rule, the longer that passes then the impact will lessen assuming all accounts are up to date.

If you can repay the £9k in a year it might be worth applying for an MBNA card. They tend to provide high credit limits and you can transfer to your current account at the promotional rate. Credit cards tend to be easier to be accepted for in my experience too.

sruffs

The_Boss wrote: »

That should be well within the limits. So it seems that it is the data on your report (the missed payments) that are causing the issue.

Who is your mortgage and current account with? Might be worth applying to that lender although they could offer you a worse rate than the one advertised.

I don't think the payments will take 6 years to drop off. If you close (settle) this account then that would bebthe case but I believe CRAs only report on the last 3 years of account data. As a general rule, the longer that passes then the impact will lessen assuming all accounts are up to date.

If you can repay the £9k in a year it might be worth applying for an MBNA card. They tend to provide high credit limits and you can transfer to your current account at the promotional rate. Credit cards tend to be easier to be accepted for in my experience too.

I actually omitted an important fact. I currently have a loan with my bank with a balance of around £4k. I wanted to add the £9k and extend the period which is something they readily offer. I can't see how this would have made much difference though. I might try the credit card option, that is if they give me a card.
Thanks for your help and suggestions.

sruffs

mikemessa wrote: »

Nationwide currently do a soft search on your report to give you an indication whether you are likely to be approved. However note that if they offer you a 24.5% APR you will get declined as thats their highest rate of interest they offer. Anything below that you have a chance if you are looking for a loan. If you proceed with the quote, they will do a hard search. But the quote will be the interest rate they actually offer you

Thanks, are Nationwide the only lender who do this?