Loan Declined but offered Best Rate!

Ju&Mel

Wondering if anyone could give us a clue as to why?

We chose to apply for a Nationwide loan as it does a 'Soft Search' first

We wanted the loan to mostly pay off an NRAM loan that is 13.69% (our only personal loan) and a slight bit left to get a small 2nd car for work
The information we supplied was correct and accurate and our credit ratings excellent

The soft search offered us the Loan at their Headline rate of 6.2% therefore we were shocked when we clicked apply and it said Declined
Had the rate offered been higher maybe we wouldn't be as shocked, but annoyed now that we will have a big fat DECLINE on our credit file

SnowTiger

Ju&Mel wrote: »

Wondering if anyone could give us a clue as to why?

We chose to apply for a Nationwide loan as it does a 'Soft Search' first

We wanted the loan to mostly pay off an NRAM loan that is 13.69% (our only personal loan) and a slight bit left to get a small 2nd car for work
The information we supplied was correct and accurate and our credit ratings excellent

The soft search offered us the Loan at their Headline rate of 6.2% therefore we were shocked when we clicked apply and it said Declined
Had the rate offered been higher maybe we wouldn't be as shocked, but annoyed now that we will have a big fat DECLINE on our credit file

Presumably the full search showed up something that the soft search didn't?

Have you had a look at your credit reports to see what information they contain?

Who told you your credit rating is excellent? And based on that opinion, are they willing to lend you money?

Apples2

They don't see a decline anyway, just a search.

Ju&Mel

SnowTiger wrote: »

Presumably the full search showed up something that the soft search didn't?

Have you had a look at your credit reports to see what information they contain?

Who told you your credit rating is excellent? And based on that opinion, are they willing to lend you money?

Our Experian credit reports show Excellent

SnowTiger

Ju&Mel wrote: »

Our Experian credit reports show Excellent

According to this page Nationwide use Experian and Equifax. A comment at the bottom of the page: "It seems Nationwide also use Equifax Quote".

I don't know for sure. Can't believe everything you read on the Interweb.

But "excellent" is just Experian's opinion based on the (limited) information they hold. I doubt it has any baring on what Nationwide thinks.

Ju&Mel

We will phone NW Tuesday to see if we can get any more info

goaroundnow

I think you'll find that it was declined on one of 2 things:

1) Affordability - in this case the decline screen will make some reference to "ensuring we are responsible lenders and customers can afford what they borrow."

2) Defaults - some say these do not show up on the soft-search but I am not totally sure about this. In this case the screen would say something like "we found something on your credit file which means we cannot offer you the loan..."

My money would be on (1) which you can confirm by remembering the decline message you got. The other decline message, for reference, is something like "you do not currently meet our lending criteria."

I think it's crazy that affordability isn't fully checked with the soft-search but that's how they have their system set up.

You can, of course, appeal.

Hope that helps.