Why wont anybody lend....desperate for advice

cameron1982

My partner has spent the last 6 years building his credit back up from nothing after settling an IVA which no longer shows in his credit file.

Both equifax and experian credit score him as good to almost excellent (equifax is 501 out of 600) and experian is 898 out of 900). He is in the electoral register.

He has never had any CCJ's. There is one bad account still showing on equifax that was settled back in 2007...6 years ago!!!!! And it shows as being settled back in 2007.

Since then, with the exception of one late payment to next back in 2010, ALL of his accounts are up to date and green. They have all been paid on time and in full every month for the last 6 years.

He has spoken to both equifax and experian who state they can see nothing on his credit files that should prevent him getting credit. In fact they say his credit file makes him a good candidate for credit.

But nobody will lend to him. Credit card or loan. And he doesn't have loads of outstanding debts.

He has not applied to anyone in 6 months. Instead he has worked hard at paying off things and reducing his current debts, which he has done and this has been reflected in his credit scores.

Currently there is £200 on one credit card with a limit of £1000
There is £2000 on a credit card with a £3000 limit ( always pay more than the minimum)
There is £900 on a next account with a £5000 limit
And he has approx £800 left outstanding on a loan he borrowed with santander 2 years ago.This loan finishes in 3 months.
And his name is on a secured loan for my house which is £28000

He earns £40,000 per year as a police officer which he has been for 10 years.

My husband wants to re train as an electrician and therefore wanted to take out a small loan to pay for his fees and tools etc.
He called up his bank today whom he has banked with for 10 tens years and they said they wont even run a loan application as he is not suitable for credit??????

What on earth is causing this?

[Deleted User]

he has a £10,000 line of credit plus half a 28k loan,thats why he cant get credit
and training as spark when he earns 40k as a copper?

DCFC79

cameron1982 wrote: »

He has spoken to both equifax and experian who state they can see nothing on his credit files that should prevent him getting credit. In fact they say his credit file makes him a good candidate for credit.

But nobody will lend to him. Credit card or loan. And he doesn't have loads of outstanding debts.


Currently there is £200 on one credit card with a limit of £1000
There is £2000 on a credit card with a £3000 limit ( always pay more than the minimum)
There is £900 on a next account with a £5000 limit
And he has approx £800 left outstanding on a loan he borrowed with santander 2 years ago.This loan finishes in 3 months.
And his name is on a secured loan for my house which is £28000

He earns £40,000 per year as a police officer which he has been for 10 years.

My husband wants to re train as an electrician and therefore wanted to take out a small loan to pay for his fees and tools etc.
He called up his bank today whom he has banked with for 10 tens years and they said they wont even run a loan application as he is not suitable for credit??????

What on earth is causing this?

Forget the numbers Experian/ Equifax shows as its just a number plus Experian and Equifax aren't lenders.

By my calculations I make it to be:

So 8k available credit
owes 3.9 on the cards/ loan / Next account

It all depends how much he is wanting to borrow ?

Has he spoken to his own bank ?

Looks like woodbine beat me to it so not much point in repeating what has been said.

gb12345

cameron1982 wrote: »

But nobody will lend to him. Credit card or loan. And he doesn't have loads of outstanding debts.

And they are unlikely to in the near future now that his credit history is full of loan and card applications.

There is no point applying for anything else in the next 6 months, he will just be making matters worse.

paulmcerlean

Does anyone read posts on here to help? I think many read posts to find something to criticise someone on.

She said he has asked and been refused by his own bank yet the OP is asked has she tried his bank.

She has said he hasn't applied for anything in 6 months and the next witty arsed reply comes in with he is unlikely to get any credit any time soon as he has applied for so much.

Urrrrgh.

imoneyop

paulmcerlean wrote: »

Does anyone read posts on here to help? I think many read posts to find something to criticise someone on.

She said he has asked and been refused by his own bank yet the OP is asked has she tried his bank.

She has said he hasn't applied for anything in 6 months and the next witty arsed reply comes in with he is unlikely to get any credit any time soon as he has applied for so much.

Urrrrgh.

Wow, some great advice for the OP there - I'm sure she will find it really helpful (NOT).

Urrrgh wannabe mods

gb12345

paulmcerlean wrote: »

She has said he hasn't applied for anything in 6 months and the next witty arsed reply comes in with he is unlikely to get any credit any time soon as he has applied for so much.

For your information Mr Smug - I missed the bit about not applying for any credit in the last 6 months as I was skim reading due to doing other things at the same time.

However - the reply was not "witty arsed" as it is still relevant to the OP in future. Based on her comment that "nobody will lend to him" it sounds like he mass applied 6 months ago - which will have hammered his credit score. Now they will know not to do so in future.

I will try and do better with my posts in future - after all it's not like I am giving my time for free to help people is it. Or perhaps I'll PM you with all my intended replies in future so that you can approve them for me.

DCFC79

paulmcerlean wrote: »

Does anyone read posts on here to help? I think many read posts to find something to criticise someone on.

She said he has asked and been refused by his own bank yet the OP is asked has she tried his bank.

She has said he hasn't applied for anything in 6 months and the next witty arsed reply comes in with he is unlikely to get any credit any time soon as he has applied for so much.

Urrrrgh.

Yes I did read the post and I got a tired near the end so I do apologise, ive been up since 5am so Im going to be slightly tired.

NeverEnough

OP, it is a shame that requests for advice often end up with stupid comments or silly responses from people who didn't bother to read your initial post properly, but that's what large public forums are like

There are helpful people inbetween though, so just ignore the Keyboard Warriors.

Generally, the banks and finance companies loan up to 50% of income, so that would be up to £20K. The Secured Loan will probably not be all that relevant as it is secured on the property and should not count; nor should HP agreements.

The default from 2007 should come off his file this year in 2013 and that may help considerably - even though it is 6 years old, it is likely it is causing a problem still.

Can he not pay most of the credit card debt off over the next few months and then use that line of credit to fund his Course? That would provide £4K of credit.

Sometimes there is simply no sense whatsoever in the supposed "lending policies" of these institutions - I am aware of someone who has never missed a payment on anything, earns a high salary and yet is viewed as a "poor" credit risk despite never having any defaults or missed payments over more than 15 years on mortgage, credit cards, loans etc. So who knows what they want!

The level of inconsistency in lending is pretty dreadful - you hear of people who have absolutely no hope of repaying loans etc, getting credit, yet people who have good incomes and payment histories srtuggle. That's the mysterious world of credit risk assessment for you - no lender has to loan anyone anything.

Best thing for partner to do is to keep paying down the debt as fast as he can and use his available credit lines to fund the course materials.

Once that 2007 default falls off it may be worth trying again.

tell_it_how_it_is

As mentioned, there remains a few outstanding amounts associated with him there.

Would the better course of action perhaps be to get his house in order while he's earning good money, and postpone what is in essence a gamble - at least initially - until he has a bit of a safety net money wise to fall back on if need be?

Just thinking that if he's struggling now, it could get pretty dire if things don't get off to a flying start.

DevCoder

The secured loan and HP is taken into consideration in the affordability scoring, no use saying oh well it's secured against something so we can always claim that back. Credit scoring is about ensuring that it doesn't come to the point of defaulting.

The people you mention who never miss a payment etc don't have a "poor credit risk". They have a poor RoI / revenue return. They will make so little revenue to the bank that they don't meet the criteria. Banks prefer a small amount of risk as this lets them see a higher return (whether it be through a higher APR on the loan or realisation of some fees).

The bank balances the poor return against the risky possible no return (in the case of bankruptcy etc) and tend to target the lower to middle ground.

And yes, the existing debt should be lowered, I also looked (admittedly a long time ago) at being an electrician and I have to question the judgement of going that way now, It's an ultra competitive market and the consumer (also feeling the bite of the economy) will seek several quotes and then play them off against each other, there is a lot of dead time in quoting, going to premises etc.
Also enrolling on a 5 Week course is a big disadvantage in the trade, they (5WW's, 5 week wonders) cant compare with the time served as there is more to being an electrician than just the regs and calculations.

My last paragraph is just my own personal opinion so ignore it if it doesn't fit with your situation.