Credit reference mystery!?

paulwoody86

Can anybody solve my credit problem regarding a loan...

3 years ago I wanted a loan to buy a car. As the advisor looked at his screen I was told that there would be a chance that the loan would be sent to head office for approval.

I was told to get my credit score/report as this would give him something to back up an appeal. My credit score came back as 999 and it showed that i had never missed any payment. Never had a property change. Nothing that gave the bank any reason to refuse my loan.

I continued and the loan was rejected. Head office wouldnt tell the advisor why (apparently theyre not allowed to). In the end my dad said that he would take out the loan with the bank and i would pay him via direct debit everymonth. I recieved a phone call a few months down the line to say I could now get the loan in my name (at a higher APR). I did this as I wanted to get my loan in my name.

Fast forward to now. Loan has been being paid off. No problems at all. However, with a wedding on the way and a new house to get ready to move in (Mortgage was applied for last year. Accepted instantly with another bank) I decided to ask the bank a little more money.

Same advisor who dealt with the first loan. He looked at my account. Guess what, something saying that the loan could get rejected and would be sent to head office for approval! Credit score once again ordered. Perfect, no missed payments. There were a few searches due to my mortgage etc last year but everything the same as last time. They will offer me the loan but at a higher APR so the bank can see something that makes me a risk?!?!?

The advisor couldnt believe i was in the same place as last time. He went through everything with me...

Have I ever missed a D/D payment? NO
Was my mortgage accepted without any conditions? YES
Does my house have any bad credit? NO
Do my parents have bad credit? NO

The only thing i have ever had a problm with was a gym membership. I had to pay £160 on the first day then £170 after 6months. I paid the first £160 but couldnt use the gym so i refused to pay the second payment after 6months. This was in 2009 but i have never heard anything back off them.

Wouldnt that show on my credit score if it was the problem? Maybe as I paid cash (but it was a contract) this is why it doesnt show?

Im now in a position where I either get the loan at a higher APR. Or i have to ask my dad again. But what happens in 5/10/20years...will this be never ending??

Sorry for the long winded post. Just trying to get some detail in

Thanks in adavance

happy_bunny_2

Sometimes banks flag you as no further borrowing, no matter what's on your report.

You checked all 3 CRAs? Some don't report to all 3 and some banks only search 1 or 2.

If all clean, find another bank.

Paul_01

Yep, as per above, best to order your credit reports from the other 2 CRA's just in case.

My impression is that as your loan has been accepted, albeit at a higher APR, there is probably little wrong with your credit profile and more likely to be the banks lending policy. Put simply, due to the economic climate lenders are making lending criteria stricter - this can take the form of an increase in rejections, but can also mean that those people that have been accepted may have higher APR's than would have been the case in the past.

The other alternative would be to approach another lender and see what they offer you.