Help please... on an Experian credit report

The_Boss

BartyBoy wrote: »

Thank you for your comment too.

Card 2 with 3700 limit will be closed once the balance is zero, again I am happy to close card 1 once it is settled. If I tell a lender this is what will happen, will I have a higher chance to obtain a loan?

No, it will not help. Could you select this option when you were asked why you want the loan? They usually have a dropdown box of options.

BartyBoy

The_Boss wrote: »

Could you select this option when you were asked why you want the loan? They usually have a dropdown box of options.

That is the other thing which frustrates me about my loan application. I chose the option of consolidation as the purpose of the loan for all applications. And when I phoned the Co-op Bank two weeks ago to quire about two odd letters I received from them, the girl who I spoke to didn't know what the loan was for. I suddenly realised it was a complete waste of time to apply for a loan with the Co-op Bank then.

The_Boss

BartyBoy wrote: »

That is the other thing which frustrates me about my loan application. I chose the option of consolidation as the purpose of the loan for all applications. And when I phoned the Co-op Bank two weeks ago to quire about two odd letters I received from them, the girl who I spoke to didn't know what the loan was for. I suddenly realised it was a complete waste of time to apply for a loan with the Co-op Bank then.

I've never understood why a lender has not provided a facility to supply the loan for the repayment purpose but then pay it directly only to cards only in your name, registered at your address and up to a zero balance. This would get around the problem of not being able to guarantee that funds were used to pay off existing debts.

BartyBoy

The_Boss wrote: »

I've never understood why a lender has not provided a facility to supply the loan for the repayment purpose but then pay it directly only to cards only in your name, registered at your address and up to a zero balance.

That does make me wonder too... When people apply for a 0% BT credit card, wouldn't they need to submit how much money they want to transfer to another card?

If so, there should have the same facility for people who try to pay off their credit cards with a loan.

BartyBoy

I was doing some studies on the internet last night about the credit report/file. I understand the theory about not to keep on re-applying a loan within a short period of time. But how many applications should I try to apply within a month? What should I do if I still fail to get a loan after 2 or 3 months?

The_Boss

BartyBoy wrote: »

I was doing some studies on the internet last night about the credit report/file. I understand the theory about not to keep on re-applying a loan within a short period of time. But how many applications should I try to apply within a month? What should I do if I still fail to get a loan after 2 or 3 months?

You have three now so I would leave it for maybe more than 2-3 months - perhaps up to 6.

As an immediate strategy, first of all aim to clear the overdraft. I suspect using this every month is causing the most damage and the interest is also no doubt relatively high. What is your available overdraft limit and how long have you been overdrawn?

BartyBoy

The_Boss wrote: »

What is your available overdraft limit and how long have you been overdrawn?

It's the Halifax Current Account, the limit is 2450, but I keep it under 2000 cos Halifax will charge me £2 interest a day. Unfortunately I use the overdraw every month... :embarasse

samtoby

I doubt you will get a loan from the profile. Good luck though.

ValHaller

BartyBoy wrote: »

That seems as the case too :T

And if so, shouldn't the lenders stop using Experian, Equifax or Noddle as an excuse to reject applications? I would rather to have a straightforward answer than an irrelevant excuse.

I suppose it is more a matter of your interpretation of the letter. As I understand it, they will not have rejected you on the say so of a CRA nor on the CRA 'credit score' - they will have rejected you on the basis of the recorded factual information supplied by the CRA.

As such it is surely to everyones' advantage that the rejecting lender names the CRA

BartyBoy wrote: »

That is the other thing which frustrates me about my loan application. I chose the option of consolidation as the purpose of the loan for all applications. And when I phoned the Co-op Bank two weeks ago to quire about two odd letters I received from them, the girl who I spoke to didn't know what the loan was for. I suddenly realised it was a complete waste of time to apply for a loan with the Co-op Bank then.

There is your problem. Consolidation is recognised as the bum end of the market. It is what people do when they are either desperate on on the road to becoming desperate.

In your position, I would not try again in the same way - I would be looking at applying for less to clear just 1 card and using a reason other than consolidation.

I would also be putting expenditure on the more lightly loaded card and paying it off the card which is nearly maxed out - because maxing out does not look good.

Experian_company_representative

That's right - only credit application searches can affect credit scores. Searches created by you checking your own report, asking for a quotation and having your identity checked don't count.

If I were you I'd go back to the original loan provider and press them for the principle reason for saying no. They have to flag up your credit report but it's only part of the information they look at. And even if it was your credit report they should be able to be more specific, such as high utilisation of existing credit facilities. From the score we've given you, which is only a guide but still indicative, it seems that your credit history is in pretty good shape.

James