Advice about Loan Settlement and New Loan Application

MonkeyBoyMark

Hi,

Im new here, so I apologise now if Im not up to speed on etiquettes and the like - Feel free to point out my mistakes and I will change to suit!

Im after a little advice about something that has worried me today. Just under a week ago I settled off a loan I had - balance was just less than £3k. This was from cash I had. The loan had been with Sainsburys.

I have been looking at getting a new loan for a little while, as I want to do a couple of things at home and would like a new car. The loan I chose to go with was once again Sainsburys - they have been good to me in the past and everything was quick and easy.

For those that will say, as did the lady on the phone, why didnt you just get a new loan with us and we'd contra it - well (this is by my understanding so maybe wrong) the 54 days interest charged for early settlement would be rolled over and interest charged upon it - a cost I thought I could dodge by paying up and applying for a new loan.

I applied for a new loan this evening which was declined. I have never missed a payment on anything. I dont have any loans apart from the one I just settled. I have a mortgage which I have never missed a payment on, I have a credit card which is cleared to £0 each month by direct debit and used for small purchases online (balance never really exceeds £200.)

Called sainsburys and its because my old loan is not yet closed and may stay marked as open on my credit file for a month or so as they dont update that often - so responsible lending kicked in and a new loan was denied.

I now have to go through appeal etc - just worried if this will effect my scoring and all those sorts of things and ultimately the decision following the appeal - ie if they approve will they then have reason to charge me a higher rate due to a previous declined result, or does the appeal return me to the position prior to the application being made.

Apologies if this is so long winded!

Many thanks

Mark

Tixy

Hi

The appeal is still part of the original application. If they accept you the will determine the APR at that point.

If you are still declined then a single loan application on your file is unlikely to make a big difference. If you are then thinking of applying elsewhere then do check your original loan is showing as settled on your credit reports first.