Credit application mystery

Kingham_2

I was in a hole as I couldn't pay my salary from my (limited) company for the first time ever on Monday as a debtor failed to make a huge payment. The lack of salary left me in a personal crisis. However, it is quicker to apply for personal credit of some sort than for us to make an appointment to go into the bank and get a business loan. I am not used to getting much personal credit so took some advice from this site but it seems to have backfired and is probably causing my previously good credit rating to have gone down instantly!

I applied online that day for a personal bank loan, and passed the credit scoring, but when I called today to check the progress it seems that the loan was going to be turned down as it was for the wrong purchase reason - I kick myself as I haven't applied for one for decades so forgot what purchase reason is acceptable. I asked them to withdraw it.

Having done that I applied for an overdraft on my bank account. I never have had one and I've been with them about 9 years with no overdraft, no problems at all. But it was turned down and they wouldn't give me the reason...

Oh no! So I went through the credit card route and got turned down for one which I had apparently 90% chance of being accepted for. I already have one which I never miss a repayment on, but that is currently maxed out, and I tried to apply for this one as it is at a better rate and I only got my limit increased about 6 months ago on the other.

Then as a last resort I went to a Mutual Credit Union for a short term loan. Apparently anyone can get one of these. Not me though! £35K earnings and 6 years with same employer and no repayment defaults.

Apparently to even have applied to somewhere like this is a disaster for

I do not borrow from friends and family, and cannot of course get benefits. Meagre savings have gone out on rent for both me and as a loan to the business for its rent. So of course not only am I in a hole for the next three weeks, but I have also trashed my credit score today within the course of an hour.

I won't of course ask any more advice about the lack of readies, but any advice on the extent of the fallout from those failed applications and how I can sort it out?

Thanks!

MrSilk

Kingham wrote: »

Oh no! So I went through the credit card route and got turned down for one which I had apparently 90% chance of being accepted for. I already have one which I never miss a repayment on, but that is currently maxed out, and I tried to apply for this one as it is at a better rate and I only got my limit increased about 6 months ago on the other.

Whats the current balance? what payments are you making? Minimum or just over? how long has it been near to the maximum limit?

Kingham_2

Hi there

Thanks for your reply.

The balance is almost £1000, but usually hovers at half that (unfortunately a Christmas expense wipeout occurred over the last few weeks) I make either full or part repayments each month, entirely dependent on what I deem I have available on the day I repay (I steer clear of DDs so just pay via BACS). Long-term I know it is better to pay off in full each month, but I assumed it wouldn't have a big effect on any credit rating if I didn't.

1DayAAT

I advise getting a peek at your credit file with your own eyes - something there is clearly throwing up a red flag. You can get Noddle for free or try the free trial with Equifax or Experian, just make sure and cancel within the 30 day trial - I recently got mine with Equifax and it was worthwhile to see the more detailed data - and easy to cancel.

iAMaLONDONER

Kingham wrote: »

Hi there

Thanks for your reply.

The balance is almost £1000, but usually hovers at half that (unfortunately a Christmas expense wipeout occurred over the last few weeks) I make either full or part repayments each month, entirely dependent on what I deem I have available on the day I repay (I steer clear of DDs so just pay via BACS). Long-term I know it is better to pay off in full each month, but I assumed it wouldn't have a big effect on any credit rating if I didn't.

Did you sign up for Noddle to see your Credit report as another poster has advised?

Kingham_2

Thank you for all your replies. I will look at the credit file and take it from there.

Strangely enough, I got an email from the Mutual Credit Union a few days after the application saying my application had been accepted after all, so that is a small gap-bridger.

I'll post again if it there wasn't an anomaly on the credit file, just for the record...

Experian_company_representative

Best to space out your credit applications if you can.

James