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Loan Credit Check criteria

Hello!

Newbie here! I have made sure to scan through the forum before start an unnecessary thread - which I may have done anyway, so apologies in advance!

I recently checked my credit score and found it to be 'above average', which was a relief! However upon applying for a personal loan with my current bank to reduce interest and pay off credit card debt I found I was declined. Very frustrating as the bank itself seemed more than happy to lend, but the the credit check ruined that. Any idea how situations like this come about? I am baffled as I have never had CCJs, missed payments, etc.

I am sure I am not the only person to have found themselves in such a position and I am just wondering if there is anything I can do to improve my situation or at least find out why this happened?

Any advice greatly appreciated...

LB

Comments

  • forgotmyname
    forgotmyname Posts: 33,073 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Are you on the electoral roll? How long for?

    The credit agency score is meaningless the lenders dont use it.

    What is your income and how much was the loan for?
    Censorship Reigns Supreme in Troll City...

  • iolanthe07
    iolanthe07 Posts: 5,493 Forumite
    Don't take it personally. The bank may think you're already over extended, your debt to income ratio does not fit their parameters, or that you don't meet their lending criteria at the moment. The bank may give you an explanation, but they don't have to. You could try applying for a smaller amount to borrow, but don't make too many applications, as this could affect your chances.
    I used to think that good grammar is important, but now I know that good wine is importanter.
  • 27col
    27col Posts: 6,554 Forumite
    Your situation is an example of what has been said on here many times. Your so-called "credit score" is completely meaningless. The lenders do not see it.
    I can afford anything that I want.
    Just so long as I don't want much.
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