Excellent credit rating - declined Sainsbury's loan

Tixy

Mysteek wrote: »

So what you're saying AndyT678 is that loan companies assume that everyone is a liar and dishonest and trying to pull a fast one!

What he is saying is that a potential lender will do a risk assessment on the worse case scenario.
That is that you either didn't end up using the money to repay the cards, or that you would but then could run up the card debt again. So they assess whether they think you can afford repayments on both the new loan and on any existing debts.

The lenders know that many people who take out a loan for debt consolidation do end up in more debt overall 12months later to risk assess accordingly.

CHR15

Mysteek wrote: »

I just assumed that if sainsburys had passed my name to them they must be ok.

Poor assumption. It would have been a credit broker looking for your bank details.
They will promise the Earth so long as they get your bank details to take their fee.
If you got as far as giving your details out, check your bank account.

Nobody will be ringing you with a genuine loan offer.

Pixie5740

Mysteek wrote: »

TBH Clive I can't remember the name, it wasn't a name that I recognised and he said it very quickly. I didn't feel comfortable speaking about personal financial matters on the phone with someone I didn't know or didn't ask to call. I just assumed that if sainsburys had passed my name to them they must be ok. I only told them what the loan was for and the amount, I didn't tell him what my income was or information of any other outgoings but he was still able to offer me a secured loan.

I find it odd that Sainsburys Bank would just pass your contact details on to another company like that...it's quite concerning if that's how they managed to get hold of your details. You did the right thing not taking their offer any further.

AndyT678

Mysteek wrote: »

So what you're saying AndyT678 is that loan companies assume that everyone is a liar and dishonest and trying to pull a fast one!

No. They may be very honest and well intentioned but reality often works out differently to the way people plan it.

If someone has debt it is because they have spent more money than they have earned. Changing the terms of the debt changes nothing. Unless they change their lifestyle or their earnings the debt will continue to increase. And those changes are not easy to make and often only happen when the whole thing totally falls apart.

SjgGjb

Hi all,

Sainsbury's pass your details on to Freedom Finance. They also contacted me today offering me an unsecured loan. The rate however, was higher than the Nationwide loan I already have!?!?!?
Just out of interest, I am aware that your loan applications are documented on your credit report, but for how long? In addition, does it matter of they are visible on your report?
Many thanks

GingerBob_3

Avoid Sainsbury's. They refuse applications which most other reputable lenders would accept. Then they pass on your details to scab lenders who bombard you with calls, and then Sainsbury's themselves continue to flood you with junk mail offering "finance solutions".

If possible, don't give a genuine phone number when dealing with loan companies.

GingerBob_3

AndyT678 wrote: »

If someone has debt it is because they have spent more money than they have earned. Changing the terms of the debt changes nothing. Unless they change their lifestyle or their earnings the debt will continue to increase. And those changes are not easy to make and often only happen when the whole thing totally falls apart.

A generalisation of astronomical proportions. I have debt - 10s of thousands of pounds of it, as do most people. Are you telling me I need to change my lifestyle to stop it increasing? At the moment it's decreasing rather quickly.

Tixy

SjgGjb wrote: »

I am aware that your loan applications are documented on your credit report, but for how long? In addition, does it matter of they are visible on your report?

1 or 2 years depending on the credit reference agency.

As to whether it matters - well it is useful because it means you know who has searched your file.
In terms of other potential lenders being able to see you have made credit applications, it can impact on your ability to get credit in the short term. A single application is unlikely to make a difference, but a lot of applications in a short space of time can certainly cause an issue.