Nationwide lending criteria

Nykad21

Hi,

I've just been rejected for a £1000 extension to my current nationwide loan. I received a letter a few weeks ago that offered me a loan for £12500 at 5.7% apr. I didn't need that much just the extension to my current £7000 loan. This would be the second extension to my loan as I added another £1000 about 6 months ago.

When I initially rang up, I was told at first that I there was a marker on my file and that I was unlikely to get the loan. I went through with the application anyway and ultimately rejected and told that I didn't meet the internal nationwide lending criteria.

I was then advised to check my credit history on call credits website, which I did but I am currently on track with all of my payments. I have never missed a payment with the only exception being an argos card with a £300 debit on, which I settled in 3 months under the buy now pay 6 months later scheme. I am also in full time employment and am a regular customer with my credit card, mortgage and current account all with them.

I then asked for the loan application to be appealed as I simply couldn't understand why it had been rejected. They got back to me today and told me the same thing. I complained but they still wouldn't tell me why exactly why I had been rejected just that they're department couldn't tell me as it just says that I fell below the criteria on the system. When I asked who could tell me the exact reason that I was rejected, they told me that no one could.

I'm not happy about this as from my perspective I have been rejected for no good reason. I accept that this is a really minor issue but I'm very frustrated about it as I don't know if it's something that I've done wrong, or my spending habits are bad or something that I don't have any control over. I simply would like to know the exact reason as this just doesn't make sense to me and I can't understand why they won't tell me.

If anyone can shed a bit of light on nationwide's criteria or why I might have been rejected then I would be very grateful.

Thanks

R_P_W

They don't have to give you a reason. If they don't want to lend to you then they don't have to.

Cade_Foster

I am not saying you are a bad risk, butthey may see someone e who is asking for a couple of extensions to their loan in the space of a year may not be struggling and likely to pay it back.

DCFC79

No 1 can tell you what the lending criteria is for Nationwide as no one knows, only those who know will be those at NW I guess or the system used to determine if your a risk or not.

It would defeat the object if everyone knew the criteria for each lender.

[Deleted User]

Nykad21 wrote: »

Hi,

I simply would like to know the exact reason as this just doesn't make sense to me and I can't understand why they won't tell me.

They won't tell you for a) commerical confidentiality and b) they would rather applicants didn't 'improve' the details they give on their applications to get through.

Nykad21

Ok, thanks guys. I still think it's daft to send out a letter offering the loan only to reject it when you ask for one.

[Deleted User]

The problem is, they can't know for sure whether they can give you the loan until they credit check you. They can only go on what they currently know about you and whether they are likely to accept you.