Advice required re declined loan - great credit score

tamsmsc

Hi All,

I've been banking with HSBC ever since I was 11 (my dad set me up a kid's account type thing) I'm now 24 and applied for a £10k loan yesterday in the branch an was declined.

In the branch they worked out that I was eligible for one of their lowest rates (3.7% fixed over 60 months) due my banking being so great, their internal credit score for me was really high, I could make the repayments 6 times over with what I have left at the end of the month and so they were also surprised when it resulted in failure. It gave the reason of "Credit Score". They asked if I have any other loans, CCJs etc (I don't), and advised me to go and check Experian at home. I did so immediately, and it was a score of "Good (959)". Ranging back to 72 months, the report showed everything was perfect with green spots.

My only one negative factor was that the value of my highest credit limit is low ie. my credit card limit is £500. Which apparently means the bank doesn't trust me with a high amount. Which is FALSE, because HSBC offered me the credit card at £5k and £1k but I said no. Called up Experian and they said they see no reason why I should be declined if HSBC know this fact.

So my question is, on Monday I have an appointment to see the loan specialist to show her my Experian report. I don't want to reapply for the loan as that would mess up my credit score, but I want to appeal it.

Can they do that at the branch with someone/thing I've read about called an underwriter? Or will it be a long process that needs to be sent off etc. I've had their customer service people tell me all sorts of different things; it will take 8 weeks once sent off, they'll need to raise a complaint in the branch, go to the branch and make an appointment to appeal. Also do you think I have a good case at being successful at the appeal?

I would really appreciate some advice as to what would be the best way to request an appeal. Many thanks in advance.

PeacefulWaters

Contact Experian and ask them to lower your random number.

tamsmsc

PeacefulWaters wrote: »

Contact Experian and ask them to lower your random number.

What? Shouldn't my number bee higher? Why a "random" number?

rising_from_the_ashes

TBH it is a very large amount for someone who doesn't really have any record of obtaining / sticking to credit agreements of any significant sum

There will be other factors involved - eg your salary, what you want the money for etc

tamsmsc

rising_from_the_ashes wrote: »

TBH it is a very large amount for someone who doesn't really have any record of obtaining / sticking to credit agreements of any significant sum

There will be other factors involved - eg your salary, what you want the money for etc

I've had credit of £1k in the past (laptop paid it off in instalments)
They said my salary and what I want it for is all fine... I can pay it off more than fine. I've never missed repayments on my credit card etc. It wasn't the amount I wanted to borrow, it was the credit score which they said was the issue. Which after calling Experian turns out was a mistake because HSBC HAVE offered me higher credit I just never accepted it.

Thrugelmir

What's the purpose of the money?

PeacefulWaters

tamsmsc wrote: »

What? Shouldn't my number bee higher?

Given that your bank won't lend to you, they obviously think that your number should be lower.

Why a "random" number?

A company that doesn't lend money sells you a number in return for a monthly fee. The number is meaningless.

Out of interest, what is your annual salary?

tamsmsc

Thrugelmir wrote: »

What's the purpose of the money?

Car

PeacefulWaters wrote: »

Given that your bank won't lend to you, they obviously think that your number should be lower.

But that's my point, Experian said it was because my highest credit allowance needed to be something like £1k, which I've been offered before (and more)...

PeacefulWaters wrote: »

Given that your bank won't lend to you, they obviously think that your number should be lower.

A company that doesn't lend money sells you a number in return for a monthly fee. The number is meaningless.

Out of interest, what is your annual salary?

What do you mean sells me a number? I'm not paying them anything.

It's £18,650

[Deleted User]

tamsmsc wrote: »

It's £18,650

Now we're getting somewhere. £10k on that salary is a very big ask.

tamsmsc

Deleted_User wrote: »

Now we're getting somewhere. £10k on that salary is a very big ask.

Oh They never mentioned that to me. Why wouldn't they say?
...Even though they saw I put away at least £400 a month?

They quoted my repayments would be £180 a month which they also said would be quite reasonable.

Edit: just found this... Eligibility:

hold any HSBC Current Account except for the Basic Bank Account, which is not an eligible account
have an annual income/pension before tax of £10,000 or more
be a resident of the UK
be over 18

hyubh

tamsmsc wrote: »

I'm now 24 and applied for a £10k loan

Must be for something important!

In the branch they worked out that I was eligible for one of their lowest rates (3.7% fixed over 60 months) due my banking being so great, their internal credit score for me was really high, I could make the repayments 6 times over with what I have left at the end of the month

So in under 10 months time you could have saved the £10K yourself and avoided the interest? You sound the perfect customer - what a confusing state of affairs indeed.

My only one negative factor was that the value of my highest credit limit is low ie. my credit card limit is £500. Which apparently means the bank doesn't trust me with a high amount. Which is FALSE, because HSBC offered me the credit card at £5k and £1k but I said no

... because you knew you were about to apply for a £10K loan and didin't want to overdo your pre-existing credit levels? I expect a credit limit of £500 is chickenfeed for a 24 year old with an income that is over £1000 net of outgoings every month.

And yet... during the time I've been typing this you've provided some more details:

tamsmsc wrote: »

Car

Ah...

It's £18,650

So... on minimal credit history you want to borrow over half your gross salary to purchase a rapidly depreciating asset. Given you could make the monthly repayments '6 times over', presumably you still live at home, otherwise how do electricity bills and council tax get paid, rent or a mortgage be kept on top of, and the fridge restocked?