Making sense of a refusal.

TrvShane

Hi folks,

My wife and I applied for a loan for a car recently and got knocked back. the in-bank affordability check was fine as we easily have the money to cover the payments. This is the first time we've ever been knocked back for any credit since I got refused a credit card when I was 19 (18 years ago). We had a car loan with this same provider two years back.

When I prodded them for info the response I got was that there was a bad credit on the file. So, over to equifax and experian for both of us. Free trials to be cancelled, naturally...

So, ignoring the "score" because even though they were 460 and 972 for me and 461 and 940 for her I am aware that the number is kinda meaningless, I looked into it a bit deeper.

I have all the right accounts on there (two joint current accounts, two credit cards, two mobile phones - mine and my daughter's). All the numbers are right, not a single missed payment on record, all previous loans settled.

My wife has all the right stuff on there (the two joint current accounts plus one credit card, and her mobile). She has one late payment in 2011. Everything else is settled.

The current only financial association is between my wife and I. I have an old address association from over ten years ago.

Now, I find it hard to believe that one late payment three years back could have us refused a loan. Am I being unrealistic? Could that be the reason?

If not then there is obviously something that I can't see on the reports. Which leads me to my main question - aside from getting the credit reports and challenging any errors (not that there are any I can see) how can I find out what would have caused a "bad credit" kind of response?

I appreciate any advice you have.

Regards,

Shane

guesswho2000

It's possible, depending on who the late payment was to and who declined you?

That said, one refusal doesn't mean all will say no - you don't say who you bank with, but Nationwide offer a pre-application check on loans which gives an indication of acceptance/APR etc. - I used this and was accepted at the given rate (although they are also my mortgage provider, so essentially own my house if I default anyway!).

TrvShane

Hi,

Our bank is HSBC, and we got the car loan from them last time. The late payment was also to them, though it was on my wife's card.

Hazzinho

What's you're debt to salary ratio? Being on the electoral roll helps if you're not on it. You also haven't checked callcredit which you can check through noddle, they could have negative data on you.