Loan eligibility using a soft search tool

Kay1970

Hi

I'm brand new to this forum and would love some advice. my husband recently used the loan eligibility soft search tool to look for suitable lenders to provide a 20k loan over 5 years after submitting relevant info results included Hitachi at 90% eligibility ( excellent chance) however upon applying he was referred to underwriters then declined today :mad:

obviously this will affect my husbands credit score/file, it's a little confusing after a soft search has shown excellent chance of eligibility then to be declined, does anyone have any advice on what he can do now, hitachi didn't even contact him for any further info after the decision went to underwriter. I also thought the soft search tool provided decent accuracy??

DCFC79

Kay1970 wrote: »

Hi

I'm brand new to this forum and would love some advice. my husband recently used the loan eligibility soft search tool to look for suitable lenders to provide a 20k loan over 5 years after submitting relevant info results included Hitachi at 90% eligibility ( excellent chance) however upon applying he was referred to underwriters then declined today :mad:

obviously this will affect my husbands credit score/file, it's a little confusing after a soft search has shown excellent chance of eligibility then to be declined, does anyone have any advice on what he can do now, hitachi didn't even contact him for any further info after the decision went to underwriter. I also thought the soft search tool provided decent accuracy??

It will leave a mark on his credit history which will be a search was carried out that's all.

The soft search tool has no idea of the applicants credit history does it so how can it determine if the applicant is a dead cert to get a loan.

Kay1970

How does the soft search come to the eligibility ratings ie 90%excellent , 70% good etc? What is this based on?

He has a good credit History and hasn't been declined previously?

hitachi state they can't discuss the decision over the telephone either and he needs to pay £2 to experience for a copy of his report.

Kay1970

Sorry I did mean experian not experience its predictive text:)

DCFC79

Maybe that's the next step then, get a copy his report for £2.

DCFC79

Kay1970 wrote: »

How does the soft search come to the eligibility ratings ie 90%excellent , 70% good etc? What is this based on?

He has a good credit History and hasn't been declined previously?

hitachi state they can't discuss the decision over the telephone either and he needs to pay £2 to experience for a copy of his report.

Good credit history doesn't mean he will get accepted every time.

Nasqueron

Kay1970 wrote: »

How does the soft search come to the eligibility ratings ie 90%excellent , 70% good etc? What is this based on?

He has a good credit History and hasn't been declined previously?

hitachi state they can't discuss the decision over the telephone either and he needs to pay £2 to experience for a copy of his report.

90% still means a 10% chance of rejection.

Something in his record has made it so they won't lend to him - you could check for free on Noddle rather than pay for the £2 report though that would be worth checking if nothing on Noddle comes up.

It could be anything, we wouldn't know - even if his record was spotless they may just have decided not to.

At a guess it could be:

Too much credit available (even if not used there is the potential to run up debts all in one go)
Mortgage has lots left on it (and so in the event of financial issues the unsecured loan would be sacrificed to keep the house)
Incorrect entry on his credit record
Financial association with you (if you have a not so perfect record)

You could post more info (such as the amount of credit you both have, how much is used (and is it paid off in full every month), whether you have any other finance (car loan/PCP, mortgage etc) and we could guess but ultimately it's a commercial decision, they don't have to lend to him if something spooked them

CHR15

If it was to consolidate debt then that would explain the rejection.

WillyWonga

I take it this was a £20k unsecured personal loan? Dont be alarmed if rejected as the lenders will want the creme de la creme. This is a huge risk to them - they will give you £20k in return for no security and the promise that you will pay them £xxx a month. Its a lot to ask for unsecured and only a small percentage will get the loan, very small. I used to work for a high st bank where for loans above £10k they gave the customers a grilling.