Bank manager discretion

sianp85

Hi, in the last 15 months i have worked hard to improve my credit score from poor to good. I have still been refused a loan online, based on my income, even though a break down of my income shows i can afford repayments they wont accept it. Do in-branch bank managers still have discretion to approve loans?

Caz3121

did you apply to your own bank?

somethingcorporate

You'd like to think so but I really don't think there is any more.

poppasmurf_bewdley

If you had a poor credit rating 15 months ago, it's not likely that all evidence of this will have disappeared from your files.

It can take up to six years for all evidence of poor credit to be removed, and even then you will need to have a proven record of good behaviour before you could be more or less guaranteed to get a loan.

Many bank branches don't even have a manager any more - unfortunately.

Pixie5740

Only people in soap operas put on a suit and go to see the bank manager for a loan these days and when that doesn't work they pop round to The Arches to get a loan from Phil Mitchell.

I wouldn't put too much stock in any credit reference agency saying that your score is now good rather than poor because credit reference agencies don't lend money and you don't have a universal score.

worriedindebt

sianp85 wrote: »

Hi, in the last 15 months i have worked hard to improve my credit score from poor to good. I have still been refused a loan online, based on my income, even though a break down of my income shows i can afford repayments they wont accept it. Do in-branch bank managers still have discretion to approve loans?

Short answer is No they don't.

Not sure how you can "improve" your credit score tbh... These things are only really affected by:
1. Your repayment history: this stays on your record for 6 yrs
2. Your exposure to external borrowing (ie your total credit limits which includes any limits on credit CDs you don't use). If you have more than £25-30k in total (not incl mtgs) then even if it's affordable you will probably will be rejected.

I find these credit checking companies a bit misleading as there isn't really a "credit score" as such. Each lender will have their own risk appetite and will score lending (and the subsequent interest they charge) based upon this.

PBA

Bank managers don't approve loans, this is done by underwriters. There are advantages in applying in branch though. If the application was declined based on your income, this makes it sound like the bank is happy to grant you a loan, just they think the amount you're applying for is too much. But whereas an online application will simply say no, a Personal Banker will be able to help you find a loan amount they can order you.