Confused!

iolanthe07

Being turned down is nothing personal. It may just mean that you don't meet M & S criteria for now. For example, if you applied at the end of a month, a refusal may mean no more than they have reached their loan ceiling for that month/quarter. No one really knows what criteria individual lenders use, so just be philosophical and try somewhere else.

Clive_Woody

Rob_Shirley wrote: »

Thanks for advice everyone. If I've learned one thing, it's that theres no such thing as a credit score 😊

Loan is for £5k, so there really shouldn't be an issue with affordability. Deposit is refundable, so if worse comes to the worse I just carry on struggling on by with my old banger 🚙💨

It could be that M&S have a rule that says an automatic no if there is any history of missed payments in the last 2 years. No one knows and by all accounts rules differ between companies.

It may well be worth applying somewhere else, some lenders allow a soft search (i.e. one that leaves no trace on your credit file) that gives a reasonable indication of how likely you might be to get a loan with them. I think Nationwide did and probably others. It might be worth trying one of these first.

20aday

As Clive Woody points out select companies offer a "Soft Search" facility to gauge the probability of being accepted for a loan.

There's a tool on the main MSE website. Nationwide offer the facility as do Sainsbury's Bank, NatWest and RBS (assuming you bank with either NatWest or RBS.)

forgotmyname

burlington6 wrote: »

There's no such thing as a credit score
There's no such thing as a credit score
There's no such thing as a credit score
There's no such thing as a credit score.....etc

No type this out 100 time

There is aa credit score Experian will sell you a useless one and I myself will give you a free score rated in Biscuits.

Earn £37k but what outgoings do you have, how much was the loan for, purpose of the loan, affordability? etc etc etc..

Places that do offer loans want to know things that the credit agencies do not. The credit agency does not know if your working or have any income.

My partner could not open a bank account due to a name mixup on the electoral roll. yet she had savings accounts, but those didnt appear on the files.

CalumHeath

Lenders do not see your credit score - it's a marketing tool created by credit reference agencies used to to sell their premium services.

They do, however, see your credit history which is (should?) be an accurate record of credit accounts and applications for credit.

Your eligibility is not solely based on one factor; any combination of the following factors might be taken into consideration:

- amount of existing debt
- amount of existing available credit
- history of settled accounts
- history of incurring defaults
- number of recent applications for credit
- age
- whether single, married, widowed, separated or divorced
- whether home-owner, tenant or living with parents
- whether you're on the electoral register
- current employment status
- length of time with current employer
- salary

This is by no means an exhaustive list and how each credit-provider assesses you is different; some companies may not consider many of these factors, some may consider even more. Certain factors may not carry any weight and some might dictate the decision-making process completely - you'll never know.

There is no one rule and the only way you'll know is if you apply and are accepted; ultimately, it's up to each company whether they want to give you a loan or not and on what terms. They have no obligation to lend to anyone nor explain or justify their lending criteria.

chesky

Why didn't you apply to your own bank? Or at least apply to them now rather than lose the car you want. If you go back to the dealer and say you want to withdraw the offer, they will talk you into car finance which you will probably get but which will be much more expensive.

Mirno

If you have a partner, are they also on the mortgage? If so you are financially linked, and their credit file can have an effect on yours.

Also if the total of your loan, any credit cards, and the proposed new loan is too high this can affect your chances too. While your previous behaviour may have been exemplary, taking on too much debt is a worrying sign and presents a risk.

Rob_Shirley

Thanks again for all the suggestions - pleased to report a happy ending.

I applied to my own bank and got approval (and the money UN my account) within 48 hours. I pick my car up tonight!

poppasmurf_bewdley

If I was placing money on the reason for the refusal, it would be that missed payment two years ago.