Excellent Credit Score but refused Credit

emw1979

I am after a bit of advice.....

My Partner applied for Credit at PC World/Currys, for the Buy Now Pay Later scheme, we decided to that instead of paying the money straight out.

The Company they used was Creation Consumer Finance, and he was declined the credit.

We were advised by PC World/Currys to contact Equifax for my Partners Credit Score. On Equifax is credit score is 515 - Excellent... so we are confused why they declined him credit?

If we write to the Creation Consumer Finance do they have to give the reason as to why the credit was declined?

Also my Partner was looking to purchase a New Car on Credit and we are now worried that being declined will affect his chance for credit?

Thanks

[Deleted User]

Unfortunately, your credit score is a little secret that only you get to see. Primarily because it's meaningless.

Lenders will look at the data on your file, plus everything else you put on the application form and rate you against their own criteria. You could have failed on affordability, poor credit history, electoral roll and so on.

They won't give you a specific reason.

Helvetica_Van_Buren

Credit scores are meaningless - anybody that says otherwise is lying, or mistaken.

Only you see your credit score; credit reference agencies do not making lending decisions and lenders do not see your credit score. Even if you printed it off and showed them, they wouldn't care.

Lenders make their own decisions to lend based on their own criteria. This will never change.

emw1979

Thank you both for replying.

That helps my understand - I don't understand why they tell you to check your credit score when you have been declined... and don't pay an attention to it.

My Partner was not impressed.. he has never been declined credit is is life and is in his 40's!

Thanks again!

fruitisbad

emw1979 wrote: »

Thank you both for replying.

That helps my understand - I don't understand why they tell you to check your credit score when you have been declined... and don't pay an attention to it.

My Partner was not impressed.. he has never been declined credit is is life and is in his 40's!

Thanks again!

I think there is a lot of confusion between file and score.

The company probably use Equifax to access the report which is why they ask you to contact them, however credit score is easily used instead of credit report to those who aren't that aware of the difference.

Thrugelmir

emw1979 wrote: »

That helps my understand - I don't understand why they tell you to check your credit score when you have been declined... and don't pay an attention to it.

Standard response. The reason will be contained somewhere within. Lenders use the data held by the CRA's to score you against their own criteria.

SeanG79

emw1979 wrote: »

Thank you both for replying.

That helps my understand - I don't understand why they tell you to check your credit score when you have been declined... and don't pay an attention to it.

My Partner was not impressed.. he has never been declined credit is is life and is in his 40's!

Thanks again!

They usually tell you to check your credit report rather than your credit score.

The score is usually based on information from the last 12 months, where lenders look back 3-6 years.

Are there any late payments, lack of trace on the electoral roll etc.?

Finance on a vehicle is usually easier to obtain, because it is secured on the vehicle, so if you don't pay they can repossess to recoup some of their losses.

Helvetica_Van_Buren

To be fair, the person telling you to check your credit file (never credit 'score') is probably doing so to get you out of the branch / end the call. The people on the front line who the public deal with have little to no influence over lending decisions so by telling you to check your file it makes you go away.

SeanG79

Even if you had direct access to the underwriter, they would not share the reason for the decline as they cannot due to Data Protection...

They can only refer you back to your credit file

Helvetica_Van_Buren

SeanG79 wrote: »

Even if you had direct access to the underwriter, they would not share the reason for the decline as they cannot due to Data Protection...

They can only refer you back to your credit file

That's not correct.

Underwriters CAN tell you what they don't like on your credit report - the fact they don't is because of their company policy, not data protection.

There's no part of the Data Protection Act that prevents two interested parties from discussing information.

There's nothing wrong with an underwriter saying "we don't like that you've had 10 defaults across 3 accounts in 4 years" - doing so breaches nothing.

emw1979

Are there any late payments, lack of trace on the electoral roll etc.?

Nope.. he as never missed a payment in is life.. but he has just recently gone back on to the electoral roll... so I'm not sure if this has had an impact.

He change address approx 3 years ago and did not registered on the Electoral Roll... so maybe it is that?