Declined loan but good credit rating

wildz

Been a customer with my bank for 26 years, have got a good to excellent credit rating, was granted a smaller loan 18 months ago no problem. Applied online for a top up, although it probably went through as a new loan. I was shocked when i was declined and the reason i was given was there is a bankruptcy in your name. I have never been bankrupt! my husband has been discharged from his bankruptcy for 4 years now, nothing to do with me. I have checked 3 credit reports and they show no such thing. I am wondering if its worth applying again by phone this time and explain the situation, or send copies of my credit report to head office. If my huzbands bankruptcy was affecting me then the bank wouldnt have given me the last loan. I have no other credit apart from mortgage.

DCFC79

wildz wrote: »

Been a customer with my bank for 26 years, have got a good to excellent credit rating, was granted a smaller loan 18 months ago no problem. Applied online for a top up, although it probably went through as a new loan. I was shocked when i was declined and the reason i was given was there is a bankruptcy in your name. I have never been bankrupt! my husband has been discharged from his bankruptcy for 4 years now, nothing to do with me. I have checked 3 credit reports and they show no such thing. I am wondering if its worth applying again by phone this time and explain the situation, or send copies of my credit report to head office. If my huzbands bankruptcy was affecting me then the bank wouldnt have given me the last loan. I have no other credit apart from mortgage.

Another classic case why the credit scores are of no use, lenders don't see them, the 3 agencies use different ratings so this should tell you they aren't seen.

No your husbands credit history shouldn't be affecting you.

Pixie5740

Are you financially linked to your husband (any joint accounts)? Was one of his creditors the bank in question?

The ratings generated by the credit reference agencies aren't used by any lender. Yes lenders use your credit history (but not the score) along with other information such as your past dealings with the lender, your income, number of dependents, whether you're a tenant or a home owner. So whilst Experian, Equifax and Call Credit might rate you as excellent clearly the bank doesn't.

john1002

Sounds like from taking out the loan a financial connection has been linked to you, now this could be at a previous address or your current one, not sure if you have checked all three agencies from your post to see if a link has been established. If one has you need to see how it was achieved, e.g. bank account, mortgage etc and then ask all 3 agencies to delink you of course assuming that you do not have a link.

Once this is done and updated that can take 2-3 months depending on update cycle then id reapply.

good luck and keep us posted. One more thing as you bank with them might be worthwhile calling and seeing if you can explain you have no connection and see how they have linked you.

john

ReadingTim

What's your income and how much are you trying to borrow?

The bank might also view the fact that you're trying to borrow more a relatively short time since you last applied for a loan as a sign that you're struggling to make ends meet - why do you need this "top up"?

wildz

We have got some money coming to us, the loan is for a caravan, short term loan in otherwords. Both work full time. Loan is for 4k, balance on original is £1700. Loan would be repaid once our money arrives.

ReadingTim

Could be something that's recently appeared on your credit history which causes the bank to take fright - I'd apply for the £2 report each CRA has to provide and check there's nothing untoward on that - this could be an early warning of identify fraud.

Alternatively, you might just not fit in with the bank's customer profile - you don't have any "right" to be loaned money, regardless of credit score. It's the bank's money, they can lend it to whoever they want, and they don't have to give any reason to anyone if they don't want to.

forgotmyname

Do you need your £2 report these days with noddle and clearscore being free?

wildz

I have all 3 credit reports, Equifax, Call Credit and Experian, they show nothing untoward. No idea why they (the lenders) reckon i have a bankruptcy in my name. I intend to ring the bank before weekend, not sure if its worth explaining to a human being and submit another application, see if same message comes up, i know i was having problems with my laptop that night i kept getting logged out and the anti virus kept kicking in.

Pixie5740

You still haven't answered whether you are financially linked to your husband and whether the bank in question is one of the creditors caught up in his bankruptcy.

wildz

Husbands name is on joint bank account, it is just used by myself, all direct debits are in my name, his salary goes into his bank account now. We also have joint mortgage, so if his bankruptcy (been discharged 4.5 years )was affecting me then i wouldnt have been approved for my original loan 18 mths ago, thats what i cant understand. Thanks