Refused a loan, but excellent credit score, should I try again?

lauram89

Hi,

I applied for a loan the other day with Sainsburys, as it seemed the lowest rate that was available for my eligibility. I was refused, so I tried again, after I had moved some savings and paid off an outstanding overdraft. After this, I was approved in principle, but later refused.

I've now checked my credit score, on numerous websites, are can't see any problems, in fact, they all give me an excellent score.

What I need to know is, should I reapply for a different loan, I'm worried it might affect my score if I apply somewhere else for credit, then I'll be stuck!

Thank!

[Deleted User]

Your credit score is a little secret between you and the CRA - it doesn't count for anything in the real world, or reflect your credit worthiness.

What do your actual files say?
How much are you looking to borrow?
What is your income?
Are you on the ER?
What is your credit history and other borrowing like?

Shazza3383

For loans they go on ur credit and affordability. Having a good credit score is one thing but if on ur credit file says u have credit cards, outstanding loans, hp, finace etc they add this all up to see ur affordability of paying it bank. Also if ur payments are not up to date, been missed payments this also effect the out come of a successful outcome. Be careful when applying again if u already been refused this also can show up on ur file so other lenders will see u been refused which could not go in ur favour. Did u ask y u been refused, was it ur income was not enough or credit report etc mite give u a better idea where to apply next.

[Deleted User]

Declines are not shown on credit reports.

Ben8282

I was looking at the link.
I was concerned at the existence of an upper age limit. Is this not age discrimination and therefore illegal? Why can an 81 year old not take out a loan? I would have thought that the average 81 year old was probably more financially secure than the average 18 year old.

Gaz83

Ben8282 wrote: »

I was looking at the link.
I was concerned at the existence of an upper age limit. Is this not age discrimination and therefore illegal? Why can an 81 year old not take out a loan? I would have thought that the average 81 year old was probably more financially secure than the average 18 year old.

Maybe more financially secure - probably not more life secure.

Who do you think is more likely to live for another five years - an 18 year old or an 81 year old?

[Deleted User]

Mid-term death often results in missed or late payments.

Brock_and_Roll

Well statistically, an 80 year old man only has a 30% chance of making it to his 90% birthday.........


...... so the odds are that if an 81 took out a 5-year loan, only about half would make it until the end of the term.


If we also assume that if an 81yo needs a loan, there is a higher than average chance that the person's Estate would be very small.


So lenders would have to be mad to make unsecured loans to 81 year olds.

MallyGirl

lauram89 wrote: »

Hi,

I applied for a loan the other day with Sainsburys, as it seemed the lowest rate that was available for my eligibility. I was refused, so I tried again, after I had moved some savings and paid off an outstanding overdraft. After this, I was approved in principle, but later refused.

how long did you leave after moving money around? the data from your bank etc may only be sent once a month to the CRAs

It is all about your credit history - and affordability - not your credit score. What does your history look like? Any late payment markers/defaults? Lots of credit agreements being managed well or hardly any activity?

amandacat

Last year I applied for a Santander loan and was refused and a few days after applied to my own bank NatWest and was accepted. This was despite an excellent credit score and having a mortgage with Santander with no defaults.

There are other factors considered aside from credit score including income turnover and the amount of other debt as well as the number of other recent credit searches made.

DCFC79

amandacat wrote: »

Last year I applied for a Santander loan and was refused and a few days after applied to my own bank NatWest and was accepted. This was despite an excellent credit score and having a mortgage with Santander with no defaults.

There are other factors considered aside from credit score including income turnover and the amount of other debt as well as the number of other recent credit searches made.

Despite you having an excellent credit score it isn't taken into account.