Top credit score - refused credit for being honest!

Jeanieallergy

I recently applied for a new mortgage and it was refused.

I eventually discovered that the problem was caused by the fact that I pay off my credit card bill in full each month. On the application I was asked for my credit card balance, and gave the balance as it was on the date of the application (at the beginning of March). The credit reference agency refused my application because they said some of my information didn't agree with what they had on file - they were using my balance as it was at the end of January, when of course it was much higher due to all the Christmas bills.

When I revised my application and entered the exact same credit card balance as the agency had on its files, the application was approved and I got my mortgage. Whaaat??? So I can only get credit if I tell lies and say I owe more than I actually do??? :mad:

[Deleted User]

That doesn't make any sense.


The CRA doesn't accept or refuse credit applications. The lender does that, based on the information on your files.

Ben8282

This is somewhat improbable. I believe the reason for the initial decline was something different.

glosoli

Cannot be right,

I cannot remember the last time I took a customer through a mortgage interview, and the credit card balance provided matched what was on their credit report (which can be between 4 to 8 weeks old). It is clearly not a case of dishonesty (or being too honest).

If a credit card balance shows on the credit report, and they pay it off in full every month, we either work the minimum payment into expenditure or ask for evidence its cleared every month.

I cannot see how this could have resulted in a decline decision to be honest.

nic_c

You must be misunderstanding the situation. Who did you apply through, the CRA do not give mortgages, loans, credit cards, or credit of any shape or form.
Can't be a full application as two applications to same company within a short space of time would surely flag suspicion if you manipulated your data.

Ben8282

Jeanieallergy wrote: »

The credit reference agency refused my application because they said some of my information didn't agree with what they had on file - they were using my balance as it was at the end of January, when of course it was much higher due to all the Christmas bills.

Is it possible that it was some other information which disagreed and this is nothing to do with the credit card balance at all?
Credit reference agencies do not approve or decline mortgage applications. The lender obtains information from the credit reference agencies which assist them in making their decision.
One possibility is that those Christmas bills were a lot larger than normal and the credit files were still showing a MASSIVE balance when the OP had claimed a very small one, but surely even that would not lead to an instant decline of a mortgage application if the credit files showed a history of full repayment and the OP had provided some evidence that it had been paid.

kingstreet

We specifically ask for the highest balance in the last three months to counteract the possible lags in the system and the lender seeing out of date data.

If the highest balance was £5,000 and it is always repaid in full each month and the balance will be £0 at completion, we enter £5,000 to be repaid on or before completion.

All the lender cares about is the impact of card debt on affordability. If there is £0 balance, there is no impact.

ashp_2

Our mortgage advisor told us it's best to put the balances currently showing on our credit files on the mortgage application. I think that is the best way to go about it for the lenders really. If you say you have 0 on a credit card but your report shows 5k they are going to be suspicious and decline.

kingstreet

ashp wrote: »

Our mortgage advisor told us it's best to put the balances currently showing on our credit files on the mortgage application. I think that is the best way to go about it for the lenders really. If you say you have 0 on a credit card but your report shows 5k they are going to be suspicious and decline.

You don't know if the lender is seeing the data you can see on your credit file. It could be seeing out of date information because the data taken by the lender is only updated once a month.

GingerBob_3

Dose anyone actually get mortgages these days? It seems to me that providers will blow you out for the slightest thing; not paying a CC in full, minor gambling transactions, spending too much at the hairdressers, etc, etc.

DCFC79

Jeanieallergy wrote: »

I recently applied for a new mortgage and it was refused.

I eventually discovered that the problem was caused by the fact that I pay off my credit card bill in full each month. On the application I was asked for my credit card balance, and gave the balance as it was on the date of the application (at the beginning of March). The credit reference agency refused my application because they said some of my information didn't agree with what they had on file - they were using my balance as it was at the end of January, when of course it was much higher due to all the Christmas bills.

When I revised my application and entered the exact same credit card balance as the agency had on its files, the application was approved and I got my mortgage. Whaaat??? So I can only get credit if I tell lies and say I owe more than I actually do??? :mad:

Which credit ref agency is it who refused you the mortgage ?

Was it the same agency who give you a top score ?