Good score but turned down- what now?

bertiewhite

sjbrun wrote: »

How much do you earn? As a 25k loan is very high so you will need to be earning at least 60k plus to be accepted.

I had a 22K loan on a 40K income with Tesco.

Pixie5740

bertiewhite wrote: »

I had a 22K loan on a 40K income with Tesco.

Did you already owe £22k on credit cards and other loans when you applied for the Tesco loan?

bertiewhite

Pixie5740 wrote: »

Did you already owe £22k on credit cards and other loans when you applied for the Tesco loan?

Yes - it was a consolidation loan

littlebitconfused

Candyapple wrote: »

OP have you checked what is showing on your other 2 files?


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


Some questions for you:

1. Are you on the electoral roll (does it show on all 3 files?)

2. Does the £25k loan you have paid off show in the settled section on your credit files? (on all 3) Or is it still showing as a 'live' account?

3. What is your annual salary?

4. Please list all credit card limits along with outstanding balances. Same goes for car finance and any overdrafts.

5. Do you have any late payments / defaults / CCJs?

6. Do you have many other 'credit' accounts showing on your files such as bank account / mobile phone etc.?

7. How many credit applications have you made in the last 12 months?

Thank you for replying.

The credit report part of the MSE Credit Club gives you a full, free Experian report including everything you've listed above (salary, home, credit cards, CCJs etc)- all are reported as good.

I tried to post a screenshot of the summary (anonymised of course) but cant as a newbie, but the 44 page printout gives details of every aspect of my financial life- credit card debts, loans, mortgage, overdraft- all detailed with balances on a month by month basis! Its really quite scary how much info is available. They really do know everything about me financially.

I appreciate that this isnt the be all an end all of getting a loan but I wanted to use it as a general indicator of my chances and to identify any potential factors I could improve.

The just completed 'old loan' now shows as zero balance but I wonder if thats the major hurdle in which case ill wait a couple of months then try again. Im slightly worried as I made two failed applications in the confused period (as the tesco one crashed basically) which are recorded on the report but i cant do anything about that now I guess.

The other factor I'm considering is that is appears to list only one bank account which has one part of my income paid into it. I have a business account with a different bank from which I take income mainly into a joint account with my wife. Perhaps that may have something to do with it?

Several people have mentioned snowballing but ive tried a few calculators and none of them compare to the speed and relative low cost of the loan.

Pixie5740

Yes but not all lenders use Experian for credit referencing and reporting. Some lenders use Equifax and Call Credit instead. That's why you should check all 3 files because they won't be identical.