Refused loan and have high credit score

andju6290

I applied for a loan to M & S as good interest rate advertised via MSE. My credit rating is very good as just checked via this site with all 3 main credit check companies.

I got an email from M & S saying application unsuccessful and they will write saying why.

Im concerned as to a)why I was refused, it wasnt a major loan and b) whether their refusal impacts on my credit rating and c) what might be their reasons for refusing a loan if its not on credit score ?

Be grateful if anyone can advise.

iolanthe07

Your credit rating/score is a meaningless number dreamt up by a credit check company that doesn't lend money. M & S won't see your credit score anyway - what they will see, and what they're interested in, is your credit history. Reasons for refusing a loan are many; it could be that M & S have reached their target for loans this month/quarter, it could be that there is some negativity in your borrowing history, it could be that they are unhappy about your income to loan ratio (especially if you're living in an overdraft. Are you?)

Don't forget that lenders are only obliged to offer the headline low rate to 51% of successful applicants. At least M & S are going to tell you why you were refused, and it may have been for a reason you are able to address. Most lenders don't reveal their reasons for a refusal.

DCFC79

andju6290 wrote: »

I applied for a loan to M & S as good interest rate advertised via MSE. My credit rating is very good as just checked via this site with all 3 main credit check companies.

I got an email from M & S saying application unsuccessful and they will write saying why.

Im concerned as to a)why I was refused, it wasnt a major loan and b) whether their refusal impacts on my credit rating and c) what might be their reasons for refusing a loan if its not on credit score ?

Be grateful if anyone can advise.

How much did you ask for ?

What is your salary ?

Any debts ?

TadleyBaggie

To answer b), the impact on your (imaginary) credit rating is the same for a refusal or acceptance. Just a credit file search being registered.

dlusman

If they are going to write and tell you why - I dont see any reason at this stage for anyone to try and speculate on points a) & c) ?

BoGoF

I doubt the letter saying why it was refused will be anything other than the generic answer usually given.

pcman1985

A. You were declined because you didn't meet their criteria for the loan you spied for
B. One search will have little effect on your credit file. Try to have no more than three searches in a 12 month period.
C. It could be because your income was not high enough, not a home owner (unlikely to be this one), not enough time at your current home, not on the electoral register, not enough time in your current employment. But more than likely it was something on your credit file. It will be nothing to do with the number given to you by the CRA.

andju6290

Thanks for replying, I asked for a 7000 loan and earn 50k a year with low mortgage. I've got a new 0%credit card from another company in June with a 9 grand limit , which I don't intend using don't know whether that might affect things. Currently paying credit cards off direct debit every month.
Just can't see why I would be refused.

andju6290

Salary 50 k
Lian applied for 7k

Small mortgage, no other loans and credit cards paid off each month

andju6290

Thanks for responding I'm a bit perplexed as I've lived in the same property had the same job earns a good salary for a long time now and never been refused any credit. Only a few months ago I got a credit card with a 9 grand limit so not sure what the reason is will just have to wait for the letter.
I'm just more concerned whether something has appeared on my credit file that I am unaware of but as I said the credit rating scores are very high. Makes me a little anxious to apply to another bank now.

andju6290

If I apply to another bank can I just ask for a quote which won't show up on a credit check ?