£700 loan refused

onefurlongout

Wondered if someone could help?

I decided to take advantage of a 20mth interest free loan instead of purchasing in cash and was refused by Barclays Partner finance.

Having finally spoke to some to find out why they just said I was declined but would not tell me why. I have an excellent credit score with both Equifax and Experian and I'm not aware of any other negative factors that could impact their decision and there aren't any issues on my file.

Are Barclays obliged to tell me why, other than I didn't meet their lending criteria? Surely they should tell me why I was declined so I can make good any issue.

Interestingly I've just received a letter from my bank (Barclays) that I've been pre approved for a £30k loan:D

sourcrates

onefurlongout wrote: »

. I have an excellent credit score with both Equifax and Experian and I'm not aware of any other negative factors that could impact their decision and there aren't any issues on my file.

Are Barclays obliged to tell me why, other than I didn't meet their lending criteria? Surely they should tell me why I was declined so I can make good any issue.

Just goes to show that credit scores are meaningless.

They are under no requirement to inform you of why you were declined, just that you don't meed there current lending criteria.

Arleen

They don't have to tell you anything or offer you any services at all.

onefurlongout

sourcrates wrote: »

Just goes to show that credit scores are meaningless.

They are under no requirement to inform you of why you were declined, just that you don't meed there current lending criteria.

Arent they just

DCFC79

onefurlongout wrote: »

Arent they just

Was that reply half finished ?

Anyway, your credit score is neither here nor there, what matters is what on your credit file.

Why were you after a loan for £700 ?

Sarastro

If your credit history is good, then it could just be that they would prefer to lend it to someone else whose credit history isn't as good and would be willing to pay a higher interest rate for the loan. I winder if you had asked for a £30k loan you probably would have met their criteria for the opposite reason.

onefurlongout

Its was interest free. Instead of paying cash I opted for the pay monthly option.

AnotherJoe

Do you have any credit cards OP ?

onefurlongout

AnotherJoe wrote: »

Do you have any credit cards OP ?

I do but only £300 balance which is cleared monthly.

I have a mortgage and car loan. All which are more than affordable on my salary.

poppasmurf_bewdley

You can have a perfect 100% 'credit score' and be turned down for finance.

The main reason? Income (say) £20K pa, loans outstanding £10K, then you are already over the 50% guidelines most loan companies use when calculating whether the loan is affordable, so a rejection is issued.

Without seeing all your financial details, nobody can tell you for sure why you were rejected.

onefurlongout

poppasmurf_bewdley wrote: »

You can have a perfect 100% 'credit score' and be turned down for finance.

The main reason? Income (say) £20K pa, loans outstanding £10K, then you are already over the 50% guidelines most loan companies use when calculating whether the loan is affordable, so a rejection is issued.

Without seeing all your financial details, nobody can tell you for sure why you were rejected.

That’s why id like to know. I’m worried about possible fraud.

I earn 60k pa, the wife is part time on 10k, we have £20k on car finance £260pm and a £175k mortgage £925. Never missed a payment.

Seems pretty average to me. I mean it’s £700 no £70000