Struggling to get a loan with good credit score

pickle109

I’m struggling to get accepted for a loan for 8k - I’ve tried my current bank for a quote and got a high apr - I applied to 2 banks that mse eligibility calculator thought I was a good 90% chance of getting. 1 declines the other a high apr . I have a Experian credit score of over 900, so good! I have a good salary , and live in my partners house, currently not paying rent/ mortgage so I have good disposable income right now. Why can I not get a loan and good apr ? The only comment on my credit report is that I haven’t got large credit limit - my credit card limit is only up to 2k and I don’t use it often / pay it off regularly.
Any advice ??

Edi81

Yet another person falling for the mythical credit score!
You don!!!8217;t have one but you do have a credit history.

Are you on electoral roll at current address and we!!!8217;re you registered at previous addresses. Lenders are looking for 3 years plus of continuous history ideally on this.

Value of loan applied for compared to annual salary?
Purpose of loan?

All things that are taken into consideration.

Have you tried your own bank?

poppasmurf_bewdley

The Credit Reference Agencies give everyone a credit score, but unfortunately they don't give loans.

What is your ratio of earnings to loans? If more than 50%, that will likely lead to a refusal. Are you on the Electoral Roll? If not, that's another reason for rejection.

Different banks and loan companies have different criteria, and what one accepts another won't.

pickle109

Hi - the amount I am borrowing is 20% of my salary.
I am on electoral roll and always have been - no bad things on the credit report like that.

pickle109

Hi - I looked at my bank but the apr was at 9% which is high in comparison to offered to others. trying to get an understanding why i cant get offered lower apr and declined on some banks

ReadingTim

"Struggling" to get a loan. You're not actually struggling, you've been accepted 2 out of 3 times, but you don't like the rate and think you're entitled to a lower one.

Sorry mate, it doesn't work like that, and rate doesn't simply reflect risk - banks have to make money, so there's an element of profit making reflected in that price - perhaps due to your good salary and disposable income, the bank simply thinks you're good to pay a little more - in the same way as certain website adjusted their prices upwards when they saw the viewer was browsing via an Apple device.

pickle109

I have been accepted on 1 but not the other. The one I was accepted on MSE thought was 80% chance, and yes was a high apr . The other that was 90% chance of eligibility I was declined. So Im being declined on one, and trying to learn why that was, whilst understanding why APR is higher than the initial advertised rate. Trying to learn to improve financial status going forwards on things like a morgage.

DCFC79

Nothing wrong with the rate you have been offered, it's not the best but better than a higher rate. If you don't pay rent and have a good disposable income then surely you have alot saved up.

pickle109

Personal circumstances has unfortunately meant that wasnt the case otherwise this post wouldnt have occurred. Again I am purely trying to get some understanding as to why increases the APR , why I was declined a loan / cant get credit card limit above 2k .

AndyPix

Having a thin history can affect decisions.
You have to show a proven track record of managing debt to be seen as the lowest risk.


Also, if you keep applying , you will look desperate - which will also count against you and increase any rates offered

ReadingTim

Because it's a commercial decision, not simply a mathematical calculation based on your credit score, or even your credit history. You have no right to be lent money; there is no law to say someone with a score of a must be charged x%, some with a score of b must be charged y%.

Banks keep those commercial considerations confidential, but it's possible that you're not their target customer, or they don't think they'll make much money out of you (no potential to cross-sell other products), or simply that they've met their lending / loan sales targets that month. They might feel that your credit history isn't very full, or that your outgoings seem strangely low compared to your income, or merely be concerned that you want to borrow money when you apparently have no need (high income, low outgoings).

Point is, no-one knows, so assuming there aren't any horrors in your credit histories from all 3 of the main credit reference agencies, then you're just going to have to chalk this one up to experience. (And maybe lower the sense of entitlement relating to rates)