Credit reference scores - any value to them

2muchfun

My daughter works full time earning £45k pa. She shares a house with her partner & they have 2 children. She has no loans, got a credit card to aid credit history & pays it off every month by direct debit(variable).She is paying off a Student Loan from her salary. She checked her credit rating which was 9.9. She approached a bank for a loan to buy a younger car & was turned down. The bank refused to discuss why this was (her history - is it not owned by her?) & told her that their refusal would be recorded & would create an adverse history for her when she does apply for a loan or any other credit elsewhere. We can't understand how this situation arises. Is it usual? & on a personal level should I have brought my kids up to be in debt & take loans out from a younger age? Confused Mum. Any advice would help. Thanks.
Incidentally the repayments would have been well within her monthly budget too.

Thrugelmir

2muchfun wrote: »

She approached a bank for a loan to buy a younger car & was turned down. The bank refused to discuss why this was (her history - is it not owned by her?)

History is simply a statement of facts published on a public record. Lenders will then apply their own commercial criteria in arriving at their decision to lend or not. Plenty of lenders in the market to cater for a variety of applicants and purposes.

[Deleted User]

There's no value to the scores, but lots to the history.

What do her three files show?

danze

The actual scores are meaningless, you might find the below link on MSE useful.

Don't take it too seriously. Your credit reference agency credit file is important. Its credit score isn't.

https://www.moneysavingexpert.com/loans/credit-rating-credit-score

Student loans aren't considered as debt and not on credit file, although as they do affect take home pay they will affect lenders affordability assessments.

There are a lot of tools on this site to look for loans that only do soft searches, which don't reduce the credit score (temporarily) by leaving a hard search on the file - if they are dead set on a loan for a newer car it may be worth trying them.

Superscrooge

2muchfun wrote: »

......................& told her that their refusal would be recorded & would create an adverse history for her when she does apply for a loan or any other credit elsewhere. .

The information your daughter was given is not correct. A credit search will have been recorded, but credit files don't include details of credit refusals. However too many credit searches in a short space of time is not a good idea as it makes it look as though desperate for credit.

Is your daughter on the electoral roll at her current address?

Nasqueron

2muchfun wrote: »

The bank refused to discuss why this was (her history - is it not owned by her?)

If banks reveal their lending criteria and approval process, people would tailor their application to try and get the loan even if they weren't suitable, it's nothing more than that

Check all 3 files Experian Equifax and Call Credit just in case something is funny (not sure where 9.9 comes from - Experian rate out of 999, Equifax is 700 and Call Credit 710)

fermi

CRA scores at best represent a "guess" at how an average lender may score you. Since none actually match such average criteria, they are next to worthless.

Ben8282

2muchfun wrote: »

. She checked her credit rating which was 9.9..

Really? With the Mickey Mouse CRA?

Ben8282

2muchfun wrote: »

The bank refused to discuss why this was (her history - is it not owned by her?) & told her that their refusal would be recorded & would create an adverse history for her when she does apply for a loan or any other credit elsewhere. .

Complete nonsense. Which bank has staff which are so impolite to potential customers by talking to them in this manner let alone talking out of the backs of their necks?
Assuming that a hard credit search was carried out at the very most her credit files will show that an application was made for a loan on x date. Nothing more.