HSBC Approved Loan and then declined?

DerbyMoney

Advice would be appreciated please! I applied for a £12,000 loan with HSBC on Thursday and it came back as ‘Decision Reffered’. I called HSBC on Friday who said I had been approved but needed to take salary verification into branch.

I managed to get a same day appointment and took 12 months of payslips to the branch. When I got there I got told I’d been approved at a rate of 8.9%, the advisor got the underwriting team on the phone who also stated the above and at the end then ran the application through and declined me due to credit rating? How can they give me a personalised rate and tell me I’m approved if they haven’t already done a credit check?

My credit score isn’t great, but I have never defaulted on a payment. All down to debt:income ratio - was looking for the loan to consolidate existing debt.

Pretty gutted three people told me I had been approved and had even been given a personalised rate. Where do I stand in putting in an appeal, because this situation and process doesn’t seem right?

[Deleted User]

You can appeal if you want, but it's highly unlikely to make a difference, as you're not meeting their lending criteria, failing the final checks,

From what you describe, you're carrying too much debt, so focus on clearing down the balance before reapplying elsewhere.

Westie983

DerbyMoney wrote: »

Advice would be appreciated please! I applied for a £12,000 loan with HSBC on Thursday and it came back as ‘Decision Reffered’. I called HSBC on Friday who said I had been approved but needed to take salary verification into branch.

I managed to get a same day appointment and took 12 months of payslips to the branch. When I got there I got told I’d been approved at a rate of 8.9%, the advisor got the underwriting team on the phone who also stated the above and at the end then ran the application through and declined me due to credit rating? How can they give me a personalised rate and tell me I’m approved if they haven’t already done a credit check?

My credit score isn’t great, but I have never defaulted on a payment. All down to debt:income ratio - was looking for the loan to consolidate existing debt.

Pretty gutted three people told me I had been approved and had even been given a personalised rate. Where do I stand in putting in an appeal, because this situation and process doesn’t seem right?

You can make a complaint for the miss information you were given, but when you take out a loan its not guaranteed till the credit check is completed, this is the same for credit cards you are given the APR rate and options before the credit check so can still fail even though you have a APR.

In relation to the appeal I doubt that HSBC will relook at the application as by you own admission you are consolidating debts and this loan will not be seen as a consolidation but extra borrowing as they don't know if you will in fact pay off the outstanding loans or debts. The only way this would be possible if you are applying for a loan where you have existing debt and they can pay off the debt as part of the application and speak to the underwriters to explain.

I would refrain though for making any more applications and try to maybe snowball some of your debts down as consolidation loans rarely work, lots of threads on here explaining.

Westie983

MEM62

DerbyMoney wrote: »

My credit score isn’t great, but I have never defaulted on a payment. All down to debt:income ratio - was looking for the loan to consolidate existing debt.

Then you may have failed the final checks based on affordability. The lender will consider the risk based on the ratio of your earnings to the debt you already have and the new loan. This could be a blessing in disguise as consolidation rarely works and often leads to higher levels of debt.

Nasqueron

Consolidation loans will almost always fail without a dedicated and determined attempt to deal with the underlying issues. Once you have the loan there is no guarantee you won't use it for something else and then you end up with 2x the debts which is why they reject on affordability grounds as they're looking at it on the basis of loan + existing debts.



Read the sticky post about why consolidation is bad then go to the debt free wannabe forum and post a statement of affairs (SoA) and the people on there will help you save money and snowball your debts