Rejected for a loan with very good credit score - why?

Legacy_user

I recently got an Experian account to check my credit status.
I am paying off some credit cards and thought I could get a loan to amalgamate them in one 'tidy' place.
My score was 981 and said excellent and I was in good standing with the credit cards I have.
I did their search for loans and an AA one with a 95% chance of approval came up so went for it and got rejected sadly.
As I have a good credit report with no CCJs or any other problems and the info it holds on me seems to be correct I'm at a loss as to why it was rejected.

I tried to contact them to see if they could tell me why but couldn't even get through to someone.

In the rejection email it said it had used Credit Reference Agencies - Experian (the one I used for the search) and Credit Reference Agency. It said "We would advise that you obtain a copy of the information these agencies hold about you before making any further applications".

I tried to do a check through the Credit Reference Agency but it said it was unable to make the checks online for me for some reason.

Does anyone have any idea what might have gone wrong?

Thanks in advance.

dealer_wins

"consolidating" means you will at very best be viewed as medium risk by lenders

System

Oh that's good to know. Thank-you.

[Deleted User]

Unless Experian are offering you a loan, you can disregard the score they've given you.

SnowTiger

bronte88 wrote: »

I recently got an Experian account to check my credit status.
I am paying off some credit cards and thought I could get a loan to amalgamate them in one 'tidy' place.
My score was 981 and said excellent and I was in good standing with the credit cards I have.

[...]

In the rejection email it said it had used Credit Reference Agencies - Experian (the one I used for the search) and Credit Reference Agency. It said "We would advise that you obtain a copy of the information these agencies hold about you before making any further applications".

I tried to do a check through the Credit Reference Agency but it said it was unable to make the checks online for me for some reason.

Does anyone have any idea what might have gone wrong?

I'm confused. You have an account with Experian and have seen your credit report.

What's the (other) Credit Reference Agency you mention? Equifax or TransUnion (previously CallCredit)?

My guesses: the lender couldn't find a credit file with the CRA for you or the lender doesn't want to lend you money.

Perhaps the lender thinks your income is too low, you're carrying too much debt already, your job's not very secure, doesn't like the area you live in or they've already met their lending targets for this month.

Nasqueron

Remember that a consolidation loan is not seen as that, but rather, has to be seen as an additional debt on top of your existing ones.


To you it is (credit card a £3000 + credit card b £3000 + credit card c £4000) - loan a £10000 = 0


To them it is (credit card a £3000 + credit card b £3000 + credit card c £4000 + loan a £10000 = £20000


This is the way lenders have to act under the responsible credit rules. There is no guarantee that you will spend the loan on the cards or that you won't just run them up again which is why they don't like consolidation.


You would do better attacking the cards, perhaps try for a BT card with a lender like Barclaycard or even Aqua / Capital One to try and get some of the debt shifted to 0% so you can snowball


Post on the debt free pages with a statement of affairs (SoA) and see if they can help you make savings

System

Thanks so much - that helps to know! I applied for an mbna card straight after to shift the debt to it and was accepted so it must just be so much harder to get a loan.
It would be great if loan companies weee able to give the exact reason!

Thanks again - I am looking forward to being debt free!

Hasbeen

bronte88 wrote: »

I recently got an Experian account to check my credit status.
I am paying off some credit cards and thought I could get a loan to amalgamate them in one 'tidy' place.
My score was 981 and said excellent and I was in good standing with the credit cards I have.
I did their search for loans and an AA one with a 95% chance of approval came up so went for it and got rejected sadly.
As I have a good credit report with no CCJs or any other problems and the info it holds on me seems to be correct I'm at a loss as to why it was rejected.

I tried to contact them to see if they could tell me why but couldn't even get through to someone.

In the rejection email it said it had used Credit Reference Agencies - Experian (the one I used for the search) and Credit Reference Agency. It said "We would advise that you obtain a copy of the information these agencies hold about you before making any further applications".

I tried to do a check through the Credit Reference Agency but it said it was unable to make the checks online for me for some reason.

Does anyone have any idea what might have gone wrong?

Thanks in advance.

Your made up score of 981 from them is meaningless you are the only one that sees it.

Its your actual credit report that really counts any thing on that? Also look at the 3 main providers all free and see if any differences.

Perhaps because you are paying of debt to various credit cards and now going for an other loan is the problem?

PixelPound

Nasqueron wrote: »

To you it is (credit card a £3000 + credit card b £3000 + credit card c £4000) - loan a £10000 = 0


To them it is (credit card a £3000 + credit card b £3000 + credit card c £4000 + loan a £10000 = £20000

If people are getting consolidation loans to pay their debt off believing they owe nothing then no wonder it's all going so wrong :rotfl: