Experian Score 999 out of 999 - Still refused a loan

caramiacecilia

Hi all,

Wondering if anyone can shed some light on the current situation I find myself in. I am 24, Masters Graduate currently working in the legal sector. I've had my first car nearly a year now and was looking to take out a moderate loan to upgrade this. However, upon my visit to the bank, the bank manager told me that I would be refused due to Credit Bureau Data.

I've never missed a payment on anything, no CCJs, no unpaid debts, nothing. I requested my credit reports from all three of the main credit reference agencies that my bank uses (Equifax, Experian and TransUnion - I think, cant remember). There is nothing negative showing on any of my reports and I am ranked 999 out of 999 on Experian, my Clearscore score is around 460 and 4/5 with my bank's own internal ratings (I know the scores dont particuarly mean anything - this is just an indication of how my report appears - good). I have a small overdraft of £200 (to be paid off in summer) and a credit card with a limit of £1000 which I use and pay off in full every month.

I moved out of my parents home with my ex boyfriend in 2017 - for only 6 months - and moved home when our relationship broke down. He (until recently) was listed on my reports as a financial connection. When this was removed I was expecting the problem to be solved. It is not, 3 months later I am in the same predicament. I have been to other lenders who have indicated I would also be refused for a loan.

I am not sure what my options are? I have spoken to CAB but they are not much help, telling me that I have no automatic right to be given credit. And the only other advice I have been given is to wait 6 years... Helpful! Wondering if anyone could offer any advice as to what I could do to resolve the situation?

Thanks in advance,

BoGoF

As you have discovered your fantasy 'score' means nothing in the real world.

Ignore it and focus on your credit history. Any overdraft is bad news - it suggests you are living beyond your means. Why are you waiting to clear it?

worried_jim

Ignore "999" or 653, or 254 or any other made up number. Its your credit history and affordability credit providers go on.

Have you checked your free copies of your credit file to make sure the data is correct?

https://www.clearscore.com
https://www.noddle.co.uk
https://www.moneysavingexpert.com/creditclub

YorkshireBoy

Very strange to be told you "would" be declined if you applied!

That might imply a UK residency issue? Perhaps not on the electoral roll (you'd need to have told them that though, because they couldn't find out unless they searched your credit files, and it doesn't sound like you have applied yet).

Could also imply an employment/income issue? How long have you been employed? I'm guessing you've only just started, or are about to start, as £200 could be found from your first pay cheque!

Define "moderate" in terms of the loan size being requested.

What's your income?

[Deleted User]

I was thinking the same as BoGoF. The fact that you can't pay a very small overdraft until later is going to raise concern with the lender.

[Deleted User]

A very thin credit history and a lack of available funds are your obvious problems.

Clear the overdraft and build some savings (doesn't help with getting credit, but you need some). Try getting another card or three - accept any increases you get offered as your current limit is very low.

Over time, you'll improve how you appear to lenders.

CakeCrusader

You haven't said if you've already taken out a loan to pay for your current car, it may be that you're already borrowing too much compared to your income, legal pay isn't always good for trainees/paralegals. It's best to wait to see what's on your credit files. You didn't pay for these, did you? You can access them for free, try Noodle, Clear Score and the Money Saving Expert Credit Club (they cover the main three, Experian, Equifax and Call Credit or something like this).

caramiacecilia

Apologies as I am a new user I am unsure of formatting and I am unable to post links so I'll try my best to make it clear



@BoGof - My account is still a graduate account, I get interest free overdraft - I am not actually in my overdraft and therefore thought it is not impacting my financial position so I have slowly been paying it off each month allowing me to save more instead of paying it in one big bulk. ( I have around £2,000 saved) My account upgrades to a standard account in summer so I was looking to pay it off fully before this happens (I was avoiding the monthly charges with keeping a free student account for as long as possible).

@worried jim - I have checked the free copies - all of the information in them appears to be correct.

@YorkshireBoy - I am not sure what the bank manager did on the system - but I think it was more along the lines of 'I am not eligible to apply for a loan due to information we have about you'. Once I asked further questions he said it was Credit Bureau Data. I have also been on the Electoral Roll since I was 18 - no issues there. I've been permanently employed for over a year now and earn a decent wage where I live (£20k). As explained to other users, I am not using my overdraft - I was not clear on this my account has the facility of a £200 overdraft which I am paying off £100 a month on average so I am able to save more. I was trying to keep my student account as long as possible to avoid monthly charges of a 'standard' bank account.


@zx81 - I do have available funds - around £2,000 in savings and other than paying for everything on my credit card, I am not sure how else I can up my credit usage other than getting a loan I am not being approved for? As a student - I graduated from my Masters in January (I was studying part-time and working full-time) I dont know how I am expected to have a credit history? I have paid for all of my own mobile phone contracts, gym contracts etc.


@CakeCrusader - I'm not actually borrowing anything at the present moment - I paid for my car outright (It was only £500 and showing signs of requiring major repair - which will be more than the car is worth hence the need for a new car). The only borrowing I have is my overdraft (even though I am never in it) and my monthly credit card expenditure which usually does not exceed £200.

I have signed up to free trials which I am going to cancel once they require payment. I earn a high wage for the area and with living at home can easily afford the repayments.

[Deleted User]

You say you're not in your overdraft but you're paying it off.

Which is it?

If you're in your overdraft, you're telling lenders you have no spare income, and therefore cannot afford a loan.

You'll build credit history by using your card, as explained above.

sleepyjones

Would the problem be that you have a graduate account?

Are student-y accounts looked on less favourably than "normal" accounts?

Perhaps that's how the bank knew you would be declined before you even applied?

Sorry, I'm just thinking out loud here, I don't really know anything about this kind of thing

"I was trying to keep my student account as long as possible to avoid monthly charges of a 'standard' bank account."

There are plenty of accounts that do not have monthly charges, you'll only get charged if you go over your limit, have a direct debit returned etc, which would hinder your chances of getting finance anyway.

caramiacecilia

zx81 - I apologise, its probably the way I am explaining it... I have the facility of £200 in overdraft. So if I needed to, I could essentially use £200 that I dont have. But my account is always in positive - I do not use the overdraft. What I meant by paying it off is that since I have left university I have reduced the facility from £1500 to £200.