bank denied loan for unknown reason help needed

thyfartismurder

Update: Just received a a phone call from the bank regarding the loan that was declined, there approval system was not working and was declining everyone who applied, they apologised and said i should be able to get the loan now, but i have already gone the 0% credit card route.
this probably explains why the loan sales person rudely said "youve been denied because you have bad credit goodbye" as he had probably been having trouble all morning

Hi,
basic issue:
my earlier this month I paid off and closed a loan with my bank early, and now I am trying to get a new loan from the same bank and i am being denied

context:
as a young guy with an silly expensive car I worked out that it would be cheaper to get a 1yr loan from the bank to pay my insurance in full rather then go with the pay monthly option (a few 100
cheaper) .
so now renewal time is here and 2 weeks ago I paid off my previous loan in full 1 month early to avoid having two loans at once for even a month.
this still showed in my online banking but this morning rang up my bank and they confirmed that i have paid it off in full and i should be fine to apply for a new loan.
so I apply online (for a loan that is half the amount of the one i had just closed) and it is Denied.
I ring up the number they recommend to ask why and they say "ah thats a mistake on the website, ill transfare you to a loan salesman and he will sort it out for you"
so i get transfared and go through the application with the sales man and it comes up "denied" again it try to explain what the previous person had told me but the salesman who was now quite rude just said "experian has denied you because your credit is rubbish, go on the experian website and you will see" and wont let me explain anything more.

so I check on experian and my score is 918 which should be no reason to deny me a loan of 1200 over 12 months, when my previous one was 2200 over 12 months.

after checking my credit report on karma and clear score it they showed me having poor credit and that is still owe £550 on my loan showing no payments for september where i paid the loan off in full

if been advised elsewhere that i may have to wait until all credit records show that i have paid off this loan but seeing as some are 2 months behind I cannot do that.

I will try ringing the bank again and making sure the salse person understands the issue (or just go into the branch) but i dont want to just get denied again with no explanation.
i only have a week left to pay for my car insurance so i cant wait for them to sort their poop out

Willing2Learn

The loan salesman doesn't know what he is talking about. Your Experian 'credit score' is irrelevant as it is not used by the bank when considering a loan application. You Credit Karma and Clearscore ratings are equally irrelevant.

Have you checked out an eligibility checker to see whether you could get a promotional 0% APR purchase credit card? You could pay your insurance using the card instead, interest-free.

Edit : And welcome to the forum thyfartismurder (Great username btw)

[Deleted User]

The bottom line is you're not meeting the bank's criteria. Nothing to do with the pretend scores from Experian or anyone else.

You're high risk, given the small loan that you're desperate to get They know it means you have little disposable income and will worry that you won't be able to meet repayments.

You may need to look at alternatives, such as selling things/a credit card if you an get one. Or simply pay monthly if you can't afford the premiums otherwise, but start cutting costs and saving so you're not in this position next year.

thyfartismurder

thanks for the quick reply,
yeah i wasn't impressed with him, I may go into the branch and try to sort the issue out there as it seems to be on their side.

Willing2Learn

Have you checked all the data within your three credit files for accuracy. For your Equifax and TransUnion credit reports, I recommend requesting an instant statutory report from them, as it will be a snapshot of your file instead of being a month out-of-date.

Equifax = https://www.equifax.co.uk/Products/credit/statutory-report.html

TransUnion = https://www.transunionstatreport.co.uk/CreditReport/AboutYou

foxy-stoat

thyfartismurder wrote: »

thanks for the quick reply,
yeah i wasn't impressed with him, I may go into the branch and try to sort the issue out there as it seems to be on their side.

I wouldnt waste your time. Your bank isn't going to give you a loan - move on.

thyfartismurder

Hi ZX,
I have just paid finished paying off the previous loan with the same that was twice the monthly payment of this one and paid it off early so i can meet the repayments fine and they have no reason to believe otherwise.

the current specialist insurer does not accept pay monthly and the paymonthly for my current provider has a huge interest rate which i why i went this route late year due to my age the cost of insurance is ridiculously high and it would be impractical to save that much in advance while also paying off the current insurance.
there should be no reason to deny me the loan when they approved a larger loan over the same time frame last year that i have paid off and my situation hasnt changed

thyfartismurder

foxy-stoat wrote: »

I wouldnt waste your time. Your bank isn't going to give you a loan - move on.

helpful post thank for contributing

[Deleted User]

thyfartismurder wrote: »

Hi ZX,
I have just paid finished paying off the previous loan with the same that was twice the monthly payment of this one and paid it off early so i can meet the repayments fine and they have no reason to believe otherwise.

But they do. The market has moved considerably since your last loan.

The size of loan is a warning sign to most lenders. And don't forget the reduced profitability on that level of risk.

Gaz83

You might not like it, but it's true.

No-one has a right to credit. A lender can choose to do business (or not) with anyone.

Maybe their lending criteria has changed, so that the level of risk that was acceptable to them last year isn't the same as what it is just now.

foxy-stoat

thyfartismurder wrote: »

helpful post thank for contributing

Thanks, but do try another bank, or go for a credit card and balance transfer once you pay for your insurance.