Halifax loan question

sitting_sammage

Hi all,

Newbie here with a quick question that might sound a bit stupid so apologies in advance!

I had a lot of credit troubles in my early twenties that lead to a lot of defaults, but they’re all paid off and dropped from my report around 2 years ago. My credit has been good since, I’m at 20% credit utilisation on my cards, paying more than the minimums each month.

The only blip is I’m using my overdraft fairly regularly while I finish getting my credit card balances down. Anyway, I’m looking at taking out a loan and thought I would try my bank, Halifax, who I’ve banked with for 14 years, but the calculator stops me straight away and says I’m unlikely to be approved and the same with their credit cards.

Long story short, as I’ve banked with Halifax for so long could they be using old data to score my application from my account history? My credit report looks great, but my options with my bank just don’t reflect it.

[Deleted User]

They can use internal data, as well as CRA data.

However, the problem is more likely to be affordability, with carrying revolving debt, particularly if it's interest bearing. Being in your OD is also bad news.

Check all three of your credit files to see what appears on each - it sounds as if there's some work to be done. Then work on clearing down the existing debt before applying for more to reduce the risk you pose.

DCFC79

sitting_sammage wrote: »

Hi all,

Newbie here with a quick question that might sound a bit stupid so apologies in advance!

I had a lot of credit troubles in my early twenties that lead to a lot of defaults, but they’re all paid off and dropped from my report around 2 years ago. My credit has been good since, I’m at 20% credit utilisation on my cards, paying more than the minimums each month.

The only blip is I’m using my overdraft fairly regularly while I finish getting my credit card balances down. Anyway, I’m looking at taking out a loan and thought I would try my bank, Halifax, who I’ve banked with for 14 years, but the calculator stops me straight away and says I’m unlikely to be approved and the same with their credit cards.

Long story short, as I’ve banked with Halifax for so long could they be using old data to score my application from my account history? My credit report looks great, but my options with my bank just don’t reflect it.

What kind of figures are we talking about ?


At a guess I would agree with zx81 and say its down to affordability.

Clive_Woody

If the credit troubles and defaults were with Halifax then applying at your own bank might not be the best plan. You mention that these defaults have dropped off your credit file, but Halifax may still have details on file internally so would decline to loan you money.

As others have mentioned, it might be down to affordability. How much do you earn and how much do you want to borrow?

Leaving a running balance on credit cards is also not a good idea. Pay these off in full every month.