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999 credit score - but always refused loans?

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999 credit score - but always refused loans?

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JCapperJCapper Forumite
3 posts
First Post
MoneySaving Newbie
Hello, 
I've have, what Experian deem, a perfect score (999) for well over 8 years. I've never missed payments, have a mortgage and earn a well above average wage for the area i live in. Other than my mortgage (which i'm currently paying additional monthly payments off) and a credit card with just over 4k on (which has come down massively over the last year), i have no other outstanding debts. i've never been bankrupt, missed payments or had CCJ's. 
i've recently gone to buy a newish car, and after been shown as 99% chance of approval was turned down. i've re-opened my Experian account and paid for the report, there is nothing flagged as to why i've been rejected (note this is the first loan I've attempted in 6 years when i was previously rejected). All the help on Experian is about improving my credit score - how can i do this when its already 999 out of 999?
can anyone explain or help?
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Replies

  • edited 11 July at 9:49AM
    zx81zx81 Forumite
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    edited 11 July at 9:49AM
    Your score isn't used in lending decisions, so don't worry about it. 999 is a generic score for a low activity user.

    Your existing debt will be an issue, especially if interest bearing.

    You also need to check your other credit reports, as they will show different data.

    Consider also whether your income is sufficient to pass affordability of your current debt plus another loan.
  • Edi81Edi81 Forumite
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    Get a loan from Experian. 
    Oh wait, they aren’t a lender. 
    The score means nothing. What is your credit history like? Electoral register?
    Maybe try your bank for a loan. 
  • JCapperJCapper Forumite
    3 posts
    First Post
    MoneySaving Newbie
    zx81 said:
    Your score isn't used in lending decisions, so don't worry about it. 999 is a generic score for a low activity user.

    Your existing debt will be an issue, especially if interest bearing.

    You also need to check your other credit reports, as they will show different data.
    i've checked over the report, active and settled accounts are green across the board. No adverse events, no searches that effect my credit score (other than the loan i've just attempted). total credit usages is at 24% (which is marked as green?) 
    • Mortgages
    • Settled credit accounts
    • Average credit account age
    • Highest credit limit
    • Total credit balance
    • Credit account balances
    • Credit use
     all the above show no issues (according to the report). 
    I was attempting to borrow 1/3 of my yearly wage. other than the mortgage and credit card i've no other outstanding debts,
  • zx81zx81 Forumite
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    You're still not looking at the actual data. Experian's green marks aren't helpful to you if you want understand your credit worthiness.

    What are your debts, income and limits?

    What appears on each of your three files?

    The initial suspicion looks like affordability, but it's worth you taking a few minutes to check your files.
  • edited 11 July at 10:06AM
    jay1804jay1804 Forumite
    131 posts
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    edited 11 July at 10:06AM
    Loans are generally the hardest form of lending to acquire as they are unsecured, Covid-19 has made lending tighter. If you have no adverse in your history, just do an eligibility checker, apply with another lender or try car finance.
  • JCapperJCapper Forumite
    3 posts
    First Post
    MoneySaving Newbie
    debts;
    £4,300 (credit card)
    £110,248 - mortgage
    income;
    Personal - £59k
    Including wife's - around £90,000
    total limit £19k over two credit cards.
  • sourcratessourcrates Forumite, Board Guide
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    You earn 90 grand a year between you, it begs the question, why on earth do you need a loan ?
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • DrEskimoDrEskimo Forumite
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    I would have a serious think about where your money is going before committing to a £20k car on finance....

    You earn more than enough that you should have a sizeable savings pot and certainly shouldn't be dragging out credit card debt for over a year.

    I would not recommend getting £20k into debt over a car until you have a better idea of where your money is going. Wait and save up for it, then you don't have to ever worry about appeasing lenders or forking out more money to them in interest.
  • edited 12 July at 12:41PM
    MinuteNoodlesMinuteNoodles Forumite
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    edited 12 July at 12:41PM
    DrEskimo said:
    I would have a serious think about where your money is going before committing to a £20k car on finance....

    Our household income is a third of the OPs. I bought an ex-demo car last year in cash for £16k. But then again I'm not paying interest on £19k of credit card debt.
    JCapper You want to borrow a third of your annual salary but you already have a third of your annual salary and just under 1/4 of your combined income just in credit card debt so your unsecured debt level would rise to 2/3 of your sole income/ over 40% of your combined income. I would imagine a lender would look at your declared income, the amount of unsecured debt you already have, how much you intend to extend it to and fail it on affordability.
    As for the 999 score, you can be recently declared bankrupt and still have a 999 score, that's how meaningless it is.
  • dresdendavedresdendave Forumite
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    Our household income is a third of the OPs. I bought an ex-demo car last year in cash for £16k. But then again I'm not paying interest on £19k of credit card debt.

    I read it that the OP has £4.3k CC debt but a limit of £19k.
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