Loan rejected

lopsyfa

cassandcharlie said:

I used the Experian credit score checker to see what loan I could get. Credit score shows 999/999 and 90% chance of getting loan with TSB. Applied and was rejected saying that the credit report said no loan available. I want to borrow 20k to pay off existing car loan and use balance to buy replacement car. Now worried to apply to another bank incase rejected again. Any ideas why this has been rejected?

Why do you need to borrow to buy another. If you pay off existing car loan, won't you then own the car and can either keep that car or sell it to buy the one you want. The solution is probably to reduce the amount you want to borrow.

MinuteNoodles

cassandcharlie said:

 And it’s based on a credit score anyway, not someone’s interpretation of events. And my credit score is excellent, which is why the rejection makes no sense.

LENDERS DO NOT USE THE CREDIT SCORE THAT THE CREDIT REFERENCE AGENCIES GENERATE FOR YOU TO SEE. Lenders create their own using their own secret internal algorithms which is why a 999 score means nothing. In fact 999 scores are so meaningless that even bankrupts can have them.

DCFC79

OP you say car loan so is the finamce on the car or is it a loan you took out independant of the car ?

If the first one you can sell it as it is, might even be able to do an exchange, if its just a loan so you can sell it when you like.

Grumpy_chap

cassandcharlie said:

I used the Experian credit score checker to see what loan I could get. Credit score shows 999/999 and 90% chance of getting loan with TSB. Applied and was rejected saying that the credit report said no loan available. I want to borrow 20k to pay off existing car loan and use balance to buy replacement car. Now worried to apply to another bank incase rejected again. Any ideas why this has been rejected?

So, it is quite hard to interpret the information shown on the credit score sites.  When I look at the free-access Experian site, they provide:

• A credit score, which is explained as how much you follow the rules on any past credit you have - missed payments, over limit etc.  The credit companies do not see this score but do see the data from your report that Experian have used to give you the score
• Affordability, which is explained as how much spare money you have each month.  For me, this always shows very low, but I do not know why.  I cannot see data relating to affordability in the more detailed report and I am not sure how CRAs get information about affordability, but if you apply the credit company will have as they normally ask you.
• % chance of getting each type of card, which presumably looks at the above two and then how each lender normally works and tries to make a guess as to whether you will or not get each different product.

harrier2

I applied and was approved for a loan, signed the documents they emailed and waited for the loan. The following day they said the loan was rejected. So now I have a credit search on my file. If they had made the proper decision before processing it further it would have been only a soft search. Be warned!

DCFC79

harrier2 said:

I applied and was approved for a loan, signed the documents they emailed and waited for the loan. The following day they said the loan was rejected. So now I have a credit search on my file. If they had made the proper decision before processing it further it would have been only a soft search. Be warned!

Maybe information wasn't available on a soft search that was on the full application.