Natwest approved loan and then rejected 22 September 2021 at 10:30AM in Loans 9 replies 1.9K views

sarahk09

Hi, I've never posted on here before but wondered if anyone can shed any light on this...

So , on my online banking I was told I am highly likely to be approved for a personal loan (although I would have a higher APR due to credit score).

I am really wanting to improve my score so applied online for a personal loan from Natwest for a small loan... application went through and had to sign a digi doc form and then wait...

5 days later I called them for an update, and whilst on the phone to customer service, recieved a text and an email saying it had been approved and the money would be there, hopefully, within a day. The lovely lady on the phone congratulated me and said it meant it had been approved 😊

The following day I then had another email/text saying it had been rejected!!can they do this??

In confusion, I called Natwest, where they confirmed it had been rejected and I have to now wait for a letter through the post explaining why... 

Has anyone had the same experience?

Thank you in advance...x

DrEskimo

I can't answer your question directly, but applying for a loan just to improve a score is not a very sensible idea anyway, so probably a good thing.

It's worth knowing that the score itself is a pretty meaningless number. It's just a marketing gimmick that very loosely correlates with what actually matters, and that's your credit history and worthiness. 

Far better if you just open a credit card and do your normal day to day spending on that (keep within your allocated budgets) and ensure you clear it in full every month. 

If you need to borrow money, it may be something you can do on a 0% purchase card with a introductory period. Again, just ensure it is cleared in full before the end of the 0% offer.

sarahk09

Thank you for your reply...

I probably didnt explain it too well, as I was trying to keep it brief, but I didnt apply just to improve my score, but wanted to decorate at home also, so figured I would 'kill 2 birds with 1 stone' so to speak, and get everything done together. 

I did have a long term credit card, previously, and although I was paying it off, as agreed, the card company sold the debt off with no warning, which in turn removed the card from my file and decreased my score. After this, I thought I would try an alternative route, especially as I really dont think I would get accepted for a 0% card...

I have been with natwest for 20+ years and have never had any problems with them.

I do appreciate you taking the time to reply though, thank you...

y3sitsm3

sarahk09 said:

Thank you for your reply...

I probably didnt explain it too well, as I was trying to keep it brief, but I didnt apply just to improve my score, but wanted to decorate at home also, so figured I would 'kill 2 birds with 1 stone' so to speak, and get everything done together. 

I did have a long term credit card, previously, and although I was paying it off, as agreed, the card company sold the debt off with no warning, which in turn removed the card from my file and decreased my score. After this, I thought I would try an alternative route, especially as I really dont think I would get accepted for a 0% card...

I have been with natwest for 20+ years and have never had any problems with them.

I do appreciate you taking the time to reply though, thank you...

Did it default, or was there a long-standing payment arrangement that was less than the contractual minimum?

It's not typical for debts to be sold off if they're being serviced according to the initial terms and conditions unless the lender exists the market completely.

sarahk09

I did pay a few days late, for a few months due to reasons I couldnt help, and kept in touch with them constantly regarding this... it was then agreed to pay so much a month, for 18months, which I never defaulted once on-which even shows on my credit file...

Then I recieved a letter explaining it had been passed to an agency where I would make exactly the same amount to each month. I only had 6months left to pay before clearing it.

y3sitsm3

sarahk09 said:

I did pay a few days late, for a few months due to reasons I couldnt help, and kept in touch with them constantly regarding this... it was then agreed to pay so much a month, for 18months, which I never defaulted once on-which even shows on my credit file...

Then I recieved a letter explaining it had been passed to an agency where I would make exactly the same amount to each month. I only had 6months left to pay before clearing it.

Sounds like you would have had AP markers then.

You were probably slightly better off for its (temporary) removal.  You'd likely have been refused outright for the loan otherwise.

DrEskimo

sarahk09 said:

Thank you for your reply...

I probably didnt explain it too well, as I was trying to keep it brief, but I didnt apply just to improve my score, but wanted to decorate at home also, so figured I would 'kill 2 birds with 1 stone' so to speak, and get everything done together. 

I did have a long term credit card, previously, and although I was paying it off, as agreed, the card company sold the debt off with no warning, which in turn removed the card from my file and decreased my score. After this, I thought I would try an alternative route, especially as I really dont think I would get accepted for a 0% card...

I have been with natwest for 20+ years and have never had any problems with them.

I do appreciate you taking the time to reply though, thank you...

Ah OK.

Well my advice still stands. I would personally just put what you were going to pay each month to the loan aside in a savings account, and decorate the home once you have the required money saved. Opening a credit card for your normal day to day spending and clearing in full each month will help when it comes to proving your ability to manage finance agreements.

Generally speaking, avoiding borrowing money and saving instead is a much better route, not only to minimise financial risk, but to also save money. It also means you don't need to worry about how lenders perceive you, or what your score is.

Sandtree

sarahk09 said:
 I have to now wait for a letter through the post explaining why... 

To manage expectations... the letter won't say, it'll just suggest that you get a copy of your records from the credit reference agencies.

frankglemstone

sarahk09 said:

Hi, I've never posted on here before but wondered if anyone can shed any light on this...

So , on my online banking I was told I am highly likely to be approved for a personal loan (although I would have a higher APR due to credit score).

I am really wanting to improve my score so applied online for a personal loan from Natwest for a small loan... application went through and had to sign a digi doc form and then wait...

5 days later I called them for an update, and whilst on the phone to customer service, recieved a text and an email saying it had been approved and the money would be there, hopefully, within a day. The lovely lady on the phone congratulated me and said it meant it had been approved 😊

The following day I then had another email/text saying it had been rejected!!can they do this??

In confusion, I called Natwest, where they confirmed it had been rejected and I have to now wait for a letter through the post explaining why... 

Has anyone had the same experience?

Thank you in advance...x

I've been pre-approved and then rejected couple of times
I thought it was a regular deal

sourcrates

OP, have you ever checked your credit files ?

It appears to me you may have a lot of negative information going on there.