Suddenly unable to get a loan and not sure why? A few weeks ago I was able.

I need a loan for £25k - a few weeks ago most of the sites said I was eligible but I never applied.   But now, almost all lenders say I am not eligible.   Why could this be?    One thing I think that caused it is that a few weeks ago I properly applied for a loan which I chose not to proceed with (as the interest as a lot higher than advertised) so I assume this ran a hard search on my credit file.

I've checked Clearscore and I have a score of 979 which I think is good?   And there is no mention of the hard search.   So why am I now currently unable to get a loan when a few weeks ago I was able?   

Any help would be greatly received.   Thanks.

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Your 979 score doesn't mean anything, Lenders assess you for risk based on your history and circumstances. Check all three of your files to see what appears on each.

    Generic eligibility checkers are not a great tool - try a lender's own eligibility checker to get a better idea. But 'needing' a 25k loan is already into high risk area.
  • Ebe_Scrooge
    Ebe_Scrooge Posts: 7,320 Forumite
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    I have to agree with the above - eligibility checkers are at best a rough guide as to your chances of acceptance.  Also, £25K is pretty much at the upper end of what most lenders will consider on an unsecured basis.
    The key question though - as alluded to by ZX81 - is why do you "need" the loan?  "Need" is very different to "Want" - if you can give a little more information as to the purpose of the loan, we may be able to offer some alternative suggestions.
  • j0nnyguitar
    j0nnyguitar Posts: 7 Forumite
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    Thanks for the advice guys.   I checked my reports and there was nothing really an issue so I took a punt, and was accepted no problem even though the same lender's checker said otherwise.   All good.  
  • prowla
    prowla Posts: 13,144 Forumite
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    Some lenders are weird.
    I have a mortgage, a car loan, have had completed car loans previously, have been at the same address for years, never had a default, a CCJ, etc., have had the same credit cards for years, never been late for utility bills, earn a good wage, my Money Club (Experian) score is 999, and so-on.
    Yet, I've applied for a couple of loans via Barclays and they've been refused; one was for an Apple phone and the other for an Amazon item I though would be easier to pay interest-free (I'd completed one via their previous lender perfectly alright).
    I've no idea why they do it, but it is a bit annoying.
  • phillw
    phillw Posts: 5,593 Forumite
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    The recent bank of england base rate increase might affect their decisions, or maybe they are reducing risk because of inflation.

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    I need a loan for £25k 
    An unsecured loan at this level is beyond many lenders risk appetite. What's the intended use of the funds ? 
  • penners324
    penners324 Posts: 2,701 Forumite
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    Multiple loan applications in fairly short period of time is quite detrimental to your credit history as well
  • Multiple loan applications in fairly short period of time is quite detrimental to your credit history as well
    100% spot on this, I had 2 car rejections last march and the 4 car finance applications in a short period had a negative effect on my eligibility for other credit accounts.

    personal loans over 25k appear to be rare, there is the odd one goes to 35 from what I read on another post
  • Ebe_Scrooge
    Ebe_Scrooge Posts: 7,320 Forumite
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    Multiple loan applications in fairly short period of time is quite detrimental to your credit history as well


    personal loans over 25k appear to be rare, there is the odd one goes to 35 from what I read on another post
    This is largely correct - 25K is pretty much the limit for most lenders.  Yes, you may find the odd one that'll lend more, but 25K is the "generally-accepted, rule-of-thumb" maximum.

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