My credit rating

wanoennogs

I was refused a loan today. I need to get dental implants. Due to severe bone loss in my upper and lower jaw dentures are a problem. The dental company checked to see if I could get a loan from the finance company they use and I was refused the loan. The rate was 5.6%.

I work part-time. I also get PIP and disability working tax credits. I rent a flat from a housing association. I have lived at the same address for the last 12 years. I don’t have a credit card.

The dental coordinator said the finance company they use may have only taken into account my part times wages and not the PIP and disability working tax credits. He said that may be the reason for being refused the loan. The monthly repayments would have been £266 which is affordable for me. The dental coordinator asked if I have any debt or bad credit history which I don't. He suggested checking my credit rating and also asking my personal bank for a loan. 

Before I ask my bank (HSBC) for a loan I want to make sure my credit rating is as good as it can be.

I checked my credit rating with Experian. I have some questions which I hope I can find the answers to here.

My credit rating is good. My score is 956 out of 999. I am 5 points from a perfect credit rating.

I have 1 negative influence. No settled credit accounts.

I have 4 positive influences – Average credit account age, total credit balance, credit account balances, and credit applications.

It shows 2 active accounts. They are my banking account and my mobile phone account.

I can also add to what Experian told me I have no outstanding debt. I have never been bankrupt. I don't have a bad credit history.

My questions are 

1) On Experian it only shows 2 active accounts. My banking account and my mobile phone account. Should it show more accounts such as my broadband, water rates, etc?

2) It says my credit rating is good. My score is 956 out of 999. I am 5 points from a perfect credit rating. Is there anything I can do to improve my credit rating?

3) The dental coordinator thinks the finance company they use may have only taken into account my part times wages and not taken into account my PIP and disability working tax credits. If I apply for a loan from my bank (HSBC) would they only take into count my part times wages and not take into account my PIP and disability working tax credits?

4) Is there anything else I can do to increase my chances of getting a loan from the HSBC?  I know I can afford the repayments.

Thanks.       

.

 

kaMelo

Forget your credit score and all the "positive" and "negative" influences that Experian talk about. Unless and until Experian become a lender their opinion is irrelevant.  
Assuming you have no defaults/missed payments/AP markers on your credit file it is highly likely the dental co-ordinator is correct, you failed the affordability check with the lender who may have only included your income. Some lenders do include benefits when working out affordability but it's certainly not universal. Contrary to what might seem logical, including benefits when working out affordability makes the loan higher risk.

How much are we talking here, tens of thousands for full set(s) or three of four thousand for a couple of teeth?
As opposed to a loan you could save up if it's the latter, the former may take a while.

sourcrates

The credit reference agencies have been drip feeding the public this rubbish for ages, they are just giving an opinion, like anyone else can do, your refusal for credit shows just how meaningless your "perfect credit score" actually is doesn't it, remember they are a business that requires traffic to their respective websites, in order to generate income. 

So to facilitate this, they spin you a yarn, do this to improve your score, do that to improve your score, the best I`ve seen is the "instant score improver" Experian try to sell you, absolute tosh, no one ever see`s your imaginary credit score, certainly not lenders, only you.

I`m sorry you didn`t get your finance, it was probably because your income is too low, every lender has different lending criteria, it`s impossible to cater for every factor they will check, you just have to be as honest as you can, and roll the dice.

wanoennogs

Thank you for your replies. They are very helpful.

EdwardB

I would not bother with the Dental implants, experience from friends tells me that they are a total con.

Save for them and get them in Europe if you must.

The likely reason for not being approved is your salary or the fact that you have no credit to speak of.

MalMonroe

Hi, would you be eligible for Help With Health Costs? You should be if your dental treatment is essential for health rather than cosmetic reasons and you are on a low income.

You can complete the form online. I'm not on any benefits but my income is low and I've been granted partial help with healthcare costs. (Income not quite low enough for full help). If your income is really low you may qualify for all dental costs. Of course your dentist needs to be an NHS one.

See if you are eligible -

https://www.nhsbsa.nhs.uk/check-if-youre-eligible-help

If you don't have a credit card then your credit reports have nothing really to report about you and that can put lenders off. Also, if your income is low, that will put lenders off. And the credit rating score isn't ever seen by anyone else but you.