Loan declined - first time ever

cornishman_2
cornishman_2 Posts: 6
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edited 7 October 2023 at 6:42AM in Loans
Quite puzzled to find that Tesco declined to give me a loan.   I did the MSE loan calculator on Monday and it offered me a choice of many 95% guarantee.   I applied and rejected.  I have had a loan with Tesco before and paid on time every time.   Thursday, none of the loan offers were now available.   896 credit score.  Homeowner with no mortgage, 50K plus salary, No defaults and great credit.    Weird.  I got one in the end with HSBC in under 3 mins...  Why did the other banks decide I was no longer a good prospect?

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  • la531983
    la531983 Posts: 1,680
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    edited 7 October 2023 at 7:23AM
    The three digit score is meaningless btw and not used or seen in lending decisions in the UK. 
  • sourcrates
    sourcrates Posts: 28,558
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    Just one of the many quirks of the banking system I guess, you just didn`t meet the lenders criteria on that particular occasion, the algorithms they use to determine acceptance are complex and varied, and you will never know the exact reason why you were declined.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Sometimes it happens, as said previously sometimes you just don’t meet the criteria. It’s nothing personal. 
  • Quite puzzled to find that Tesco declined to give me a loan.   I did the MSE loan calculator on Monday and it offered me a choice of many 95% guarantee.   I applied and rejected.  I have had a loan with Tesco before and paid on time every time.   Thursday, none of the loan offers were now available.   896 credit score.  Homeowner with no mortgage, 50K plus salary, No defaults and great credit.    Weird.  I got one in the end with HSBC in under 3 mins...  Why did the other banks decide I was no longer a good prospect?
    have you asked the question why, this happened with me about 3 years ago with Tesco, I rang and got someone helpful who managed to overturn the decline as Experian had out of date info, they went to Transunion and I was accepted
  • Do you shop at Asda ?  They know  :D
  • Jami74
    Jami74 Posts: 982
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     I got one in the end with HSBC in under 3 mins... 
    Don't forget to check the interest rate on the paperwork they send you. It might be different to the headline rate on the website.
    Debt Free: 01/01/2020
  • DigSunPap
    DigSunPap Posts: 375
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    I am surprised that Tesco declined your loan application given your strong financial profile. Lenders have varying approval criteria, and their decisions can depend on multiple factors, such as changes in their internal policies, economic conditions, and individual risk assessments. The decline might not reflect your overall creditworthiness but could be specific to Tesco's policies at the time of your application. It goes to show as you had no problem getting a loan from HSBC, so I wouldn't worry too much. You could always reach out to Tesco for specific reasons behind their decision, but sometimes loan rejections can occur without a clear explanation due to shifting market dynamics.
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