Is my credit rejection an error?

CliveOfIndia

arsenalboy said:

Okay, I think I have been reassured by the comments on here but am curious to find out why I was rejected. I know my credit rating is A1 which is confirmed by Experian and want to know what Creation have against me. I will enquire of them but not request an enquiry.

These two statements are sort of interlinked.  Experian may rate you as "Excellent", but they aren't the ones lending you money, so it matters not one jot what they think of you.

All lenders have their own internal scoring algorithms.  These will assign different weighting to different data points (for example, one lender may have an algorithm which gives you minus 25 points for every default, minus 10 points for every late payment.  Another lender may not penalise late payments at all but will assign minus 100 points for a default).

It's important to realise that these scores are internal, and bear no relation whatsoever to the generic score dished out by the CRAs.  They take the raw data from the CRA, feed it though their algorithms, and decide whether or not they want you as a customer.

Each lender will have different algorithms, and also different target customer profiles.  Their lending criteria are confidential and commercially sensitive, so they will never tell you precisely why you have failed their internal check.  This is also the reason why there cannot be a one-size-fits-all score, despite what the CRAs would like you to believe - each lender's criteria is different, and even the CRAs don't know what those criteria are.

molerat

I suspect the reason for the decline is the lack of much previous credit use.  Does that credit card get much put on it each month ?

arsenalboy

molerat said:

I suspect the reason for the decline is the lack of much previous credit use.  Does that credit card get much put on it each month ?

Up to 5K per month and paid in full each month.

bluelad1927

la531983 said:

The only actual ground you MAY have a valid point here on is the fact Experian told you that you would 100% get this credit, however I suspect if you read the small print they will have covered their backs with that one.

But they didn't say they would get this credit from this lender. Its the lenders criteria that needs to be satisfied, and they all differ

arsenalboy

All lenders have their own internal scoring algorithms.  These will assign different weighting to different data points (for example, one lender may have an algorithm which gives you minus 25 points for every default, minus 10 points for every late payment.  Another lender may not penalise late payments at all but will assign minus 100 points for a default).

This is why I am confused as my credit history has absolutely no negatives, never ever. There is nothing to mark me down on. The only thing I can think of is age i.e., I am 73, perhaps they dont think I will make the 2 year term to 75!