Bank Credit rating

Neelie_there

Hey.  Has anyone got any ideas?  I've been with my bank for almost 40 years.  For some bizarre reason they have suddenly dropped my credit score significantly.   This is despite the fact that I currently have large amounts of savings.  Have recently paid off my mortgage.  No outstanding payments on credit cards or any loans.  I own my own house outright and am earning more than I have throughout my life due to career changes.  Up to now I have always been considered an excellent and have always advised I could have personal loans way in excess of what I could have afforded to pay back at that time. I have often used personal loans to borrow for home improvements prior to selling a property and then paying those personal loans back.  However, I am currently being told "we are unlikely to approve you for a loan at this time".  There was a note on my account that to put myself on the electoral register would improve my credit rating. I have been on the electoral register for a year now!   However, I have tried to remedy this twice by sending photographs of the confirmation of being on the electoral register and by actually posting the proof directly to the credit reference agency they use.  I'm so cross. I'm so fed up.  Waiting to finish off the house and get it sold!!!  When speaking to the bank the answer is ' "you need to appeal to our loans team and you can only do this in writing'.  Would you like the address to write to them?"  My response is to say stuff it, I"ll change banks.  But will that make things temporarily worse?  

Hoenir

How much are you looking to borrow for "home improvements" ? If you've large amounts of savings why the neccessity to borrow anyway. 

Nasqueron

Credit scores aren't real, no lender ever sees them, lenders take the data on file only and use their own scoring systems

Do complain to the CRA though if your data is inaccurate as you don't want to lose deals if their records are wrong

CliveOfIndia

Neelie_there said:

I've been with my bank for almost 40 years.  For some bizarre reason they have suddenly dropped my credit score significantly.

The CRA may have dropped your score, but that means nothing as it's not even seen by a lender.  You'll never know how your bank scores you internally, as that information is proprietary and highly confidential.

Neelie_there said:

This is despite the fact that I currently have large amounts of savings.

Savings are never taken into account when making a credit application - this is true of all lenders.

As per the previous comments, yes you should get the CRA to correct any information which is factually inaccurate.  But I have to also agree with the other comment - it seems somewhat counter-productive to be taking out a loan if you have the cash available.  Unless your savings are earning you more than what a loan would cost, which seems fairly unlikely.

Neelie_there

I want to borrow, short term, a larger amount than I have in savings to complete the property.  I've done this loads of times and never had a problem.  It just irks me that large corporates and their obscure scoring system can impact your life so much.  

Hoenir

Neelie_there said:

I want to borrow, short term, a larger amount than I have in savings to complete the property.  I've done this loads of times and never had a problem.  It just irks me that large corporates and their obscure scoring system can impact your life so much.  

Perhaps this time it is a problem. Given the amount involved. Not something the lender will entertain on an unsecured basis. 

CliveOfIndia

Neelie_there said:

It just irks me that large corporates and their obscure scoring system can impact your life so much.  

The alternative viewpoint, of course, is that credit is a privilege not a right.  I know in the modern day and age people tend to take access to credit for granted, but it wasn't always the case.  It's not so long ago that access to credit was reserved for the very few, most ordinary folk had to save up if they wanted something.

I'm not "preaching", by the way, and I hope it doesn't come across as such.  More just trying to put things into perspective.

sourcrates

There is no automatic right to credit no matter what your credit file says or how long you have been with a particular bank, at the time you make the application to borrow money you simply either fit the banks lending criteria, or you don`t.

How do you know how the bank credit scores you???

The number you see on your credit report is conjured up by the credit reference agency, not your bank, no lender ever see`s your fictitious credit score.

A lenders criteria for borrowing is often complex and the algorithms used vary over time depending on what market the bank wishes to target, you may qualify for a loan one week, but not the next, all depends on what strategy they are following week by week.