Loan application rejected, credit report wrong

BengalTilly

Hi. Just wondered if anyone had advise or experience on this. After doing various eligibility checkers I was receiving 90% chance of loan. I did the application and it was rejected - thought that was odd so logged into Experian.

My credit file was blank as it didn't have my current address (almost 3 years here) - there was literally no activity history. So I updated that and Experian has refreshed today putting me in the Good sector.

The loan provider said it used Experian to reach its decision so just wondered will the reject be due to the above issue. If so do I apply again (but that creates another item on the report). Or is it more sophisticated than that and it was a genuine rejection?

TIA

DullGreyGuy

Your best off speaking to the lender in question, especially as you dont say the timescales involved. Some lenders accept appeals on their lending decisions and that might be easier. Some automatically reject additional applications from the same person if within X days/weeks/months. 

Its not uncommon for lenders to do more than one check and so generally if there are two from the same lender in close succession lenders will just assume its all really one application. How close will vary by lender

BengalTilly

DullGreyGuy said:

Your best off speaking to the lender in question, especially as you dont say the timescales involved. Some lenders accept appeals on their lending decisions and that might be easier. Some automatically reject additional applications from the same person if within X days/weeks/months. 

Its not uncommon for lenders to do more than one check and so generally if there are two from the same lender in close succession lenders will just assume its all really one application. How close will vary by lender

Thanks. Was Tesco Bank and they say not to reapply within 3 months.

martinbainbridge1975

I had an issue with Tesco Bank a few years ago, similarly it was due to experian being incorrect. I appealed, sent them the proof of the errors, issued a notice of correction to experian.  Tesco then ran it through transunion and i got accepted.

advisergirl

It definitely sounds like the blank credit file with the old address was the main issue! Lenders look for stability and recent credit activity, so with no history at your current address, they likely saw it as a risk and rejected it.

Now that Experian is updated and your score looks good, you're in a better spot. You could try reaching out to the lender and explaining the situation—they might be able to reconsider without a new application. If they’re not open to that, maybe wait a few weeks before reapplying, just so it fully reflects on their end.

Or, another option is to try a different lender (or even talk to a broker), who could point you to ones that are more lenient in cases like this. Now that your profile is up to date, you’re definitely set up better for the next try!

Nasqueron

advisergirl said:

It definitely sounds like the blank credit file with the old address was the main issue! Lenders look for stability and recent credit activity, so with no history at your current address, they likely saw it as a risk and rejected it.

Now that Experian is updated and your score looks good, you're in a better spot. You could try reaching out to the lender and explaining the situation—they might be able to reconsider without a new application. If they’re not open to that, maybe wait a few weeks before reapplying, just so it fully reflects on their end.

Or, another option is to try a different lender (or even talk to a broker), who could point you to ones that are more lenient in cases like this. Now that your profile is up to date, you’re definitely set up better for the next try!

Credit scores are not a thing in the UK