Good credit rating, no loan

Jaco70

MattMattMattUK said:

Jaco70 said:

Thanks for the replies, I’ve learned a lot, especially in relation to the CRA being unimportant.

The CRAs are important because of the data they hold, the made up ratings or scores are however totally irrlevant.

Jaco70 said:

I’m still a little unclear as to why I was turned down if the lenders DON’T have access to these details,

Potential lenders do not have access to your made up score or rating, neither do they care about them, they are marketing gimmicks created by the CRAs. Potential lenders do have access to all your existing borrowing data, utility contracts, payment records for those things, the ability to check you are on the electoral register etc.

Jaco70 said:

as I stated my actual income and my outgoings, which should have counted in my favour. 

Your "actual income" and outgoings only count in your favour if they are within the ranges, or internal risk analysis measurements of the lender. If they only lend to people earning £50k+ and you earn £49k then your actual earnings will not help. As previous posters have said non-standard incomes complicate things, some lenders do not like them, they often treat income from dividends differently to PAYE income, which the treat differently to self-employed income.

Jaco70 said:

Anyway, it wasn’t critical, and I expect my situation to improve in the next twelve months for different reasons.

Thanks again. 

Good luck with that, if you do need further information in the future there are many knowledgeable people on here who will be able to assist. 

Thanks for that, it’s very helpful.

Just to pick up on one comment, about ‘non-standard incomes’, I have had headaches with this for decades.

I find it absolutely ludicrous. I run a small limited company, take a small salary and top this up with dividends (for tax efficiency). As do almost all other small business owners I know. The fact that lenders consider this non-standard says a lot about how inflexible they are.

If they simply accessed my company accounts, it would take them seconds to check out the equity, cash at bank, direction the balance sheet is heading etc. All of which are positive. 

Nasqueron

Lenders don't want to tie themselves up in expensive risk assessment, not least because of affordability rules that can come back and bite them if they tried to assess based on your accounts when they're not qualified to do so. You could either pay yourself more and pay your taxes or perhaps talk to specialist lenders (if such a thing exists) who could use your books