Turned down for 100% Pre-Approved Loan

RoxyMontana

Hi there

I was looking for a small loan to cover a final payment on my PCP and to cover the part of my credit balance that is incurring interest, about £5000. I'm a bit bemused as I ran it through the MSE eligibility checker, and went for an option that was 100% pre-approved supposedly. As the title says, I was then turned down. I have an open offer on my credit card for a money transfer for £2500, however I won't have any contingency then for anything else that pops up, and it will take my card right to the limit. Also, I'm not sure if the amount is guaranteed. If I have a shortfall, I'm worried if I try and do further loan applications they could be turned down too, damaging my credit rating. Any advice?

Isthisforreal99

Ultimately nothing is ever 100% pre-approved on the eligibility checker as only a soft search is carried out. Only when a hard search is conducted will you get a final result.

£5000 is a relatively small amount so there is something about your credit history that is making you a risk. Could be something as too much existing debt or your level of income. Without further info it's tricky to say.

Continually borrowing money to pay off debt is never a good idea as sooner or later you run out of optiins.

Nasqueron

A soft check like the eligibility checker won't necessarily see everything needed to make a decision, a loan to pay a loan is a no-no, I would suggest using the MT card (95% is typically the absolute cap, sometimes it's 90% - including the fee) and work on paying that down as it'll be cheaper