Bad Credit?

MoneyWaster2007

Hi i have been on the experian website and got my credit score which is 971 out of 1000. i am told this is an excellent credit score, higher than 80% of the nation and that i should have no problem being accepted when applying for credit.

What i dont understand is that every time i apply to switch my loan to a bank with a lower interest rate than i am currently paying, i get refused???? i have no idea why, does anyone else???

Rafter

Your credit score with Experian is only one part of the 'scorecard' that a bank will use to assess your application. The score generally reflects your ability to manage your current credit.

Lenders will also take account of your job, how long you have been in it. How long you have been at current bank. Your postcode and the behaviour of your neighbours and whether you are a homeowner. Also whether you are on the Electoral Roll.

They will also assess whether they think you can afford the new loan in addition to your current one, as they have no guarantee you will use the new loan to pay off the older more expensive one.

That is probably the reason to be honest. They think you have enough credit already and don't want to offer more.

Post back with more details if you like (Salary, current loans and credit card balances/limits) and maybe someone can help with a strategy to get your borrowing costs down.

Good luck.

R.

MoneyWaster2007

Outstanding balance on loan= £8678. i took this loan out on 12/4/2006 over a 7 year period. was in arrears for 4 months but have been up to date with payments now for 7 months.

My basic salary per month= £920 net.

I am on the electoral role.

I have lived at my current address for approximately 9 years. I live with my parents.

Surely all of this should go in my favour when applying to switch my loan over to another bank. Confused as to why i keep getting refused??

MoneyWaster2007

I wonder if it has anything to do with the fact that i was £450 overdrawn at the time of the application?

pink_muppet

It may be because of the arrears within the last 12 months although I may be wrong