Internal Credit Check
Lingtheling
Posts: 3 Newbie
Hi,
I wonder if anyone can help.
I've just tried to make a substantial purchase from a high street shop today on a buy now pay later deal. I wanted to do this for the convenience of it. My application to creation.co.uk was declined.
I've come home checked my Equifax account. My credit score is in the 'excellent' zone.
I have no major debts. A mortgage. A small credit card. I have a good job with a regular income.
I've called Creation to be told that they have declined my application based on 'internal credit checks'. I've asked them to explain what this means. They've declined to explain to me what they are looking at, and how they've come to their decision. Explaining only that they have 'internal criteria', but they are no obliged or willing to explain beyond this.
I'm ok about it... but I'm concerned that this is something that is stuck to my future searches. It is likely that in the next year or two that I will be aiming to take out a small loan for a large house purchase.
Can any one shed any light on what an 'internal credit check' actually might mean.
Many thanks
LL
I wonder if anyone can help.
I've just tried to make a substantial purchase from a high street shop today on a buy now pay later deal. I wanted to do this for the convenience of it. My application to creation.co.uk was declined.
I've come home checked my Equifax account. My credit score is in the 'excellent' zone.
I have no major debts. A mortgage. A small credit card. I have a good job with a regular income.
I've called Creation to be told that they have declined my application based on 'internal credit checks'. I've asked them to explain what this means. They've declined to explain to me what they are looking at, and how they've come to their decision. Explaining only that they have 'internal criteria', but they are no obliged or willing to explain beyond this.
I'm ok about it... but I'm concerned that this is something that is stuck to my future searches. It is likely that in the next year or two that I will be aiming to take out a small loan for a large house purchase.
Can any one shed any light on what an 'internal credit check' actually might mean.
Many thanks
LL
0
Comments
-
If they've used the term correctly, it means you've failed one of their criteria before they went for an external credit check.
It could be anything, including demographics, but they won't reveal their criteria to you.
Separately, you should check your three credit files, Ignore all of the scores - focus on the data to make sure that everything is in order.0 -
Mmmm...
It is very vague. I find the secrecy around it quite un-nerving!
I've got an Equifax account, which is all looking ok. The score is good... and the data I think is good.
Can you explain zx81 what you mean by 3 credit files... and what should I look for in terms of the data...
LL0 -
There are three different Credit Reference Agencies (CRAs). They will all hold data on you relating to your management of credit accounts. It is the data held by the three CRAs that you need to check. The score is irrelevant. It is the data history that is important.
So, for Experian for example, the data you need to check for accuracy within the following fields:- Personal Information
- Credit Balance
- Credit Accounts
- Rental Information
- Search History
- Financial Associations
- Linked Addresses
- Electoral Register
- Aliases
- Public Record Information
- Corrections & Queries
- Raised Queries
- Cifas
I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job
0 -
Great answer - thank you.
Most of that should be all good on my account as I could think of 'adverse' readings.
I currently own my house, but was renting 2+ yrs ago... might that be viewed awkwardly. For the same reason my electoral roll information hasn't been stable until recently...0 -
They probably just don’t want you as a customer - you might not fit the criteria they are looking for.
They’re also not obliged to release their lending criteria to joe public.
Ignore the scores on your Equifax and other CRA accounts0 -
Creation can be a bit odd sometimes. I applied for a Currys/PCworld account and was declined. I tried again 6 months later and was accepted. Nothing had changed in my credit file. I really wouldn’t worry to much.0
-
It is, I agree. But there's not much anyone can do about it.Lingtheling wrote: »It is very vague. I find the secrecy around it quite un-nerving!
Imagine a scenario where in the past they have found that people whose name begins with an "L" often don't repay their loans.
This information wouldn't go on your credit file (only the other people's who failed to repay) but is kept as internal data.
If they published this fact then you may well have applied in a partner's name. You'd get through the check but still be a risk to them because you only tweaked the application because of the published rules. So they need to keep them confidential.0 -
I foresee in the not too distant future EU or UK rules will come in so they have to say why they declined you. on which criteria you didn't match or meet. I hope so anyway. Seems a bit unfair they don't tell you.0
-
Can't see it myself. It's a business decision.I foresee in the not too distant future EU or UK rules will come in so they have to say why they declined you. on which criteria you didn't match or meet. I hope so anyway. Seems a bit unfair they don't tell you.
Plus, if they start advising people why they've been declined, then it will lead to people tailoring their applications to avoid refusal for those same reasons."Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0 -
Based on my experience, it all boils down to internal credit checks, i.e. lending criteria the lenders use to decide if they will lend to you or not.
I agree that it can be frustrating because they never reveal the details of such criteria, as has been pointed out.
This is why I use loan or credit card comparison sites and I try to build relationships with lenders / credit card companies.
I have been offered credit limit increases, loans, etc when my external credit profile / score was not great.
Hope this helps!0
This discussion has been closed.
Categories
- All Categories
- 343.1K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.2K Work, Benefits & Business
- 607.9K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards