Declined for loan and confused
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Hello all!
Was wondering if anyone could give me an idea as to why possibly I may have been declined, ok so I wanted to buy an engagement ring seeing as they had 0% finance I thought I would rather have the cash in my account getting a tiny amount of interest than not so thought why not and applied for £1800. After being referred it was declined…I was actually shocked by this a year ago I had a loan with the same lender Hitachi whom I paid without a single issue for 4 times the amount I was asking. I have never missed a payment on anything i.e credit card,car finance or phonebills. My wages and rental income work out to be 45k a year my credit cards are 3.8k on one which is 0% I pay off £200 a month and 0 on the other but has a limit of 7.25k the other one has a 7k limit.
Could my card I don’t use be the cause of this? I have read that you should cancel unused cards but other sources say a long standing well managed card is a good thing so not sure what to do. In the end I bought the ring outright anyway so wasn’t a issue just a bit of a shock
Was wondering if anyone could give me an idea as to why possibly I may have been declined, ok so I wanted to buy an engagement ring seeing as they had 0% finance I thought I would rather have the cash in my account getting a tiny amount of interest than not so thought why not and applied for £1800. After being referred it was declined…I was actually shocked by this a year ago I had a loan with the same lender Hitachi whom I paid without a single issue for 4 times the amount I was asking. I have never missed a payment on anything i.e credit card,car finance or phonebills. My wages and rental income work out to be 45k a year my credit cards are 3.8k on one which is 0% I pay off £200 a month and 0 on the other but has a limit of 7.25k the other one has a 7k limit.
Could my card I don’t use be the cause of this? I have read that you should cancel unused cards but other sources say a long standing well managed card is a good thing so not sure what to do. In the end I bought the ring outright anyway so wasn’t a issue just a bit of a shock
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Comments
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Have you moved home recently? Are you on the electoral roll?
I would get copies of your credit files to ensure they are accurate.0 -
I am in shock just reading your post. You have income of £45k but need to borrow £1800 for a ring. However that said may be worth contacting one of the card companies you have an account with and see if they can do anything.
I did this with Lloyds cards and they let me swap my card for another one and that gave me 24 months interest free on purchases. Also if you hold a Halifax card may be worth speaking to them. I rang to cancel and they gave me 12 months interest free. The possibilities are endless.0 -
I am in shock just reading your post. You have income of £45k but need to borrow £1800 for a ring. However that said may be worth contacting one of the card companies you have an account with and see if they can do anything.
Read the OP. He had the money but just thought he would keep it in savings earning interest and spread the cost. Perfectly acceptable as 0%
OP
Check your credit record to make sure there is nothing untoward on it via Noddle . If you are on the electoral roll and have not moved and had no adverse credit history I am surprised too especially as Hitachi have lent to you before. It may just be you do not fit their lending criteria.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0 -
thank you all for the reply, yes checked Noddle and nothing dodgy on there at all everything shows as up to date , I am on my electoral role also. Its really a mystery to me but as I would've thought being as I paid a bigger loan they would value me as a customer. Not a huge deal was just curious:]0
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They may simply have reached their lending criteria for the month. Nothing sinister; they're not going to make any more 0% loans than they need to.I used to think that good grammar is important, but now I know that good wine is importanter.0
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Weirdly I got an email today telling me the loan has been approved.... after nearly 2 weeks very odd I knew something wasn't right0
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Weirdly I got an email today telling me the loan has been approved.... after nearly 2 weeks very odd I knew something wasn't right
The refusal might have been made by " the computor says no " and the approval by a human beingITS NOT EASY TO GET EVERYTHING WRONG ,I HAVE TO WORK HARD TO DO IT!0 -
Could be they met their lending target for January, and want the loan on the book for Feb.0
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Yes it sounds like they wanted it approved in February to meet targets. You don't need it now do you?I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0
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been mulling it over this weekend , I could refund the ring and get the finance as its 0% but not sure if I can be bothered with the hassle0
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