Good score but turned down- what now?
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littlebitconfused
Posts: 14 Forumite
Apologies for the new account but I cant access my old one!
Im applying for a loan to consolidate my credit card debt and came onto the site this morning to check out some deals. Noticed the free experian credit scoring service and thought "what the hell" so signed up and found i've got a score of 905. Great news!
Went through the links to tesco loans (which ive just paid off a 25k 4 year loan with), filled in all the info and pressed submit- then nothing but the 'dont press refresh' screen. Left it for at least 10 minutes but nothing so eventually closed the browser tab.
Though oh crap what do i do now? Best not 'reapply' to tesco so went to clydesdale, the next on the list but got turned down with no specific reason.
Feeling a wee bit anxious now so I phoned Tesco Loans where I spoke to someone who seemed to think that her career advancement was entirely based on being as snotty as possible. I think at one point she could have said "computer says no".
Back on the MSE Credit club- credit score still 905.
Where do I go from here? Have I stuffed my score by the failed application? How long should I wait till I reapply? Is it worth the appeals process at tesco which the snotty lady sneered at me to try?
Im applying for a loan to consolidate my credit card debt and came onto the site this morning to check out some deals. Noticed the free experian credit scoring service and thought "what the hell" so signed up and found i've got a score of 905. Great news!
Went through the links to tesco loans (which ive just paid off a 25k 4 year loan with), filled in all the info and pressed submit- then nothing but the 'dont press refresh' screen. Left it for at least 10 minutes but nothing so eventually closed the browser tab.
Though oh crap what do i do now? Best not 'reapply' to tesco so went to clydesdale, the next on the list but got turned down with no specific reason.
Feeling a wee bit anxious now so I phoned Tesco Loans where I spoke to someone who seemed to think that her career advancement was entirely based on being as snotty as possible. I think at one point she could have said "computer says no".
Back on the MSE Credit club- credit score still 905.
Where do I go from here? Have I stuffed my score by the failed application? How long should I wait till I reapply? Is it worth the appeals process at tesco which the snotty lady sneered at me to try?
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Comments
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Martin Lewis is guilty of promoting mystical magic number obsession among those showing an interest in their credit files.0
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How much do you earn? As a 25k loan is very high so you will need to be earning at least 60k plus to be accepted.
Do you own a home?
If Experian rate you so highly have you tried asking them for a loan?0 -
More useful people will advise you soon, I'm sure.
I could make a couple of observations though-
1. No one cares about your credit score, it has no meaning at all to lenders. What they are interested in is your income, your existing commitments and your credit history.
2. Consolidation rarely works - it's addressing the symptoms not the cause. You might be better dealing with your tendency to live beyond your means. Head over to the 'Debt Free Wannabe' forum, post a SOA and they'll help you.
P x0 -
littlebitconfused wrote: »signed up and found i've got a score of 905. Great news!
Oh dear. Winning credit score numbers this week are those ending in 2, 7 or 9 only.0 -
Wow! thank you for the quick replies. Less thanks for the sarcastic ones but I guess I cant please everyone. Such is life.
To answer some of the comments:
1- I'm lucky enough to have a high income so the payments on the loan are within my means (as evidenced by the fact that I've just finished paying my previous one off without a problem). I can pay them off monthly but the interest rate will be much higher than the 3% on offer for a loan.
2-I realise my 'credit score' is an artificial number but its guestimated by looking at all the factors you mentioned and many more, all of which are detailed in the report as good- its got all my CCs, mortgage, previous loans and much more than that on their all without problems.
3- Thanks for the general advice about debt. Believe me I'm looking closely at what comes in and out and a loan is a simple and manageable way to pay down this debt.
When I phoned Tesco I was looking for advice on what may have gone wrong on my application or if it was the failed submission that made the process fail.0 -
The loan may be within your means, but is the loan plus your existing debts within your means?
The lender will assume you will blow the new loan on Haribo and Justin Bieber t-shirts, rather than paying off the existing debts.0 -
There isn't much evidence of haribo addiction other than my waistline for them to base that on, and I I don't think a Beiber T-shirt would suit me for the same reasons. Unless they've seen my dd to the fan club..
I guess since I've just finished an identical loan (at a higher APR so higher monthly cost) I kind assumed they would see I can afford it.
The previous loan only finished in April- could that have anything to do with it? Does it take a while to show as paid off?0 -
Not only is there no such thing as a universal credit score but there's no such word as "guesstimate" either.
Your MSE credit report isn't live. It updates once a month or maybe it's once every two months. Therefore your applications to Clydesdale and Tesco won't be showing until June. You are trying to borrow money in order to consolidate existing debt so my money would be on Tesco declining you based on affordability. Yes, yes I know you think you can afford the loan but Tesco and Clydesdale probably don't agree.
Rather than consolidating try snowballing your debts and perhaps visit the Debt Free Wannabe board for inspiration.0 -
I think it would have been more useful to me had the person I spoke to at Tesco explain specifically why it was turned down- income : outgoings ratio? other debt?
My income is now probably 20% higher than it was when I got the last loan 4 years ago. Other than the credit cards my only other debt is a car loan (Which was approved when I had a lower income and already had the other loan). I've also paid off any overdrafts I had in the past since then which I would have thought would be in my favour.
I guess the rules/algorithm for successful application must have changed.
If I snowball the debts the order would be:
1-Car loan
2-credit card
3-credit card
At the moment I'm paying £380/month interest on the cards as it is. My previous loan was £600 per month which I could afford and budgeted for already so a £25k loan over 4 years would be less than £600.
(FYI- the MSE credit report updated the loan applications onto their report this morning when I went back to check again so they are fairly 'live'. Whether they are now taken into account or not I dont know.)0 -
littlebitconfused wrote: »I think it would have been more useful to me had the person I spoke to at Tesco explain specifically why it was turned down- income : outgoings ratio? other debt?
That tends to lead to applicants being a little.... creative with their applications. So they don't do that.0
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