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    • dc1980
    • By dc1980 17th May 19, 3:23 PM
    • 20Posts
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    dc1980
    Declined by Tesco, going to the bank
    • #1
    • 17th May 19, 3:23 PM
    Declined by Tesco, going to the bank 17th May 19 at 3:23 PM
    Hi all

    My wife and I made a joint application for a 35k loan from Tesco for home improvements and were declined, despite both having excellent and good Experian scores.

    We had both recently moved some CC debt onto new 0% interest cards so the fact that we opened these fairly recently may have been a factor. Experian also told me that having below 15k CC debt would look better, which I have, but it's not up to date on my report yet, annoyingly.

    My question is should we wait 3 months before applying anywhere else or are there lenders who would potentially lend before that time period elapses since the Tesco decision?

    We have building work ready to start and a reasonable pot to begin with but will need the loan to get over the finish line.

    From an affordability P.O.V, I can show all income and outgoings leaves me with circa £900 head room even if I was paying a £700 repayment amount each month. That's purely on my budget without adding my wife's income. I have an appointment at my bank (Lloyds) next Friday to show them my figures.
Page 1
    • zx81
    • By zx81 17th May 19, 3:25 PM
    • 22,122 Posts
    • 24,136 Thanks
    zx81
    • #2
    • 17th May 19, 3:25 PM
    • #2
    • 17th May 19, 3:25 PM
    Try somewhere now. If declined, leave it a few weeks before re-applying.

    Have a look at your three credit files to see if there is anything else lurking there, or if it is just the level of debt you're carrying. Disregard the scores that any of the CRAs give you as they don't reflect lender criteria in any way.
    • spadoosh
    • By spadoosh 17th May 19, 3:28 PM
    • 6,699 Posts
    • 9,652 Thanks
    spadoosh
    • #3
    • 17th May 19, 3:28 PM
    • #3
    • 17th May 19, 3:28 PM
    If youve recently switched credit cards have you made sure you closed the old accounts?

    You could be making the available credit to you look more than it actually is which will effect how much theyre willing to lend. Plus it can take a few months for the credit reference agencies to update account details and balances.
    Don't be angry!
    • dc1980
    • By dc1980 17th May 19, 3:30 PM
    • 20 Posts
    • 1 Thanks
    dc1980
    • #4
    • 17th May 19, 3:30 PM
    • #4
    • 17th May 19, 3:30 PM
    Thank you. Tesco did say that the amount of available credit could be a factor. One card, which I've paid down to less than 2k and may well get rid of in a month, had a limit of £13k, and all told I alone had available a total of nearly 30k, so I've slashed the limit on that big one down! I do see how they can see that as an extra layer of risk.
    • dc1980
    • By dc1980 17th May 19, 3:32 PM
    • 20 Posts
    • 1 Thanks
    dc1980
    • #5
    • 17th May 19, 3:32 PM
    • #5
    • 17th May 19, 3:32 PM
    Thanks, will take a look at the other two - is it Equifax and Clearscore I should look at?
    • zx81
    • By zx81 17th May 19, 3:34 PM
    • 22,122 Posts
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    zx81
    • #6
    • 17th May 19, 3:34 PM
    • #6
    • 17th May 19, 3:34 PM
    Clearscore and Noddle. But make sure you also checked the data on Experian.

    It was probably a mistake to slash the limit on your card, but what's done is done. Leave your other limits alone, as 30k wasn't particularly high, if your incomes are reasonable.
    Last edited by zx81; 17-05-2019 at 3:39 PM.
    • dc1980
    • By dc1980 17th May 19, 3:51 PM
    • 20 Posts
    • 1 Thanks
    dc1980
    • #7
    • 17th May 19, 3:51 PM
    • #7
    • 17th May 19, 3:51 PM
    One other question. If I were to decide to apply elsewhere now, Experian's loan matcher threw up Rate Setter as 100% chance of approval. Does anyone have experience of this lender's application process?
    • dc1980
    • By dc1980 17th May 19, 3:53 PM
    • 20 Posts
    • 1 Thanks
    dc1980
    • #8
    • 17th May 19, 3:53 PM
    • #8
    • 17th May 19, 3:53 PM
    Yeah, I did it on the back of what Tesco told me when I rang them for further info as to why we were declined, but I suspect I would have been better off leaving it as was!
    • Sncjw
    • By Sncjw 17th May 19, 4:50 PM
    • 2,125 Posts
    • 1,280 Thanks
    Sncjw
    • #9
    • 17th May 19, 4:50 PM
    • #9
    • 17th May 19, 4:50 PM
    What are your incomes it maybe your current income to debt ratio causing problem
    • dc1980
    • By dc1980 17th May 19, 6:10 PM
    • 20 Posts
    • 1 Thanks
    dc1980
    What are your incomes it maybe your current income to debt ratio causing problem
    1. 57,200 plus 10-15% annual bonus
    2. 45,000
    • Ben8282
    • By Ben8282 17th May 19, 7:43 PM
    • 2,991 Posts
    • 1,577 Thanks
    Ben8282
    We had both recently moved some CC debt onto new 0% interest cards so the fact that we opened these fairly recently may have been a factor. Experian also told me that having below 15k CC debt would look better, which I have, but it's not up to date on my report yet, annoyingly.
    Originally posted by dc1980
    This could well be the cause of the problem. If your credit files are showing in excess of £15k credit card debt, even if at 0%,that doesn't really look good to the loan provider.
    I agree that it was a mistake to reduce your credit card credit limit both in the sense of the higher credit limits you have the more trusted you appear and by reducing this credit limit you are increasing the utilisation % of your credit cards.
    • dc1980
    • By dc1980 19th May 19, 1:59 PM
    • 20 Posts
    • 1 Thanks
    dc1980
    The thing is, Tesco told me on the phone that the large amount of available credit could have been factor in determining not to lend to us because of the risk of racking up all of that CC debt. Swings and roundabouts I suppose. I'll leave the other cards' limits where they are.
    • dc1980
    • By dc1980 20th May 19, 1:37 PM
    • 20 Posts
    • 1 Thanks
    dc1980
    Thanks for all the advice on here everyone. I have now completed my Self Assessment for 2018/19 and the tax man owes me a chunk that I will use to bring my CC debt down to below 6k overall, still with 18k available credit across the three cards. I am hoping once this is represented on my credit reports I might be looked upon more favorably!

    I know I can handle the loan we need from an affordability point of view.

    Does anyone have any tips on how to speed up changes to credit reports? It's very frustrating that it is currently showing me as having 18k owed on CCs when it's actually less that 12k right now.
    • zx81
    • By zx81 20th May 19, 1:41 PM
    • 22,122 Posts
    • 24,136 Thanks
    zx81
    You can't speed up the reporting - lenders will report on their normal cycles.

    But remember that you don't see a real time report.
    • DCFC79
    • By DCFC79 20th May 19, 3:22 PM
    • 34,231 Posts
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    DCFC79
    Need patience, the home improvements can wait.
    • Bermonia
    • By Bermonia 20th May 19, 4:23 PM
    • 673 Posts
    • 508 Thanks
    Bermonia
    Different providers report on different days and different agencies update on different days... could well take 2 months to change on file
    • Clive Woody
    • By Clive Woody 21st May 19, 10:07 AM
    • 4,684 Posts
    • 5,275 Thanks
    Clive Woody
    If you have cc debt of £10k that has been bounced around various 0% cards for some time without being repaid then lenders may be wary of lending another £35k on top of this. As mentioned the other concerns may be around the level of currently available lending in excess of what you already owe.

    Could you structure these home improvements into smaller projects and just borrow enough to get the priority work done, repay those loans, then look for additional borrowing?
    "We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein
    • dc1980
    • By dc1980 21st May 19, 9:28 PM
    • 20 Posts
    • 1 Thanks
    dc1980
    If you have cc debt of £10k that has been bounced around various 0% cards for some time without being repaid then lenders may be wary of lending another £35k on top of this. As mentioned the other concerns may be around the level of currently available lending in excess of what you already owe.

    Could you structure these home improvements into smaller projects and just borrow enough to get the priority work done, repay those loans, then look for additional borrowing?
    I should be able to get the CC. debt down to about £5k soon and we do have £18k in the bank towards the building project so we will chat to the builder and see what sort of payment schedule he can offer us, as well as perhaps stage it to get us as far as that cash will allow! If we can get going on that cash and then apply for finance once the credit reports show the reduced debt owed we might be able to work it that way.
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