declined finance

neil_g

neil_g

Suspended / Banned
Messages
30,364
Name
Neil
Edit My Images
No
does anyone else think its a bit off that a company/bank can refuse to lend you money without saying why?

i mean as far as im concerned im not a bad credit risk, in fact not so long ago i did an experian assessment and came out in the upper 90% or something. im on the electrol role, no missed payments for years and years etc. so what exactly am i supposed to do to improve (if necessary) if they dont say??!

:razz:

rant over.
 
It is annoying not knowing what the problem is because if you don't know you can't fix it, presume you are working, been in stable employment and address? Have you had a lot of searches on your credit file? sometimes lenders are cautious if they think the customer is desperate for the loan..(not saying that is the case just throwing some ideas in for you) if you apply for more than a couple of things like credit cards, store credit within a few months they can decline you.

They all have their own methods of checking too so a good rating on Experian wouldn't be any good if the company used a different reference company.
 
Companies often use Equifax as well as Experian
 
You can 'pay to' get a copy of the credit report, there should be details of that in the info they gave you. There are lots of stupid reasons why you can be refused that have nothing to do with your ability to pay.
 
neil_g said:
does anyone else think its a bit off that a company/bank can refuse to lend you money without saying why?
Click to expand...
Not really. They aren't duty bound to lend you money so why should they have to explain the reasons why they're not going to. I admit it would be very nice if they did as it could be something you could easily explain away so that they would lend you money but the bank over masively over cautious now so they're not really interested in what you think any more.
 
Happened to a friend of mine recently...turns out because he wasn't sure his credit card enough!
 
your problem appears to be you are too "responsible" if you pay of loans quickly, always pay off Credit cards that month etc etc

they LIKE you to have a debt history

Bizarre - but when I crashed the taxi, struggled with debt and bank loans, I got zillions of offers to borrow YET MORE money....:thinking:
 
Ive been told they can turn you down if you dont have any credit history such as credit cards so if you have saved and paid for things without taking out credit they wont give it when you apply later in life
Bob
 
they like you to have a debt history-because they know your probably more susceptible for delaying payment etc which therefore helps them to make more money by adding interest...the banks are evil!
 
yup i have card now which i pay much more than the min each month, i have had loans in the past that have now been paid off in full etc.

ive jsut done an equifax report and i cant see the issue..
 
What sort of lending were you after? Loan, Credit Card, X months 0% deferred payment (like most sofa places offer)?
Whether your credit history makes you suitable depends on the product applied for.
 
neil_g said:
does anyone else think its a bit off that a company/bank can refuse to lend you money without saying why?

i mean as far as im concerned im not a bad credit risk, in fact not so long ago i did an experian assessment and came out in the upper 90% or something. im on the electrol role, no missed payments for years and years etc. so what exactly am i supposed to do to improve (if necessary) if they dont say??!

:razz:

rant over.
Click to expand...

I thought that you can write to them and they have to tell you why you've been declined...?

Good thing to do is get a credit card, use it, and pay it off straight away. Do this a few times and it will build up your rating
 
How long have you been using your Credit Card for? If this is the case, I would def write to them and demand an answer for being declined.
 
wow...not sure what it could be then if your rating is good. I have heard that the slightest little thing can affect a decision however - i.e. overdraft went over limit by a £1, or something silly like that. The only other thing without going into it,could be the size of the loan. Either way, you have a right to know why they came to that decision so you can perhaps stop it from happening in the future.

Hope you get it sorted out soon
 
remember that more credit cards you have, your credit score goes up :) yes, sounds silly but its how it is :)

you can damage your score for a looooong time but lets say missing one payment for BT for a few days etc...if you have, it will be there for ages and sometimes can even be in a way of getting a mortgage etc....
 
did you apply through your bank?
Not being too nosey - how much did you ask for?
different amounts with different lenders hit different criteria. At one time certain companies were refusing loans because they didn't have the money to lend, and whilst I think that has stopped, there could be many reasons
 
Yeah I know!

ALso what did you put the purpose of the loan for?

THey will take your income, and work out what expenses that you have to pay each month and then see what you have left to work out if you can afford it.

If you said ti was for a new car, they will add the cost of your credit card onto the cost of the loan and see fi you can afford it.
If you said consolidation, they wil replace the ccard with the loan, to give a lower figure (usually, though they do know some people say consolidation and then don;t do it)
 
Last edited:
remember that more credit cards you have, your credit score goes up yes, sounds silly but its how it is
Click to expand...

I didn't know this - I might apply for a couple more! lol
 
neil_g said:
yup i have card now which i pay much more than the min each month
Click to expand...

Wonder if that's it, that you don't clear the debt so you're more risk these days than someone who does?

AmEx were paying their customers $300 if they cleared their debt and closed their account. :shrug:
 
You must log in or register to reply here.
Back
Top